According to BlockBeats, a report from the European Union's Internal Security Innovation Center suggests that privacy coins, mixers, and second-layer platforms could make it difficult for law enforcement agencies to track funds. The report was released on Monday by crime-fighting agencies including Europol, Eurojust, and the European Commission, advising law enforcement agencies to prepare for encountering these types of tools in their investigations.
Cryptocurrency mixers have recently come under scrutiny. Dutch courts sentenced Tornado Cash developer Alexey Pertsev to over five years in prison after prosecutors successfully argued that the platform was created for money laundering. Tornado Cash allows crypto users to exchange tokens on Ethereum, BNB Chain, Arbitrum, Avalanche, and Optimism networks while hiding their wallet addresses.
The report also stated that 'second-layer solutions like Lightning Network could also be abused by criminals.' These platforms are designed to increase the speed and efficiency of transactions on the blockchain, but their potential for misuse is a growing concern for law enforcement agencies.