Criminals think bitcoin is the perfect hiding place? It was wrong


nnnSince the birth of the bitter currency, with the praise of its many advantages, this encrypted currency for illegal activities, the news is also frequently burst, and with this year swept the global blackmail software attacks, Bitcoin by criminals use Almost become the heart of all the suffering. And the criminals seem to think that the anonymous characteristics of Bitcoin are the perfect hiding place for their hidden identity. Recently, however, many companies have taken action to use block-chain technology to help the police identify criminals using Bitcoin, tracking the flow of digital money. This will help the investigator to obtain more information to carry out the investigation and its pursuit, making the criminals more difficult to hide.n
nnTranslation: Clovern
nMany companies have taken action to help the police identify suspects who use Bitcoin, and cunning criminals that are turning to other encrypted currencies.n
nA notice for offenders who use illegal use of Bitcoin: You can escape, but will be more difficult to hide. Law enforcement officers are using the public taxonomy of Bitcoin – the block chain, tracking the digital currency and pursuing the suspects using the digital currency.n
nAs the most popular kind of encrypted currency, Bitcoin exacerbated the roaring attacks of extortion software – extortion, such as the recent WannaCry network attack, the hacker will be victim of computer content as a hostage to their extortion money. Criminals can use Bitcoin to easily collect ransom, but do not have to show their identity. At the same time, the currency is also linked to online drug trafficking and money laundering.n
nWhile Bitcover users can hide their identities, they can not avoid revealing other useful information that may be useful for investigators. Each bit currency transaction is recorded on top of its block chain, which records all transactions recorded in that currency and allows access to these records. “The block chain provides a very useful real source,” said Jonathan Levin, co-founder of Chainalysis, who developed software tools for analyzing block-chain data. “The company’s products will help investigators figure out how people will use that currency.n
nChainalysis combines its analysis with other public information to identify the user (called the address) through the unique numeric string they use in the block chain and then draw the map of how to move the money. This technique can be used to carry out a lot of things, including identifying a bitcover exchange, to identify users who have gambling sites within the exchange to convert their bitcoels to dollars (see “Mapping Bit Currency Economy or Revealing User Identity “).n
nObviously, Chainalysis’s tools are very valuable to criminal investigators. Since 2015, the company has been the US Internal Revenue Service, the Federal Bureau of Investigation, the Securities and Exchange Commission, the US Drug Enforcement Bureau, Immigration and Customs Enforcement Bureau and the European Interpol investigation support. Levin said that in most cases, when the investigators have mastered some sort of clue (for example, they found all the bitter currency address) will turn to Chainalysis for help. If they can make sure the suspect is using a particular exchange, they can ask the court to get more information from the exchange.n
nBlockSeer founder Danny Yang said the government is also interested in tracking the flow of funds in the chain chain to determine whether to accept Bitcoar business is truthfully reported and appropriate tax. The company is also developing block-chain analysis tools and supporting law enforcement investigations.n
nThe encrypted currency exchange has also become the customer of these analytical firms. In many places, as required for traditional banks, it is unclear whether the law requires such exchanges to understand their clients and to ensure that they do not have money laundering. But the exchange if you do not know who its customers, it is difficult to open a bank account. Yang said, and if the government can understand that criminals are using some of the exchanges, then the exchange will want to be able to understand this information.n
nBut for the law enforcement agencies, the news is not perfect. There are always ways to confuse the investigator, such as the use of so-called hybrid services, that is, from a lot of users who charge Bitcoin, and these bits coins mixed together, and then at different times to send it back to different address. And more importantly, some of the newer encryption currencies, especially those highlighted by Zcash and Monero, are designed to hide the information that Chainalysis, BlockSeer, and other analysts use to track money.n
nAnd the cunning criminals have moved to these non-traceable systems. Last month, Chainalysis confirmed that WannaCry hackers were able to convert some of the extortion money from Bitcoin to Monero before the service they were using to place their address in the blacklist.n

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