Quantum
Computing
Generative
AI & LLMs
Drones
6G
Networks
Satellite
Comms
Group
Messaging
Platforms
Crypto-
currency
IoT
Devices
Metaverse
5G
Networks
Social Media
Incitement
7
Cryptocurrency
While the crypto market has experienced severe volatility in the past few years,
with many crypto coins and exchanges collapsing, criminals remain keenly
interested in using cryptocurrencies.
Crypto is particularly appealing to criminals due to:
Anonymity:
While transactions are
recorded on the blockchain,
the identities of transaction
makers are unknown.
Easy storage & transfer:
Unlike cash, requires no
physical space to store and
can be swiftly moved.
Access & speed:
Transactions are not processed through
traditional financial institutions, and
trading can be done easily and cheaply
through a wallet app or crypto ATM.
Borderless:
Crypto can be transferred across
borders without currency controls,
regulations or other barriers.
Criminals are using crypto to facilitate fraud, money laundering, drug trafficking,
terror funding, ransomware attacks and other cybercrimes. The types of
crimes and sophistication of techniques are constantly evolving, forcing law
enforcement to keep up.
Sanction evaders are increasingly using crypto to bypass economic regulations
3
.
In fact, 43% of illicit crypto transaction volume in 2022 came from activity
associated with sanctioned entities
4
.
Criminals are increasingly using stablecoins, such as USDT and USDC, due to
volatility in the crypto market. Stablecoins are cryptocurrencies that attempt to
maintain price stability by keeping reserves of fiat currencies, or through other
methods. While Bitcoin was the currency used in 97% of illicit trade volume in
2016, in 2022 it accounted for only 19%
5
, in part due to the move to stablecoins.
Impact:
DIGITAL AGE
Crypto-
currency
Responsible AI
Human-Machine
Collaboration
Video
Analytics