According to a report by Chainalysis, in 2023, $24.2 billion of illegal cryptocurrency was transferred. Chainalysis pointed out that a high proportion of these funds were attributed to recipients who were sanctioned or had connections to terrorism, accounting for 61.5% of the total illegal transactions in 2023. Andrew Fierman, Head of Sanctions Strategy at Chainalysis, stated that actors who are subject to sanctions are often isolated from the international traditional financial system, and cryptocurrency can be an alternative mechanism for storing, sending and receiving funds.