Europol claims that Bitcoin is still the best option for criminals

Bitcoin has remained the most used cryptocurrency by criminals, even with the rise of privacy coins like Monero.

According to Europol’s recent Organized Internet Crime Threat Assessment Report, financial crimes also remain the main illicit use of cryptography.

Bitcoin’s popularity with criminals raises concerns

Bitcoin has been the preferred asset for ransomware groups due to its accessibility to non-expert users compared to alternatives such as Monero (XMR). Despite this, criminals often convert Bitcoin into stablecoins to avoid market volatility, especially when obtained through investment fraud.

Rising cryptocurrency prices and media attention have led to an increase in fraudulent investment schemes, according to the report. Cryptocurrencies, especially the US dollar-pegged stablecoin Tether (USDT) on the Tron (TRX) network, are frequently reported in these schemes, likely due to the network’s low transaction fees.

Additionally, the use of altcoins in illicit activities has increased, with underground banking and crypto debit cards gaining popularity for quick cash conversion at automated teller machines (ATMs).

There is also a growing trend of using encrypted messaging apps for cash-to-crypto exchanges, allowing criminals to evade compliance checks and hide their identities.

Meanwhile, Europol expressed concern over the approval of one-off Bitcoin ETFs, saying they could open new avenues for fraudsters. In addition, the companies that issue these ETFs have significant crypto holdings, making them attractive targets for fraudsters.

Monero is gaining traction among criminals

While Bitcoin remains the crypto of choice for ransomware groups, the Europol report highlights the growing use of Monero (XMR) as an alternative. Monero’s privacy features make it an optimal choice for criminals looking to hide their funds.

In January 2024, a major crypto-jacking operation was discovered in Ukraine. The operation had secretly mined more than €1.8 million ($1.95 million) of crypto. Although the scheme focused mainly on Monero mining, it also included Ethereum (ETH) and Toncoin (TON).

The report highlighted that the decentralization inherent in Web3, blockchain technology and peer-to-peer (P2P) networks creates environments conducive to cybercrime. These technologies allow transactions to be carried out anonymously and outside the reach of the authorities. Europol warned that as these decentralized systems continue to evolve, they will increasingly facilitate cybercriminal activities.

Europol noted the challenges for law enforcement in monitoring and prosecuting such activities, particularly when virtual asset service providers are non-compliant and based offshore. This is due to privacy laws, particularly regarding end-to-end encryption (E2EE) communication platforms, which prevent law enforcement agencies from accessing any criminal communications.

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