Bitcoin
Bitcoin is the most abused cryptocurrency by criminals
According to a recent report from Europol’s Internet Organized Crime Threat Assessment, Bitcoin remains the most commonly exploited cryptocurrency by criminals.
O report noted that Bitcoin is often converted into stablecoins like Tether (USDT) for stability and is still frequently found in cybercrimes and scams. The Tron blockchain’s lower transaction fees have made it more popular for USDT transactions.
“Bitcoin remains the most abused cryptocurrency by criminals, but the use of alternative currencies (altcoins) appears to be growing,” the report says.
Stablecoins with blacklist functionality allowed authorities to freeze suspicious funds.
The rise of Monero’s criminal popularity
Monero (XMR) is an altcoin known for emphasizing privacy and anonymity. Unlike Bitcoin, which offers a transparent ledger, Monero uses cryptographic techniques to blur transaction details.
These confusing transactions make it difficult for law enforcement to track the sender, recipient, and amount of a fraudulent transaction.
According to the report, this privacy-centric design has made Monero popular among individuals seeking to maintain financial confidentiality and among cybercriminals.
Additionally, Monero uses ring signatures, stealth addresses, and confidential transactions to ensure user anonymity. These features allow it to be used in various illicit activities, such as ransomware attacks, where perpetrators demand payment in Monero due to its untraceable nature.
According to the report, Monero is used on the dark web to purchase illegal goods and services, as its privacy features help it escape law enforcement scrutiny. Despite its controversial uses, Monero is also valued for legitimate privacy-focused financial transactions.
Europol mentions other crypto money laundering techniques
The report also addressed cryptocurrency laundering techniques that are evolving with varying complexity based on the nature of the crime.
Investment scams often use simple and common methods, relying on traditional channels like money mules and international bank accounts. But encrypted messaging apps are now preferred for money-to-crypto exchanges, bypassing compliance checks and hiding identities.
There is also a growing use of crypto debit cards in cybercrime.
“The use of cryptocurrency debit cards has also seen a resurgence as they can be used to quickly convert cryptocurrency to cash at ATMs,” the report says.