One of the main criticisms of cryptocurrencies is that it is mainly used to finance illegal activities. Encryption fans argue that it is the same for legal currencies. However, financial regulators in most countries think differently. They often expressed concerns about anonymity and the digital pseudonymy currencies offered to criminals.
According to research conducted at the beginning of 2017, about a quarter of Bitcoin users and half of Bitcoin's activities are associated with an illicit company. He says that around $ 72 billion of illegal activities each year involve Bitcoin. This is close to the extent of the sale of illegal drugs in the United States and in European markets.
Elliptic, a startup focused on the analysis of criminal activities in cryptocurrencies, and the Center on Sanctions and Illicit Finance conducted research in 2018 which showed a fivefold increase in the amount of large-scale illegal operations on the Bitcoin blockchain between 2013 and 2016. The organizations analyzed the history of over 500,000 bitcoins and identified 102 criminal entities. They included dark web marketplaces, Ponzi schemes and ransomware / malware attacks.
Criminal activities on the Blockchain
They also found that 95% of all recycled coins came from nine dark web markets, including Silk Road, Silk Road 2.0, Agora and AlphaBay. The agents of the order forces are beginning to use sophisticated tools to easily detect illegal activities that happen through blockchain networks. They often collaborate with private security companies that have developed innovative solutions to track illegal activities.
For example, the Bitfury group was able to track the Bitcoin movement from the Japanese Zaif exchange when it tackles the hack in September. Zaif had lost $ 60 million in cryptography, with about 6,000 bitcoins.
According to the Bitfury team, 30% of the stolen Bitcoins are still in the hacker addresses. While another 24% transfer to Binance for exchange / withdrawal. He says that the remaining 46% is divided into small quantities and transfers to various addresses.
Physical attacks and thefts of Bitcoin
In addition to online hackers, cryptographic crimes also occurred offline. Furthermore, the victims are in force for the delivery of the cryptocurrency account details or face violent consequences.
The dramatic increase of Bitcoin's physical catalogs of theft and extortion of the creator of Statoshi.info Jameson Lopp, at the beginning of this year. Publish a detailed list of physical attacks addressed to GitHub cryptocurrency owners.
Domestic invasions of cryptocurrency owners have also increased. Five men are under arrest in Cumming. Georgia for planning the invasion of a cryptocurrency investor in January 2018.
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