Some crimes that have been presented with the use of cryptocurrency money, we can mention the scam, illegal collection of money, that is, what is known as the pyramid, money laundering, among others. Among the most relevant crimes is the one related to money laundering or money laundering, which is why a good part of the article is dedicated to this topic.

What is money laundering?

We know as money laundering the financial operation that consists in making the assets or funds obtained through illicit activities, make them look like the fruit of legal movements, and in this way they can circulate freely in the financial system. So money laundering begins with the commission of a criminal act considered serious.

We see that money laundering today is a big complex problem, dynamic worldwide, because of the way it negatively affects the economy, the government and the general welfare of the people, since it also represents a serious problem National, regional and international security. As in any business, criminal organizations have many ways to carry out their activity, there are companies considered ideal for money laundering or laundering, such as Western Union or Perfect Money, to name just these two, also prepaid cards, gift certificates gifts and any alternative instrument to fiat money related to this activity.

In this regard, Cryptocurrencies look like an asset that seems easy to be used for illicit purposes, since payment with Cryptocurrencies allows traffic of all types of goods without having any authority that can track them. From the beginning they took fame that could be used in illegal activities, and that surely, is the consequence of the misunderstanding of one of its characteristics that is anonymity.

Signs that cryptocurrencies could be used for illegal purposes

Declarations of some institutions once the Cryptocurrencies made their appearance, already indicated that it was an illegal currency, was not regulated and was also used to finance terrorism and therefore served to launder money. As an example, in a report by Europol in 2015, it indicated that Bitcoin accounted for 40% of payments associated with cybercrime. And it is basically possible to identify two activities in which it is related to Cryptocurrencies: Cyber ​​crime enabled: in which the crime is carried out within the virtual environment such as malwares or ransomwares.

Cybercrime: they are criminal behaviors that allow crimes committed supported by the use of computers and the internet. In both situations there is the possibility of relating it to the Cryptocurrency, in particular with Bitcoin. In the first case, for example, there were kidnappings of virtual information through the rasomware (harmful programs) that put pressure on the user to make payments in order to rescue the information, the emblematic case occurred with the Wanna Cry, a ransomware blocked the information to institutions and companies in 150 countries, which included companies such as MX and FedEx, and payment was required in order to recover Bitcoin.

How do you wash money from cryptocurrencies?

The way to launder cryptocurrency money is from a Bitcoin address that has been created by a Mixer or Tumblers, who mixes the capitals so that the trail is lost. This means that this Mixer is a type of tool that makes it virtually impossible to know the address that hosts the funds that come from illegal activities. Let’s see: in case of having Bitcoins obtained legally, it is also possible to incorporate Bitcoins obtained illegally and mix them.

The scope of the Mixer is that it manages to combine the funds and eliminates the address of the illegal account and creates a new identification or new address. In addition to this, some businesses offer services of sectioning the amounts and guarantee that the illegal Bitcoins do not return to their client. This is the ideal service model for frequent washers.

How to avoid these crimes?

At the conference held at Europo headquarters, between the days of June 12 and 14, 2019, we explored how to prevent crimes related to the use of Cryptocurrencies, among the measures we have: Use gamification to promote the Creation of specialized agents in the tracking of Cryptocurrencies in investigations and it was also determined that officers should specialize in order to prevent crimes facilitated by the use of Cryptocurrencies.

At this conference, opportunities to strengthen cooperation and achieve new alliances were examined in order to detect and prevent crimes caused by the use of Cryptocurrencies and in turn help in the recovery of assets. There the participants reflected on the legitimacy of the use of Blockchain technology, including the use of Cryptocurrencies for commercial and investment activities, payment method and as a store of value.

What do you think about this topic? Did you know about these crimes associated with the use of cryptocurrencies?

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Image of B_A via Pixabay.com under a creative commons license.


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