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Europol Finds Equal Incidence of Criminal Cases Involving Bitcoin and Altcoins

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Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

July 23, 2024

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EU police force Europol revealed that the number of criminal cases it handles involving Bitcoin is nearly the same as those involving altcoins.

In its latest Internet Organised Crime Threat Assessment (IOCTA) released on Monday, the agency highlighted a rise in crypto use in various criminal activities. Specifically, it found a noticeable rise in the use of altcoins for criminal purposes.

The agency noted that ransomware attackers primarily request Bitcoin for ransom payments because it is easier to obtain than other tokens. However, there have been instances where demands were made for different crypto, such as Monero.

🚨In 2023, millions of victims across the EU were attacked and exploited online on a daily basis.

📍Today, Europol published the Internet Organised Crime Threat Assessment (IOCTA) on:

🔴Key developments, changes & emerging threats in cybercrime.

More⤵️https://t.co/kTPaDMkHaV

— Europol (@Europol) July 22, 2024

Crypto Market Developments Open Doors for New Scams

Europol further warned that recent developments in the crypto market could influence how criminals exploit cryptocurrencies. Notably, scammers might start taking advantage of the increasing number of crypto-related exchange-traded funds (ETFs), it said.

In cases of investment fraud, there’s a growing trend of converting Bitcoin into stablecoins, such as Tether (USDT). This is primarily because stablecoins are less volatile in price. Also, investigators have found a higher prevalence of Tether on the Tron blockchain than on the Ethereum blockchain. This is likely due to the lower transaction fees on Tron.

Moreover, the involvement of non-compliant services continues to pose significant challenges in crypto investigations. While some companies have enhanced their cooperation with law enforcement, services based in offshore jurisdictions often lead to prolonged mutual legal assistance procedures, it said.

Europol Exposes Crypto Swapping for Laundering

Further, Europol reported a rise in crypto laundering through swapping services in 2023. Criminals use these services to conceal their funds — swapping to privacy coins for anonymity and to stablecoins for price stability.

Last month, Europol raised the alarm over crypto mining’s potential for money laundering. A report from the agency warned that criminals can use mining to hide ill-gotten gains and even turn a profit. For example, the BitClub Network case exposed how mining pools can be misused to fuel Ponzi schemes, fleecing victims of hundreds of millions of euros.