Bitcoin Remains the Most Popular Cryptocurrency Among Criminals
Despite the rise of privacy coins like Monero (XMR), Bitcoin remains the most used cryptocurrency by criminals, according to a recent report by Europol.
Financial Crimes Continue to Be the Main Illicit Crypto Use
The report highlights that financial crimes, including ransomware attacks and investment fraud, continue to be the primary illicit use of cryptocurrencies. Bitcoin’s accessibility and popularity among non-savvy users have made it the preferred asset for ransomware groups. However, criminals often convert Bitcoin to stablecoins, particularly Tether (USDT), to avoid market volatility, especially when obtained through investment fraud.
The Rise of Altcoins in Illicit Activities
The report also notes a surge in the use of altcoins in illicit activities, with underground banking and crypto debit cards gaining popularity for quick conversion to cash at ATMs.
Criminals are also increasingly using encrypted messaging apps for cash-to-crypto exchanges, allowing them to bypass compliance checks and conceal their identities.
Monero’s Growing Popularity Among Criminals
While Bitcoin remains the preferred crypto for ransomware groups, Europol’s report highlights the rising use of Monero (XMR) as an alternative. Monero’s privacy features make it an attractive option for criminals looking to conceal their funds.
Challenges for Law Enforcement
Europol acknowledges the challenges law enforcement faces in tracking and prosecuting crypto-related crimes. Decentralized systems, such as blockchain technology and peer-to-peer (P2P) networks, enable anonymous transactions beyond the reach of authorities. The report warns that as these systems continue to evolve, they will likely facilitate cybercriminal activities.
Europol also highlights the difficulties in enforcing compliance with virtual asset service providers, particularly those based offshore or non-compliant. Privacy laws, especially those concerning end-to-end encryption (E2EE) communication platforms, prevent law enforcement agencies from accessing criminal communications.
