Key Points
- Bitcoin remains the top cryptocurrency exploited by criminals, often converted to stablecoins like Tether (USDT).
- Privacy-focused altcoin Monero (XMR) is gaining popularity among cybercriminals due to its untraceable transactions.
According to a recent threat assessment report, Bitcoin continues to be the most frequently misused cryptocurrency by criminals.
The report indicates that Bitcoin is often exchanged for stablecoins such as Tether (USDT) for stability. It is commonly found in instances of cybercrime and fraud. The Tron blockchain’s lower transaction fees have made it a preferred platform for USDT transactions.
Altcoins Gain Popularity Among Criminals
While Bitcoin remains the most abused cryptocurrency, the report notes an increase in the use of alternative coins (altcoins).
Stablecoins with blacklisting functionality have enabled law enforcement to freeze suspicious funds.
Rise of Monero in Criminal Activities
Monero (XMR), an altcoin known for its emphasis on privacy and anonymity, has seen a rise in its use among criminals. Unlike Bitcoin’s transparent ledger, Monero utilizes cryptographic techniques to obscure transaction details, making it difficult for law enforcement to trace fraudulent transactions.
The report suggests that Monero’s privacy-centric design has made it popular among individuals seeking financial confidentiality and cybercriminals. Monero’s features, such as ring signatures, stealth addresses, and confidential transactions, ensure user anonymity, making it a preferred choice for illicit activities like ransomware attacks.
Monero is also used on the dark web to purchase illegal goods and services due to its privacy features that help evade law enforcement scrutiny. Despite its controversial uses, Monero is also valued for legitimate privacy-focused financial transactions.
The report also discusses evolving cryptocurrency laundering techniques. Investment frauds often use simple and common methods, relying on traditional channels like money mules and international bank accounts. However, encrypted messaging apps are now preferred for cash-to-crypto exchanges, bypassing compliance checks and hiding identities.
The report also notes an increase in the use of crypto debit cards in cybercrime. These cards can be used to quickly convert cryptocurrency to cash at ATMs.
