Sunday, August 18, 2019

Blockchain Forensic: Bitcoin is the Major Cryptocurrency Used by Criminals for Illegal Activities

Criminals love using Bitcoin more than any other cryptocurrency in their illegal activities. While that may scream high adoption rate, it’s obviously not a good thing. Chainanalyis, a blockchain analysis firm has reported that Bitcoin accounts for 95 percent of cases investigated by law enforcement, according to media’s report on April 25.

Criminals’ Choice of Bitcoin Over Other Assets

Per the report, Chainanalyis revealed that Bitcoin has outdone other cryptocurrencies on the market when it comes to the competition as to which is mostly used to facilitate crimes. There may be over 2,000 crypto assets on the market, but there is really no strong contender with the virtual asset.

Bitcoin’s popularity among villains does not come as a surprise since it is the most popular cryptocurrency based on its $93 billion market cap today. It is traded on several exchanges and accepted by a number of companies. As such, it makes it easy to be traded and spent which has made it the ideal currency for illegal activities.

Chainanalysis Uses Software to Aid in the Traceability of Transactions

Chainanalysis, on the other hand, has been using its software to enable cryptocurrency firms as well as law agencies to trace transactions on the blockchain. It may be difficult on a normal day to ascertain who made such transactions, but the company links a person’s identity to their crypto asset. It currently tracks transactions on 10 different blockchains and some assets alongside Bitcoin which it traces include USD Coin, Gemini Dollar, Tether, and Binance coin.

Jonathan Levin, co-founder and COO of Chainalysis while speaking to the media said Blockchain forensics analysis has aided with a good number of opioid bursts in the U.S. It has enabled authorities like the U.S. Drug Enforcement Agency to track illegal purchases made with cryptocurrency for fentanyl and other drugs.

Related Article:  Top 3 Reasons Why QuadrigaCX Exchange's Missing $150 million Looks Suspicious

Levin also said:

What we’ve seen is that there is the ability to tie some of those cryptocurrency transactions either to the pharmacies in China or to the services that people are using to distribute fentanyl.

Blockchain Analysis of Quadriga’s Wallet

Chainanalysis may have been able to track these trades, but the same cannot be said when it came to the QuadrigaCX saga. The latter is a Canadian based cryptocurrency exchange which claimed it had lost the private key to cold store wallets where $190 million of customer crypto is stored. Nonetheless, Chainanalysis after its research revealed that there was never any funds in such wallets.

In a similar event, BTCNN has made several crime-related reports where Bitcoin was the major asset used. Two Nigerians, for instance, were recently indicted for scamming three investors about 50 Bitcoins in an online scam. On April 24, BTCNN informed that two Indian law enforcement agents were apprehended for receiving a bribe of $1 million in Bitcoin

More Articles

Mark Risher Explains Why You Should Not Brag About...

Mark Risher, a Google executive in charge of monitoring email fraud and ID issues warns against showing off cryptocurrency holdings on social media platforms...

Crypto Community Compares The Anticipated Apple Credit Card With...

Apple's soon to be released virtual and physical credit cards should only stir a wave of excitement among users of iOS devices,...

Tether Stablecoin Launches on the TRON Blockchain

Tether (USDT), a stablecoin that is reportedly backed by the U.S. dollar will now run on the TRON Blockchain. The news was announced on...

Japan to Reinvigorate the Crypto Market by Reducing Tax

In order to reduce the negative impact of taxation on Japan's local crypto market, the government hinted on its plans to reduce taxation on...

Best Canadian Bitcoin Exchanges | All You Need To...

If you live in Canada, then there are several cryptocurrency exchanges you can buy and sell Bitcoin using the Canadian dollar (CAD)....

Giacomo Zucco Comments On Privacy, Bitcoin and Why He...

Giacomo Zucco is a famous personality in the crypto space. His knowledge of cryptocurrency, as well as humor, has endeared him to many, making...

A Case For Crypto: Banks Could Share Your Info...

Cryptocurrencies were born to bypass centralization of transactions by banks, institutions that in the current economic system hold the power to all your assets...

Pre-Fork Uncertainty of Bitcoin Cash Leads OKEx to Closing...

The Bitcoin Cash hard fork coming later today might lead to unstable prices and in response, major crypto exchange, OKEx suddenly closed its Bitcoin...

What Is The Expected Price Of Bitcoin In 2019?

With regards to the price of Bitcoin (BTC), what should all crypto enthusiasts expect in the year 2019? Will there be a bullish trend...

Research: Cryptocurrency Exchanges’ Trading Fee is 250x Higher Than...

Alex Kruger, an economist says we've been spending too much fees while transacting on cryptocurrency exchanges. According to the trader, the average...

ZenCash Teaches Venezuelan Refugees How to Use Cryptocurrency

Two Blockchain companies, Horizen which was formerly known as ZenCash and Cripto Conserje have collaborated. Their alliance has led to the development of a project that teaches...

Japanese Minister Dissociates Herself from Alleged Crypto Exchange Company

The minister for Internal Affairs in Japan, Seiko Noda, has denied interfering in the investigation of an alleged cryptocurrency exchange firm, while stating that...

Latest Articles

Why US-based people can’t bet with bitcoins at online...

Online gambling using bitcoin has been happening since the time when cryptocurrency came into being. In the initial days, gamblers used to opt for...

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...

How To Buy Bitcoin On Coinbase – Step-By-Step Guide

Buy Bitcoin on Coinbase instantly in the U.S., UK, Canada, or anywhere you are globally. Coinbase cryptocurrency exchange has enabled its customers buy the...

Grayscale Bitcoin Trust Boosts By 300%, Affects Oil &...

The institutional investment product, Grayscale Bitcoin Trust (GBTC), experienced a growth of more than 300% due to its outstanding performance since February, Forbes reports....

How To Create A Coinbase Account – Step-By-Step Guide

Create a Coinbase account with ease. Use this illustrative guide to create a Coinbase account for buying, selling, and storing cryptocurrencies. And you know...

$9.2 Trillion Transferred Using Bitcoins In 2.5 Years

Against present belief that bitcoin is only used for speculation, James McDowall, a crypto investor and advisor shared a metric about Bitcoin that's been...

Malware Posing as Movie File Manipulates Results and Steals...

A new form of malware posing as movie file was discovered last year and was designed to steal cryptocurrency and inject manipulated results into...

No-fee Mobile Trading App Quantfury Increases Crypto Support with...

The no-fees mobile trading app Quantfury has been expanding its crypto services lately, most notably with the addition of the DASH cryptocurrency. The coin...