Use of Cryptocurrency in Unlawful Activities

Do you consider this statement as accurate” cryptocurrency use for illegal activities”? You probably may not have witnessed it. Still, today criminals are certainly using cryptocurrency in unlawful activities. Criminals have introduced sophisticated ways to legalize illegal money that cost hundreds of millions of dollars. These digital wallets enable criminals to make transactions anonymously.

Cryptocurrency transactions get stored and recorded on a public ledger known as the blockchain, making it easier to track funds. Thanks to the law enforcement agencies introducing some techniques to track illicit activities on the blockchain. Also, using crypto apps for the smartphone makes crypto currency a lot more secure.

But it is complex to track the illegal use of cryptocurrency transactions. Here are some most common ways that criminals use it for illicit activities.

1.     High Anonymity

All transactions on blockchain certainly have public records, and anyone can get access to them for review. It keeps the identity of marketing makes in secret. These transactions combine one or more crypto addresses with a random set of characters. In simple words, it is equal to a bank account number.

When it comes to make a transaction, you send your address to the party who needs this address to deliver the funds. Even the transaction data is public, the transaction record is anonymous and not reachable by anyone.

It results in making the process easy for criminals who trade drugs anonymously. Plus, they sell weapons, explosives and use them for other unlawful activities. In addition, criminal organizations ask for funding and donations by keeping their identities secret. In this way, cryptocurrency is helpful for criminals, and it makes it complex to investigate mal activities.

2.     Easy Access and High Speed

Cryptocurrency has made it easy to carry on trading. It requires only an internet connection. Companies and individuals can easily download a digital wallet or download it to their own devices. It is easy to transfer money with some simple clicks. These digital assets do not get controlled by any central authority. Plus, there is no need for transaction validation on behalf of the main body or third party.

It makes money transfers accessible in a shorter time on an international level. It only takes minutes to make transactions with cryptocurrency. So, criminal organizations utilize this digital currency to make their illicit acts fast, accessible, and robust.

3.     Easy Transfer and Storage

Digital assets like cryptocurrencies get stored easily and do not need physical space. This makes it easy for criminals to transfer the amount quickly and in the meantime. Criminals might utilize it to conduct illegal activities on a national and worldwide level in a short period of time.

These easy transfers make it easy for criminals to steal large amounts of money and launder funds. These criminals are well-aware of popular money laundering strategies. So, it can make it easy to steal funds in small quantities. Plus, other most used laundering methods include hacking cryptocurrency through decentralized platforms.

Use of Cryptocurrency in Illegal Activities

Today, cryptocurrencies assist as a financial enabler for different illegal purposes. The most common uses are as follows:

  • Fraud
  • Drug trafficking
  • Human trafficking
  • Dark marketplace trading
  • Child exploitation
  • Money laundering
  • Terror funding
  • Cybercrime

Nevertheless, government security organizations are making the system enable to conduct a crypto criminal investigation to control illicit activities. It can include transactions and recognize parties involved.

However, it is not that easy to identify why and how criminals and terrorists choose cryptocurrencies for unlawful activities.

Criminals and terrorists do not use bank accounts to transfer their illicit money because banks have strict regulations and ask for specific requirements.

Plus, banks need identification documents based on rules, legal statements for making large transactions. So, criminals do not have any answer about these all lawful formalities. Neither do they have any proof of their transactions to make it real?

Bottom Line

Digital currencies are attractive for criminals because they have invented methods that can help them carry unlawful activities through cryptocurrency.

Even in some cases, these criminals make transactions in large amounts and keep their illegal activities secret successfully. However, the government needs to strengthen preventive measures and minimize the use of unlawful activities.

Ashif Zama Author

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