Europol: Bitcoin is ‘most abused’ crypto by criminals

According to a recent report from the Europol Internet Organized Crime Threat Assessment, Bitcoin remains the most commonly exploited cryptocurrency by criminals.

The report noted that Bitcoin is often converted to stablecoins like Tether (USDT) for stability and is still frequently encountered in cybercrime and fraud. The Tron blockchain’s lower transaction fees have made it more popular for USDT transactions. 

“Bitcoin is still the cryptocurrency that is most abused by criminals but the use of alternative coins (altcoins) seems to be growing,” the report read. 

Stablecoins with blacklisting functionality have allowed law enforcement to freeze suspicious funds.

Monero’s rise in criminal popularity 

Monero (XMR) is an altcoin known for emphasizing privacy and anonymity. Unlike Bitcoin, which offers a transparent ledger, Monero uses cryptographic techniques to blur transaction details. 

These blurred transactions make it hard for law enforcement to trace a fraudulent transaction’s sender, recipient, and amount. 

According to the report, this privacy-centric design has made Monero popular among individuals seeking to maintain financial confidentiality and among cybercriminals. 

Also, Monero uses ring signatures, stealth addresses, and confidential transactions to ensure user anonymity. These features allow it to be used in various illicit activities, such as ransomware attacks, where perpetrators demand payment in Monero due to its untraceable nature.

According to the report, Monero is used on the dark web to purchase illegal goods and services, as its privacy features help it evade law enforcement scrutiny. Despite its controversial uses, Monero is also valued for legitimate privacy-focused financial transactions.

Europol’s mention of other crypto-money laundering techniques 

The report also touched on cryptocurrency laundering techniques that are evolving with varying complexity based on the nature of the crime. 

Investment frauds often use simple and common methods, relying on traditional channels like money mules and international bank accounts. But, encrypted messaging apps are now preferred for cash-to-crypto exchanges, bypassing compliance checks and hiding identities.

There is also increasing use of crypto debit cards in cybercrime. 

“The use of cryptocurrency debit cards has also re-emerged, as these can be used to quickly convert cryptocurrency to cash at ATMs,” the report read