Bitcoin Continues to Be the Top-Pick for Crypto Crime

Bitcoin remains the cryptocurrency of choice for illegal activities, according to Chainalysis, a globally respected crypto research company. However, blockchain analysis can help to oppose crypto-related crimes, the experts add.

Dubious Distinction

Bitcoin (BTC) is the current digital currency champion used by criminals, admitted Jonathan Levin, the co-founder, and COO of Chainalysis, a company renowned for its comprehensive researches on crypto crime. In a recent interview, Levin told Fortune that about 95 percent of all investigated cryptocurrency crimes involved Bitcoin. It is “by far the favorite” for hackers and criminals, said Levin. Currently, there are over 2,000 digital currencies in the world, including those specifically focused on privacy and untraceability, like Monero (XMR). Criminals, however, still prefer using Bitcoin. It’s not surprising because BTC is still the world’s top cryptocurrency in terms of value and trade volume. Its high volume makes it the easiest and most convenient to exchange and spend worldwide. Levin also reiterated that only two professional groups of hackers were responsible for at least 60 percent of all crypto hacks in 2018.

Silver Lining

Levin added that Bitcoin’s popularity among criminals proves helpful in a way. The transparency of cryptocurrencies and traceability of transactions recorded on a public blockchain enable experts to track down bad actors. With blockchain, law enforcement forces can build cases against suspects even quicker than in traditional finance, Levin claims. Because of blockchain’s cross-border nature, investigators don’t have to waste time waiting for data from foreign banks. To contribute to the global movement against money laundering, Chainalysis provides crypto transaction tracking software for law enforcement and businesses. One of its major clients is the US Internal Revenue Service. According to Levin, the analysis of blockchain-based records has already resulted in many arrests. As an example, he cites several opioid-related cases in the USA that helped to stop the flow of illegal drugs into the country. In a separate interview to Reuters, Levin also stressed the pressing need for the global watchdogs to come up with regulatory clarity on digital assets. “Global regulation of the cryptocurrency industry is inevitable for this truly borderless financial system to achieve mainstream adoption,” he explained. What’s your take on cryptocurrencies and their relationship with the criminal underworld? Let us know your thoughts in the comments below!

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