Public Key Podcast

[CHAINALYSIS PODCAST EPISODE 15] Why Crypto Mixer Usage Has Reached All-time Highs in 2022

Episode 15 of Public Key, the Chainalysis podcast, is here! In this episode, we talk with Kim Grauer about recent research from Chainalysis showing that usage of cryptocurrency mixers has hit all-time highs in 2022. What’s driving this activity? Listen to find out.

You can listen or subscribe now on Spotify, Apple, or Audible. Keep reading for a full preview of episode 15.

Public Key Episode 15 preview: Smart Contract Mixers all the rage in 2022, law enforcement cracking down on mixers and illicit activity still the main contributor to mixing services. 

In this episode of Public Key, our host, Ian Andrews (CMO at Chainalysis) sets a new podcast first, recording live in the New York Studio.  Ian is joined by podcast favorite, Kim Grauer (Director of Research, Chainalysis), who led research on a recent Chainalysis blog exploring how and why the volume of funds going to mixers have grown this year.

Funds going to mixers in 2022 have doubled over last year and Ian and Kim cover how mixers are used in the crypto ecosystem and the large amount of illicit funds that are being received by them. They also discuss recent law enforcement action against mixers and the surge in smart contract mixers correlated with recent DeFi hacks. 

Quote of the episode

“The smart contract mixer, which is similar to the coin join mixer in the sense that it’s non-custodial, everything is settled via a smart contract, but it doesn’t happen in one transaction. You can decide the pace of the transactions getting paid. Smart contract mixers are something that we’ve really seen thrive and take off this year. The share of all activity that’s going to mixers on the Ethereum side of things has really skyrocketed compared to Bitcoin..”– Kim Grauer (Director of Research, Chainalysis)

Minute-by-minute episode breakdown

  • (2:05) – Highlighting the year over year increase of cryptocurrency being sent to mixers 
  • (5:01) –Understanding the legitimate uses of utilizing cryptocurrency mixers and how mixers could be more compliant
  • (7:25) – Breaking down the stats of how much illicit activity is connected to crypto mixers
  • (8:45) – The sudden rise in scrutiny and law enforcement action on mixers
  • (12:05) – The strategy behind crypto mixers issuing their own tokens
  • (14:20) – Identifying and describing the differences between the 3 main types of crypto mixers
  • (16:10) – How the surge in hacking has changed the landscape in money laundering using mixers

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

  • Blog: Crypto Mixer Usage Reaches All-time Highs in 2022 With Nation State Actors and Cybercriminals Contributing Significant Volume
  • Report:The Chainalysis State of Web3 Report
  • Webinar: The State of Web: Watch On Demand (with Ethan McMahon and Kim Grauer)
  • Blog: Defi Hacks Are on the Rise
  • Blog: How the Crypto Industry Can Leverage Blockchains’ Transparency to Understand and Prevent Market Contagion
  • Video: Chainalysis Links New York 2022 (Video Replays) 

Speakers on today’s episode

  • Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
  • Kim Grauer (Director of Research, Chainalysis)

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