ChainCatcher news, according to Decrypt, a new report from the European Union pointed out that Bitcoin's Lightning Network and other L2 solutions are "data obfuscation" technologies that may be "abused by criminals."

The report pointed out that the Lightning Network's "two-party multi-signature payment channel does not broadcast all transactions to the blockchain, but only broadcasts the opening and closing of the channel," adding that it and other L2 solutions may cause "problems for law enforcement investigations."