Verge

Verge (XVG) is a privacy-focused cryptocurrency designed to provide users with high levels of anonymity by integrating advanced technologies such as Tor and I2P networks, which obfuscate IP addresses and transaction details. While these features enhance user privacy, they also create significant challenges for regulatory and law enforcement agencies worldwide, as they enable the untraceable movement of funds. As a result, Verge has been exploited extensively by criminals seeking to launder money, evade detection, and facilitate illicit trade on a global scale. The very strengths that make Verge attractive for privacy-conscious users also make it a preferred choice for laundering illicit proceeds, complicating global anti-money laundering efforts and regulatory oversight. This dual-use nature of Verge underscores the ongoing tension between privacy in financial transactions and the need to combat financial crime worldwide.

Verge (XVG) is a privacy cryptocurrency designed to anonymize user transactions using Tor and I2P networks, offering high-speed and untraceable transfers. This strong privacy has attracted illicit actors globally who exploit Verge for money laundering, evading law enforcement through decentralized, encrypted transactions. Since its inception around 2017, Verge has been flagged by regulators and law enforcement agencies worldwide as a cryptocurrency with high abuse potential for criminal financial activities. Despite growing regulatory restrictions, criminals continue to utilize XVG for layering and integrating illegal funds internationally. The lack of direct PEP involvement in public disclosures does not rule out such activities happening covertly. Overall, Verge exemplifies the challenges privacy coins present to global anti-money laundering efforts, as its technologies effectively obscure transaction trails and complicate regulatory oversight, making it a preferred tool in the toolbox of cybercriminals laundering money on a global scale.

Countries Involved

Global scale with notable attention in jurisdictions including South Korea, the United States, and various countries affected by darknet markets and unregulated crypto exchanges.

Date Discovered / Reported

Reports and concerns have been ongoing from 2017 through to 2025, with regulatory scrutiny intensifying particularly after 2018 due to both hacks and increasing global anti-money laundering measures.

Cryptocurrency Involved

Verge (XVG)

Type of Crime

Money laundering, illicit trade facilitation, anonymized financial transactions to evade law enforcement and regulatory oversight.

Entities Involved

Predominantly criminal networks, darknet market users, illicit traders, with indirect involvement of crypto exchanges hosting XVG. No specific named entities publicly identified but implicated users range globally.

PEP Involvement

No direct public evidence of politically exposed persons (PEPs) involved specifically with Verge laundering operations; however, anonymizing tech supports potential PEP usage to hide illicit proceeds.

Laundering Techniques Used

Verge’s core privacy features enable laundering through anonymized transactions obscured by Tor and I2P networks, allowing users to move funds without typical traceability associated with standard blockchains. Criminals exploit these features to split, layer, and integrate illegal proceeds globally. Additionally, laundering occurs through mixing XVG with other cryptocurrencies and cashing out via exchanges with weak AML controls or non-compliant jurisdictions.

Estimated Value Laundered

Exact figures are not publicly disclosed due to the nature of anonymized networks, but estimates from various law enforcement and crypto security reports suggest millions of dollars potentially laundered since 2017 across darknet markets and illicit platforms.

Transaction Analysis Summary

Transaction data shows a pattern of small, frequent transfers designed to circumvent detection thresholds, exploiting Verge’s rapid transaction speeds (~5 seconds) and multiple proof-of-work algorithms that obfuscate mining origins. Analysis points to widespread exploitation by illicit actors for quick cross-border fund movements without conventional AML scrutiny, making tracking and auditing extremely difficult.

Regulatory/Enforcement Actions Taken

Several countries including South Korea have banned privacy coins like Verge outright due to money laundering concerns. U.S. authorities have increased AML and KYC pressures on exchanges listing XVG, resulting in delistings on major platforms. Interpol and Europol operations targeting darknet markets have identified privacy coins as high-risk assets, promoting international crackdown initiatives on criminal infrastructure using such currencies. Despite these efforts, enforcement is hampered by the anonymous and decentralized nature of XVG.

Links to Reports / Sources

Case Title / Operation Name:

Verge (XVG) Money Laundering and Crypto Fraud Scheme

Country(s) Involved:

United States

Platform / Exchange Used:

Various unregulated or weakly regulated cryptocurrency exchanges and darknet markets

Cryptocurrency Involved:

Verge (XVG)

Volume Laundered (USD est.):

Estimated millions of USD since 2017

Wallet Addresses / TxIDs :

Multiple anonymized wallet addresses and transaction hashes not publicly disclosed

Method of Laundering:

Use of Tor and I2P anonymizing networks, transaction layering, mixing, rapid transfers, cross-chain swaps

Source of Funds:

Darknet market proceeds, illicit trade, ransomware payments, other criminal enterprises

Associated Shell Companies:

N/A

PEPs or Individuals Involved:

N/A

Law Enforcement / Regulatory Action:

Exchange delistings, regulatory bans of privacy coins in South Korea and others, CFTC enforcement actions against manipulative schemes

Year of Occurrence:

2017–2025

Ongoing Case:

Ongoing

AML Network Risk Rating:

🔴 High Risk