Prediction Markets & Cryptocurrencies

Pseudonymous financial flows mask illicit activity

Cryptocurrency is fast becoming a leading threat area for illicit finance. Illicit crypto transactions grew to at least $154 billion in 2025, more than doubling from the previous year, according to the blockchain data platform Chainalysis. 

The public but pseudonymous nature of transactions on the blockchain presents new challenges for researchers, journalists, data scientists and policy experts interested in dirty money flows.

Conflicts of interest and undue influence in the regulation of platforms are a major obstacle to effective control of corrupt cash in digital currencies. 

Through the Illicit Finance Data Lab, ACDC is working with journalists and researchers to increase investigative capacity and understanding. 

We are also building out our own capabilities. Focusing first on the intersections with corruption in public office, ACDC has begun researching insider trading risks on prediction market platforms, where users exchange crypto-currency denominated blockchain contracts on real-world events.