Europol: The use of privacy coins as alternatives is increasing, but Bitcoin is still the first choice for criminals

Amid the undercurrent of cryptocurrency, Bitcoin remains the currency of choice for criminals, although the use of privacy coins such as Monero (XMR) is quietly rising. Europol’s latest “Internet Organized Crime Threat Assessment” report reveals this phenomenon.

The Europol report clearly states that although the rise of privacy coins has provided criminals with new options, Bitcoin remains the main tool for illegal financial activities due to its wide circulation and easy acquisition.

Bitcoin’s popularity among criminals raises concerns

Compared to alternative currencies such as Monero (XMR), Bitcoin is the asset of choice for ransomware groups due to its ease of acquisition, especially among non-expert users. However, criminals are also aware of the volatility of Bitcoin prices, so they often convert them into stablecoins to avoid market risks, especially after obtaining Bitcoin through investment fraud.

Europol’s report notes that as cryptocurrencies rise in price and receive widespread media attention, the number of fraudulent investment schemes has increased dramatically. In particular, Tether (USDT), a stablecoin on the Tron (TRX) network, is often implicated in these schemes due to its low transaction fees.

Additionally, the use of altcoins in illegal transactions is growing rapidly. Underground banking and crypto debit cards are becoming increasingly popular due to their ability to quickly convert to cash at ATMs. Meanwhile, the use of encrypted messaging apps for cash-to-crypto transactions is also on the rise, giving criminals a way to bypass compliance checks and hide their identities.

In this regard, Europol expressed concern about the approval of the Bitcoin spot ETF, believing that this may provide a new way for scammers. Companies that issue ETFs, in particular, have become attractive targets for scammers due to their large holdings of cryptocurrency reserves.

Monero’s favorincreasingly favored by criminals

While Bitcoin remains firmly entrenched in the ransomware community, a new Europol report reveals a new trend in which the use of Monero (XMR) is gradually increasing in the criminal world. Monero’s anonymity makes it an ideal choice for criminals seeking to hide illicit funds.

In January 2024, Ukraine revealed a large-scale cryptocurrency hijacking case, involving a sum of up to 1.8 million euros (approximately $1.95 million). The case not only highlights the illegal mining of Monero, but also involves other cryptocurrencies such as Ethereum (ETH) and Toncoin (TON).

The report further emphasizes that the decentralized nature of Web3, blockchain technology and peer-to-peer (P2P) networks provide fertile ground for cybercrime. The anonymity of these technologies allows transactions to occur beyond the sight of regulators, facilitating criminal activity.

Meanwhile, Europol has warned that as decentralized technologies continue to advance, they may be increasingly used to support cybercrime. Additionally, law enforcement agencies face significant challenges in tracking and combating this type of crime, especially when the virtual asset service providers involved are non-compliant and operate overseas. This is because privacy laws, particularly those protecting end-to-end encrypted (E2EE) communications platforms, further complicate law enforcement as they limit law enforcement agencies’ access to criminal communications.

Conclusion:

In the wave of cryptocurrency, Bitcoin and Monero, due to their decentralized characteristics and anonymity, not only provide convenience for legal transactions, but also unfortunately become a hotbed for illegal activities. Europol's report reveals this grim reality and warns us that we must take effective measures to deal with it. Coordinated strengthening of supervision, improvement of law enforcement capabilities, and international cooperation are crucial to combating criminal activities using cryptocurrency. At the same time, technological innovation needs to improve the ability to track and fight crime to ensure the healthy development of the cryptocurrency field.

In addition, public education cannot be ignored. Raising people's awareness of the risks of cryptocurrency and enhancing their awareness of self-protection is an important part of preventing crime. By spreading knowledge, we can help users identify and avoid potential scams and illegal activities. Only through the joint efforts of education, technology, supervision and society can we effectively curb its spread in the illegal field and protect financial security and personal rights while enjoying the convenience brought by cryptocurrency.

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