Bloomberg recently reported that only 10% of Bitcoin transactions are related to crime. This is a significant reduction, as it was 90% in 2013. This was stated by Lilita Infante of the US Drug Enforcement Agency (DEA).
Ms. Infante works for DEA in the Cyberspace Investigations Task Force. This task force specializes in cryptocurrencies and the dark web. Infante explained that the bulk of the transactions are now done by speculators rather than criminals. Nevertheless, the Bitcoin trading volume associated with crime is higher than ever.
Evaluation Done by the DEA
Unfortunately, Infante did not share the data underlying this observation. She merely hinted that the DEA had sophisticated methods for tracking bitcoin activity. However, information from Infante differs significantly from previous investigations. The conclusion was that the use of bitcoin for unfair purposes has fallen much more. An example of this is the investigation of block analysis analyst Elliptic in January 2018. It concluded that only 1% of all Bitcoin transactions are illegal. The methodology and data were fully disclosed.
If Infante's statements are correct, then it can be said that legal Bitcoin trading has increased dramatically. He has clearly overtaken the trade for illegal purposes. At the same time, however, much more money is being spent on illegal activity over Bitcoin today than it was in 2013.
Bitcoin was considered popular with criminals because it was much more anonymous than the traditional banking system. Also, it is an effective way to send money to pay for anything. In addition, Bitcoin is extremely efficient at sending money across borders.
In 2013, DEA had little ability to track Bitcoin, Infante said. But now they are using advanced technology to easily associate bitcoin transactions with an identity.
Bitcoin transactions are now easier to track by the DEA
Of course, the usability of such techniques depends on it that users do not realize the full potential of Bitcoin. One can also perform Bitcoin transactions highly secretly. The methods used are “mixing” or “tumbling”. Also, you can use one-time addresses, anonymous routers, and VPNs to disguise your own IP, making it difficult to track.
In addition, Infante hinted that the DEA could also track privacy coins like Monero and Zcash. However, it did not provide any evidence for this claim.
The Bitcoin Blockchain is public. If a user is not careful, they can easily be tracked. So Infante concluded with the words:
“Blockchain offers us many ways to identify people. I would like to continue using it. “
Source: Bloomberg, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/nur-10-aller-bitcoin-transactions-have-with-current-to-tun-2013-customs-es-noch-90/
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