The US based FBI (Federal Bureau of Investigation) revealed that it is working on 130 cryptocurrency cases due to increase in illegal activities by crypto payments.
The news broke out at the Crypto Evolved conference in New York by Kyle Armstrong, the FBI Supervisory Special Agent, that FBI is currently investigating on 130 cryptocurrency related cases. According to the report released on Wednesday, the cases are related to crimes such as drug transactions, human trafficking, hacking in which cryptocurrency is a main component.
Kyle Armstrong, in charge of the FBI’s virtual currency initiative stated that;
“The cases ‘threat tagged’ to virtual currencies encompass crimes such as human trafficking, illicit drug sales, and kidnapping and ransom ware attacks”.
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Armstrong explained further scenario; recently there has been uptick in crypto related cases, citing that ‘the opioid epidemic’ has one area where FBI needs to focus on. Approximately, ten percent of drug users make online purchase in illegal digital marketplaces.
During the conference, several officials spoke about how exactly government regulation will help marketplace develop. One amongst, the SEC’s deputy director of the Division of Trading and Markets, Gray Goldsholle points,
“I do feel like there’s a real, growing awareness of how regulation is going to help this market”.
Moreover, the Southwest border of the US has also seen a rapid increase in extortion schemes related to cryptocurrencies. He said that, “threat-tagged” inquiries only make up a “small sliver” of the thousands of cases the FBI has.
The FBI reported that,
“Some of our criminal investigators face the challenge of identifying online pedophiles. Thus who hide their crimes and identities behind layers of anonymizing technologies. Else drug traffickers who use virtual currencies to obscure their transactions”.
Further, Armstrong believes that, potential blockchain makes it easier to track transactions unlike crimes involving cash. On the other hand, cryptocurrencies scenery makes it more difficult to properly investigate a crime.