Today cryptocurrencies are very often used to make crimes and money laundering. Let’s look at why cryptocurrencies are so attractive to cybercriminals and how they are used for money laundering. In addition, you will learn how to protect your cryptocurrency from “dirty coins”.
Cryptocurrencies are very often involved in money laundering, fraud, drug trafficking, human trafficking, black market trading, cybercrime, etc.
For example, in 2020, DarkSide hacker gangs were paid about $ 350 million. Predictive companies help track where assets are going. Among these companies, Chainalysis can be distinguished.
According to a Chainalysis study, in 2020, illegal structures received $5 billion.
At the beginning of the development of cryptocurrencies, scammers used cryptocurrency exchanges to cash out stolen coins. Between 2011 and 2019, many exchanges helped cash out 60 to 80 percent of BTC transactions.
State security organizations are called upon to resist money laundering by tracking illegal transactions and identifying the parties involved. For this purpose, special transaction tracking services are used to identify the best bitcoin mixers.
Thanks to the introduction of KYC and AML services on crypto exchanges, the percentage of stolen cryptocurrencies has decreased to 45 %. Therefore, according to statistics, the implementation of AML services is very effective.
Top 3 reasons, why cryptocurrencies are used for Money Laundering
Availability and high transaction speed.
Cryptocurrency trading is available to everyone. To start trading cryptocurrency, all you need is internet access and a cryptocurrency wallet.
Cryptocurrency is not regulated by government agencies, and therefore it is not controlled by third parties. Another advantage of cryptocurrency transactions is high speed.
Easy storage and transfer.
Compared to paper money, cryptocurrency is easier to store. You don’t need physical space to store cryptocurrencies. Third parties do not participate in the processing of transactions, as in the processing of transactions with fiat money. All transactions in the blockchain network are processed at a decentralized level. This makes cryptocurrencies available for use in the purchase of drugs, weapons, and other prohibited products or services. Each cryptocurrency owner can easily transfer cryptocurrency from one address to another both locally and internationally without third-party verification. In addition, cryptocurrencies can be sent between two different addresses belonging to the same person or different owners, whether they are locals or foreigners. They do not depend on banks or other financial structures.
All these features of cryptocurrencies make them attractive for money laundering operations and criminal activity.