A recent analysis by the Europol Internet Organized Crime Threat Assessment (IOCTA) indicates that Bitcoin continues to be the cryptocurrency most frequently used by criminals. Yet, there’s a noticeable uptick in the use of alternative cryptocurrencies (altcoins) for illicit activities.
Criminal Use of Bitcoin
According to the report, Bitcoin remains a staple in the world of cybercrime and fraud. Criminals are increasingly converting Bitcoin into stablecoins such as Tether (USDT) to benefit from its more stable value. The Tron blockchain is favored for these transactions because of its lower transaction costs.
The report states, “Bitcoin continues to be the primary cryptocurrency exploited by criminals, although there’s a rising interest in alternative coins.”
Law enforcement agencies are responding by using stablecoins that offer blacklisting functions, allowing them to freeze suspicious transactions and funds.
Monero’s Growing Appeal Among Criminals
Monero is gaining traction in the criminal underworld due to its enhanced privacy and anonymity features. In contrast to Bitcoin’s transparent ledger, Monero obscures transaction details through advanced cryptographic methods, severely hindering law enforcement efforts to track these activities.
Monero employs techniques such as ring signatures, stealth addresses, and confidential transactions to maintain anonymity for its users. This makes it particularly appealing for use in ransomware attacks and purchasing illegal goods on the dark web, where untraceability is paramount. Despite its notoriety in criminal circles, Monero is also appreciated for legitimate transactions that require privacy.
New Methods in Cryptocurrency Laundering
The report further discusses the evolving strategies for laundering money through cryptocurrencies. While traditional methods like using money mules and international bank accounts prevail, criminals are now also leveraging encrypted messaging apps for cash-to-crypto exchanges to avoid detection and compliance checks.
Moreover, the resurgence in the use of cryptocurrency debit cards in cybercrime has been noted. These cards facilitate the rapid conversion of cryptocurrency into cash at ATMs, streamlining the laundering process.
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