Amid the crypto-currency boom, Bitcoin remains the currency of choice for criminals, although the use of privacy coins such as Monero (XMR) is quietly on the rise, according to Europol’s latest Internet Organized Crime Threat Assessment report.
The Europol report clearly states that although the rise of privacy coins has provided new options for criminals, Bitcoin remains the main tool for illegal financial activities due to its wide circulation and easy access.
Bitcoin's popularity among criminals raises concerns
Compared to alternative currencies such as Monero (XMR), Bitcoin has become the preferred asset for ransomware groups due to its easy accessibility, especially among non-professional users. However, criminals are also aware of the volatility of Bitcoin prices, so they often convert it into stablecoins to avoid market risks, especially after obtaining Bitcoin through investment fraud.
The Europol report noted that as cryptocurrencies have seen a surge in price and media attention, the number of fraudulent investment schemes has increased dramatically. In particular, stablecoin Tether (USDT) on the Tron (TRX) network has been frequently implicated in these schemes due to its low transaction fees.
In addition, the use of altcoins in illegal transactions is also growing rapidly. Underground banks and crypto debit cards are becoming increasingly popular due to their ability to be quickly converted to cash at ATMs. At the same time, the use of encrypted messaging applications for cash-to-cryptocurrency transactions is also increasing, providing criminals with a means to bypass compliance checks and hide their identities.
In response, Europol expressed concern about the approval of Bitcoin spot ETFs, believing that this could provide new avenues for scammers. In particular, companies that issue ETFs have become attractive targets for scammers because they hold large amounts of cryptocurrency reserves.
Monero’s popularity among criminals grows
While Bitcoin remains firmly entrenched in ransomware groups, a new Europol report reveals a new trend in the increasing use of Monero (XMR) in the criminal world. Monero’s anonymous nature makes it an ideal choice for criminals looking to hide illicit funds.
In January 2024, a massive cryptojacking case involving €1.8 million (about $1.95 million) was uncovered in Ukraine, highlighting the illegal mining of not only Monero but also other cryptocurrencies such as Ethereum (ETH) and Toncoin (TON).
The report further highlights that the decentralized nature of Web3, blockchain technology, and peer-to-peer (P2P) networks provide fertile ground for cybercrime. The anonymity of these technologies allows transactions to be conducted outside the eyes of regulators, facilitating criminal activities.
Meanwhile, Europol warns that as decentralized technologies continue to advance, they may be used more to support cybercrime. In addition, law enforcement agencies face significant challenges in tracking and combating this type of crime, especially when the virtual asset service providers involved are non-compliant and operate overseas. This is because privacy laws, especially those protecting end-to-end encrypted (E2EE) communication platforms, further increase the difficulty of law enforcement as they limit law enforcement agencies' access to criminal communications. #比特币 #金融犯罪 #门罗币 #XMR #隐私币
Conclusion:
In the wave of cryptocurrency, Bitcoin and Monero, due to their decentralized nature and anonymity, not only facilitate legal transactions, but also unfortunately become a hotbed for illegal activities. The Europol report reveals this grim reality and warns us that we must take effective measures to deal with it. Collaboratively strengthening supervision, improving law enforcement capabilities, and international cooperation are essential to combating criminal activities using cryptocurrency. At the same time, technological innovation needs to improve the ability to track and combat crime to ensure the healthy development of the cryptocurrency field.
In addition, public education cannot be ignored. Raising people's awareness of the risks of cryptocurrency and enhancing their awareness of self-protection are important parts of preventing crime. By popularizing knowledge, we can help users identify and avoid potential scams and illegal activities. Only through the joint efforts of education, technology, regulation and society can we effectively curb the spread of cryptocurrency in illegal areas and protect financial security and personal rights while enjoying the convenience brought by cryptocurrency.
