Bitcoin continues to be the cryptocurrency of choice for criminals, according to a recent report by Europol. The report highlighted that Bitcoin is frequently used in cybercrime and fraud, often being converted to stablecoins like Tether for added stability. The lower transaction fees on the Tron blockchain have made it a popular choice for USDT transactions.
While Bitcoin remains the most abused cryptocurrency, the report noted a growing trend in the use of alternative coins (altcoins) by criminals. One such altcoin gaining popularity is Monero (XMR), known for its emphasis on privacy and anonymity. Unlike Bitcoin, Monero uses advanced cryptographic techniques to obscure transaction details, making it difficult for law enforcement to trace fraudulent activities.
Monero’s privacy features, including ring signatures, stealth addresses, and confidential transactions, have made it a preferred choice for individuals seeking financial confidentiality and cybercriminals alike. This has led to Monero being used in illicit activities such as ransomware attacks, where payment in Monero is demanded due to its untraceable nature.
Despite its controversial uses, Monero is also valued for legitimate privacy-focused financial transactions. Its presence on the dark web for purchasing illegal goods and services is facilitated by its privacy features, allowing users to evade law enforcement scrutiny.
The report also discussed evolving cryptocurrency laundering techniques, with varying levels of complexity based on the type of crime. While investment frauds often rely on traditional methods like money mules and international bank accounts, encrypted messaging apps are now being favored for cash-to-crypto exchanges to bypass compliance checks and conceal identities. Additionally, the use of cryptocurrency debit cards in cybercrime has resurfaced, enabling quick conversion of cryptocurrency to cash at ATMs.
Overall, the report sheds light on the continued abuse of Bitcoin by criminals, the rise of Monero in criminal activities due to its privacy features, and the evolving landscape of cryptocurrency laundering techniques. As law enforcement agencies adapt to these trends, the need for innovative strategies to combat cryptocurrency-related crime becomes increasingly crucial.