Here’s Why Monero (XMR) is Up 28%

Monero, a privacy-focused cryptocurrency, has seen a price surge of over 28% in the last 24 hours following a significant development. According to pseudonymous crypto investigator ZachXBT, a malicious individual transferred approximately $330.7 million worth of Bitcoin from a victim’s wallet a few hours ago.

This transfer was made to a specific address, after which 3,520 BTC was sent through multiple cryptocurrency exchanges. The hacker then swapped the funds for Monero (XMR).

This action caused XMR to surge over 50% at first, but it later dropped to 28%. At the time of writing, the asset exchanges hands at around $271.77.

What is Monero (XMR)?

Monero (XMR) is a leading privacy-enhancing cryptocurrency designed to ensure anonymity and security. Launched in 2014, the layer-1 blockchain provides a secure, private, and untraceable trading experience. This has made it a popular choice for users who prioritize privacy.

Monero differs from major cryptocurrencies, as transactions on the blockchain can be viewed and traced on a public ledger. As a unique cryptocurrency, the network employs various cryptographic techniques to conceal the identities of both senders and receivers, as well as transaction details.

Like major cryptocurrencies, Monero utilizes a public and decentralized ledger. However, as a fungible asset, transactions on the network cannot be linked to a particular user or real-world identity. While innovative, Monero has attracted bad actors who use the network for illegal activities.

Bad Actors and Monero

Monero’s focus on privacy has a good purpose because it can be a top choice for crypto assets among users who value both anonymity and security. However, this integral feature also poses some challenges.

In the past few years, many critics have voiced their concerns about hackers’ use of Monero. Capitalizing on its strong anonymity, many attackers prefer to use the asset to hide their traceability. For example, the infamous Lazarus Group has been reported to use Monero (XMR) to help launder stolen funds, especially from their cryptocurrency heists.

Additionally, Monero’s prominent features make the asset attractive for users who operate on the dark web. White House Market, one of the most active darknet markets, encouraged its users to shift from Bitcoin to Monero for transactions. It eventually transitioned to accepting only Monero before its closure.

Last year, a CoinTab report revealed that three people were arrested following an investigation into illegal activities involving darknet markets and money laundering. Among other things, the law enforcement officers seized a large amount of crypto assets from the suspects. This included $7.1 million worth of Monero (XMR).

In a related development, ZachXBT detailed how bad actors converted some stolen funds to XMR to avoid traceability. The victim was a Genesis creditor who lost $243 million worth of bitcoin in a social engineering attack.

It is also easier for scammers to use the network to execute money laundering. For example, in 2021, the U.S. Department of the Treasury’s Office of Foreign Asset Control (OFAC) alleged that some individuals used XMR to launder funds stolen in ransomware attacks.

Since transactions on the blockchain are untraceable, it can be difficult for law enforcement agencies to investigate on-chain fraudulent activities using Monero. Worse still, the individuals involved might escape without facing prosecution.

Although Monero (XMR) remains controversial within the cryptocurrency industry, the asset has established itself as the world’s most popular privacy-focused cryptocurrency. Live data from CoinGecko reveals that it has a market capitalization of over $4.9 billion. Its current 24-hour trading volume is approximately $300 million.

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