Wow! I know, you might be thinking those numbers are really high – and they are! – but it’s what Fortune.com tells us in their article: too many bad guys are using Bitcoin accounts for illegal transactions. Do you want to know more? Keep reading…
In spite of the proliferation of greater than 2000 cryptocurrencies, like harder-to-track privacy coins, the overwhelming majority of criminals still prefer Bitcoin for illicit activity.
“Bitcoin is by far the preferred,” Jonathan Levin, co-founder and COO of Chainalysis, tells Fortune around the newest episode of “Balancing the Ledger.”
Chainalysis tends to make software program that assists cryptocurrency firms and law enforcement trace the public ledger of transactions recorded on 10 unique blockchains. That quantity involves four new cryptocurrencies Chainalysis added on Wednesday, like dollar-backed stablecoins like Tether, Gemini Dollar, and USD Coin, at the same time as Binance Coin.
Still, Bitcoin, which is presently trading at just under $5,500, accounts for 95% in the cryptocurrency cases law enforcement investigates, in accordance with Levin.
Precisely the same reasons which have produced Bitcoin, the original cryptocurrency, the top digital coin out there have also made it criminals’ cryptocurrency of choice: It is by far the most beneficial as well as has the highest transaction volume of any of its peers, generating it much easier to trade and spend.
Quite a few of your opioid busts inside the U.S. in recent months stemmed from blockchain analysis, allowing authorities to trace illegal purchases of fentanyl along with other drugs paid for in cryptocurrency, Levin adds.
“What we’ve observed is the fact that there is the potential to tie some of those cryptocurrency transactions either towards the pharmacies in China or towards the solutions that people are using to distribute fentanyl,” he says. “Homeland Safety along with the DEA have essentially turn into definitely great at apprehending these people today.”
A single ongoing case that Chainalysis has not been quite as prosperous in cracking is the fact that of QuadrigaCX, the Canadian cryptocurrency exchange that earlier this year stated it had lost access to $190 million worth of consumer funds following the death of its CEO. When Chainalysis attempted to track the money that was supposedly trapped in in wallets only the late CEO could access, it discovered a potentially much more sinister explanation.
“What we discovered very swiftly was that Quadriga as an exchange basically didn’t have those customer funds that were reported in the media to become now lost-those funds really in no way existed,” Levin explains. What Quadriga really did with all the cash that consumers gave it to get Bitcoin remains a mystery.