Called a weak place in the criminal cryptocurrency schemes


Called a weak place in the criminal cryptocurrency schemes

Every time when criminals convert cryptocurrencies into Fiat money, a “vulnerable place in their activities”, said the immigration and customs enforcement (ICE).

3 October, the assistant Director of the Bureau of investigation internal security ICE’s Matthew Allen spoke about the role of cryptocurrencies in illicit drug trafficking at the thematic debate in the U.S. Senate. In his speech, he said:

On the dark marketplace and other nonindexed sites purchases are often paid with cryptocurrency, such as bitcoin, Monero, etc.

He added that the Bureau of investigation was able to achieve good results in tracking of criminals who use cryptocurrencies to launder the proceeds from drug sales. Let the digital currency and facilitate the transfer of value, says Allen, the criminals continue to change them for Fiat and it was at this point reveal themselves:

Whenever there is an exchange of money, but there is a vulnerability in their activities.

He called such operations are most easily identifiable by law enforcement officers and explained:

The use of traditional methods of investigation (observation, covert operations or informants) in combination with the analysis of financial transactions and the block chain can cause significant damage to the criminals and eliminate [transnational criminal organizations] and cryptocurrency exchanges, which usually launder criminal proceeds. supporting the dark marketplace.

Allen listed several types of cryptocurrency exchanges as well as ways to launder money through them. According to him, p2p exchanges and startups often refuse to register as formal financial services and do not comply with the law, striving to ensure the anonymity of users.

The representative of immigration and customs enforcement added that national and international agencies teach their employees how to efficiently keep track of cryptocurrency:

We train investigators, in an effort to keep the organization from money laundering or the use of cryptocurrency to Finance purchases of fentanyl, opioids or other drugs.

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