Cryptocurrencies such as Bitcoin, Ethereum and others promised to revolutionise the financial world by offering anonymity, decentralisation and fast transactions. However, these benefits have attracted not only investors and technology enthusiasts, but also criminal elements. Today, law enforcement agencies are facing new challenges in fighting cryptocurrency-related crime, which is becoming increasingly sophisticated.

Crimes in the cryptosphere: money laundering and drug trafficking

One of the biggest challenges facing law enforcement is money laundering through cryptocurrencies. Due to the anonymity of transactions, criminals can transfer huge sums of money while hiding their tracks. According to recent figures, more than $20 billion was laundered through cryptocurrencies in 2023 alone. Cryptocurrency exchanges often become a tool for such operations, especially those that do not comply with strict user identification requirements.

In addition, cryptocurrencies are actively used in shadow online markets to trade drugs, weapons and other illicit goods. ‘Dark markets’ such as the famous Silk Road, which were shut down, are being revived again, but in a more secure and decentralised form. This makes them more difficult to detect and dismantle.

New technologies - new approaches

Despite the difficulties, law enforcement agencies do not stay on the sidelines. They are actively implementing new technologies and methods to track and detect criminal transactions with cryptocurrencies. For example, analytics companies are developing solutions for tracking crypto transactions that allow them to identify suspicious activity and link it to real identities.

Also, international co-operation is becoming increasingly important in the fight against crime in the cryptosphere. Organisations such as Europol and the FBI are actively sharing information and coordinating to pursue criminals on a global level.

Conclusion

Fighting cryptosphere crime is a complex and multifaceted process that requires new approaches and technologies. Law enforcement agencies and regulators must constantly adapt to the changing environment to effectively deal with new threats. Despite the challenges, modern methods and international co-operation give hope that crimes in the cryptosphere will be successfully suppressed and cryptocurrencies will become a safer tool in the financial world.