6 Reasons Why Cyber-Terrorist Make Use Of Bitcoin.

Legal News & Analysis - Asia Pacific - Regulatory & Compliance

2 September, 2020


After bitcoin creation by a pseudonym Satoshi Nakamoto, no one knew it'd become a world's favorite cryptocurrency. Nobody also knew that it'd be a way opener to other coins that would be used for accomplishing illicit functions. In money's history, we have had relationships between crime and virtual currency in the books. For instance, in 2013, Silk Road's infamous collapse after its closure due to law enforcement. It mentioned how criminals made illegal technological use on the internet. It’s commonly known and warned by financial advisers and lenders. This article discusses mainly the reasons for using cryptos by cyber-terrorists. Let's keep reading to understand better.


The blockchain analysis


Cash money is, in most cases, traceless and unknown. The blockchain system, on the other hand, is almost the opposite. It's infinite and immutable, appearing on a data ledger covering each and every transaction ever made. Following and tracing the information is made easy by law enforcers. However, it doesn't limit criminals from accessing the data also. The law enforcement agents may not be in a position to make follow up immediately after any suspicious action on transactions has occurred. But, spotting by looking at the study patterns helps identify cryptocurrency transfers for profiling and de-anonymizing suspects. 


One of the biggest crimes comes from stealing from numerous libertarians and millennials that thought cryptos were storage for lacking wage growth or investment. The good news is that the law enforcers are working as a strong team. They collaborate with various other specialized firms in space, including Elliptic and ComplyAdvantage. Elliptic is based in London, having been founded by Robinson Tom in 2013 to analyze blockchain services. Even when a dark web dealer was realized in the UK selling quantifiable MDMA, it's the Elliptic Company that handled it. They mainly focus on cutting money laundering rather than getting the cyber-terrorists themselves. It's achieved by offering tools to various businesses like digital currency exchanges and other financial companies. Doing this allows them to check cryptocurrency movement and transactions for connecting with terrorist activities.


The tools used are for monitoring. It works by letting an exchange company or bank screens its transactions through their software. By doing so, the bank can backtrace via the blockchain to identify the true wallet source for any funds transferred- whether genuine or related to criminal activities, be it a dark web marketplace or a ransom wallet. That means the company has to collect every cryptocurrency data and addresses associated with transactions for identifying what might not be right. The work is done by the company's data analysis team using several automated tools.


It may sound easy, but it’s not. There are also challenges faced in the process. For example, not all cryptocurrency exchange servers use the tools recommended. Some that utilize a different kind of tools give way for criminals to cash out without being realized. Fortunately, there’s hope in the implementation of an anti-money laundering regulation. It’ll help reduce chances for criminals to launder or cash out after performing the ill-gotten benefits.


ComplyAdvantage Company, on the other hand, was founded in 2014 to handle the frustration gone through by a person called Delingpole.


He was an officer working and dealing with reports on money laundering but lacked the required resources to perform his duties. The company enables individuals to file any suspicious activity reports to FINCEN plus other related regulators globally. It also liaises closely with cryptocurrency regulators to help understand the cyber-terrorists' current activities and behavior for ensuring clients detect and avoid such typology kinds.


Reasons why terrorist engage in bitcoin


Criminals get into abusing the modern currency for the following purposes such as;


●     Laundering dirty money

●     Defrauding investors

●     Monetizing ransomware

●     Purchasing illicit gods

●     Scamming victims out of money


A new investigating technique


Have you heard of Katherine Haun? She’s an investigator at the Justice Prosecutor Department concerning cryptocurrencies. She has investigated prison gangs, mafia, and corrupt officials for several years. Around seven years ago, her career completely changed after she was assigned a task to investigate bitcoin virtual currency. She said it was her first time hearing about the word bitcoin.


However, she thought of it as a common digital currency and perceived it similarly to how she saw normal cash. Her main duty was investigating white collar crime and corruption seen through the exploitation of early cryptocurrency users by government officials. An example is swindling of around 20,000 bitcoins, which approximately amounts to $150 million. Haun said that it'd have been hard to track the thieves if this amount had been in cash.


Acknowledging the threat


The biggest bitcoin wallet holder in the US is the Federal Bureau of Investigation, FBI. The team said they're no strangers to cryptocurrency theft and terrorism. Furthermore, they said the crime ill keep increasing as they've already had more than 130, 000 different investigation. US President Donald Trump recently ordered the creation of a tax force for more cryptocurrency fraud development. Many other cryptocurrency agents are working towards keeping cryptos crimes at bay, such as the European Union Agency for Law Enforcement Cooperation, EUROPOL.


The agency plus other more than 300 virtual currency experts attended the sixth conference to analyze matters relating to cyber-terrorism and cryptocurrencies. It was hosted at the EUROPL’s headquarters in Hague, Netherlands. Having law enforcement, let's us acknowledge the criminal activities by cryptocurrencies. The forum set may not be enough to counter every theft case, but their effort can be seen. The only thing they should better is changing and adapt proper means of catching the ill-motif people online. You may rely on cash as the king, but cryptocurrencies are a better option if terrorists prefer going online.


The Bottom Line


Cyberterrorism is mainly politically oriented for attacks against data, computer programs, and computer systems with information that will always lead to chaos. Most online currency thieves steal for purposes such as Laundering dirty money, defrauding investors, monetizing ransomware, Purchasing illicit gods, Scamming victims out of money.


We’ve got cryptocurrency enforcement agents and other regulators taking the lead in fighting against cyber-terrorism in bitcoins and other virtual system currencies. The tools for curbing such ill cases are so far working properly in the fight, thus helping reduce such activities. To trade safely, learn about bitcoin scams from legit sites, such as