Bitcoin continues to be the cryptocurrency of choice for criminals, according to a recent report by Europol. Despite the emergence of privacy coins like Monero, Bitcoin remains popular among illicit activities involving financial crimes.
One of the main reasons for Bitcoin’s popularity among criminals is its accessibility for users who may not be as tech-savvy compared to other cryptocurrencies like Monero. Criminals often convert their Bitcoin holdings to stablecoins to avoid market volatility, especially when the funds are obtained through investment fraud schemes.
The report also highlights the increasing trend of fraudulent investment schemes in the crypto space, with stablecoins like Tether on the Tron network being frequently used in such scams due to their low transaction fees. Additionally, altcoins are gaining traction in illicit activities, with underground banking and crypto debit cards being used to quickly convert cryptocurrencies into cash at ATMs.
Moreover, criminals are increasingly turning to encrypted messaging apps for cash-to-crypto exchanges to bypass compliance checks and hide their identities. Europol has expressed concerns about the approval of spot Bitcoin ETFs, as they could provide new opportunities for scammers to exploit. Companies issuing these ETFs are seen as attractive targets for fraudsters due to their significant crypto reserves.
While Bitcoin remains the preferred choice for ransomware groups, the report also notes the growing use of Monero among criminals. Monero’s privacy features make it an ideal option for those looking to conceal their illicit activities. In a recent crypto-jacking operation in Ukraine, criminals mined over €1.8 million worth of various cryptocurrencies, including Monero, Ethereum, and Toncoin.
Europol warns that the decentralized nature of Web3, blockchain technology, and P2P networks create environments that are conducive to cybercrime. These technologies allow for anonymous transactions that are beyond the reach of authorities, making it challenging for law enforcement to track and prosecute criminal activities. The report also highlights the difficulties faced by law enforcement when virtual asset service providers are non-compliant and based offshore.
As decentralized systems continue to evolve, Europol predicts that they will increasingly facilitate cybercriminal activities. The use of end-to-end encryption communication platforms further complicates law enforcement efforts to access criminal communications. The report underscores the ongoing challenges faced by authorities in combating crypto-related crimes and emphasizes the need for international cooperation to address these issues effectively.