To finance their activities, cybercriminals and terrorists have started to use cryptocurrencies as relays. A genius idea at first glance, but which ends up turning against them in the end. This is what Judge Zia Faruqui and Prosecutor Jessi Brooks explained during the Unchained podcast. Law enforcement officials have thus demonstrated how this activity was traceable and the reason why those concerned cannot do without Bitcoin (BTC). Explanations.
Bitcoin transactions are relatively easy to follow
Having followed several high-profile cases relating to financing of criminal activities by crypto, the judge Zia Faruqui first spoke about the importance of bitcoin in commerce. ” You can buy a Tesla with Bitcoin. You can buy a Subway with Bitcoin. You can’t buy them with those other cryptos that no one has heard of, and as criminals keep chaining to cover their tracks, in the end, they must convert them into fiat currency “. The stage being thus set, the judge specifies that this is the choke point where law enforcement intervenes.
Like a large part of the population, criminals mistakenly think bitcoin is untraceable while its transparency makes transactions relatively easy to follow on the blockchain. Once they use bitcoin, therefore, their criminal activity is no longer a secret. To illustrate these words, Mr. Brooks took the example of the North Korean pirate union Lazarus Group. The latter who had stolen $ 250 million in cryptocurrency on a stock market in 2018 ended up being caught. Their mistake at the time was that of convert stolen funds into bitcoin.
Criminals are still forced to pass funds through bitcoin
In the face of this revelation, it is difficult to understand why the criminals insist on ultimately using bitcoin. The answer lies in two realities they face according to Mr. Brooks. The first of these is that it’s theirs impossible to use other cryptocurrencies which are more volatile at the risk of losing money. The strength that bitcoin would offer will always be a deterrent. The second reality is that bitcoin adoption is stronger, making it a trustworthy asset from which it is easier to switch back to the US dollar. For the prosecutor, it should always be so as long as bitcoin remains the largest and most trusted cryptocurrency.
By examining the above mentioned reasons, it is easy to understand why the two legal specialists allowed themselves to make such revelations. Until the criminals find another trick, the authorities can always count on the flaw in this practice to trace them back to them.