Criminal groups are using crypto because of efficiency, not obscurity
By: cryptosheadlines|2025/05/03 07:30:01
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com According to a newly released Chainalysis blog post, contrary to popular opinion, organized crime groups have adopted cryptocurrency because they think it is more efficient, fast and the perception that it affords them anonymity. However, they have limited intent or expertise for any sophisticated obfuscation of their financial trails. One of the biggest reasons criminal groups have resorted to using crypto is that it enables rapid, borderless payments, allowing their networks to move funds globally without the delays or risk linked to traditional banking systems.Why criminal groups are really using cryptoMexican cartels are one of the criminal groups out there increasingly taking advantage of crypto’s advantages. They have been observed using crypto to pay Chinese suppliers for fentanyl precursors, capitalizing on low transaction fees and instant transfers.Every single action not deliberately obfuscated on the blockchain is transparent and verifiable. Source: ChainalysisMany of these criminals operate on the common belief that crypto facilitates untraceable financial anonymity. It is actually a misconception, as every single action, not deliberately obfuscated, that happens on the blockchain is available to anyone with the know-how to see.Ironically, that misconception has been driving adoption, particularly among groups like cartels and wildlife traffickers who often reportedly use it without advanced privacy tools.The fact that so many of these bad actors have been using crypto in recent times proves that they are using it more because it is unrestricted by borders and simplifies financial operations for illicit activities, rather than because they think it grants anonymity.According to the report, this is why organized crime that capitalizes on crypto is often not sophisticated. Compared to state-backed cyber criminals like North Korean hackers who utilize advanced obfuscation methods like mixers or privacy coins e.g Monero, traditional organized crime groups just go about their business without covering their tracks.These criminals would often use regulated exchanges for cash-outs, an act that exposes their funds to KYC-compliant platforms. Good examples are cartel-linked launderers who move fentanyl proceeds through CEX accounts, leaving clear on-chain trails.It has also been observed that most groups stick to widely available cryptocurrencies like Bitcoin or stablecoins, choosing to avoid privacy coins because of how complex they make things or limited liquidity.The major focus is always on scaling operations rather than evading detection because crypto’s borderless nature allows them to reach their global customer bases.It is actually good news for law enforcementThe brazen use of crypto by organized crime groups for nefarious purposes, because they don’t try hard to hide, creates various opportunities for law enforcement.As earlier stated, virtually every action that happens on the blockchain can be traced because it acts like an immutable ledger. This means that investigators can trace transactions in real-time and map the criminal networks across borders, something that would have been almost impossible to do with traditional banking.The fact that criminals also rely on CEXs, which comply with KYC/AML regulations, can also help authorities identify and freeze assets as well as gather off-chain intelligence. A good example of this was when the Ledger co-founder was kidnapped and investigators were able to trace nearly all ransom funds and seize them.Unfortunately, while the blockchain offers avenues to track transactions, law enforcement faces challenges because of their limited blockchain expertise, as crypto is yet to go mainstream.While training can help more officers identify case overlaps, broader adoption is needed to properly capitalize on the transparency crypto offers.Mastering blockchain analysis will also encourage and aid proactive tracking, which will allow law enforcement to disrupt criminal networks before their crimes escalate. It is crucial this happens fast because criminals may eventually start employing more sophisticated techniques before crackdown efforts become coordinated enough.Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register NowSource link
You may also like

The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.

Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.

Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...

Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.

I never expected that the first application of AI x Crypto would be in security auditing
AI has accelerated attack efficiency and also promoted the upgrade of defense systems. The security audit sector is undergoing a transition from a dividend model to a competitive model.

What is your view on Binance's competitive advantages?
When the dividends of rule arbitrage gradually approach zero, can we produce product strength, governance capability, and trust that are commensurate with its scale?

ETH has entered a non-consensus phase, and the turning point is approaching!
This has nothing to do with the Ethereum Foundation or Ethlabs; Ethereum needs to win by solving real problems.

The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
It can continue to question the cost-effectiveness of stablecoins in the G10 currency corridor, but it cannot ignore the structural opportunities of stablecoins in emerging markets, corporate finance, and on-chain settlements.

The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
The living space is constantly being compressed.

Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.

Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?
Bitcoin vs. gold in 2026: Why are both assets falling, and what does their changing correlation mean? Discover what drives Bitcoin and gold prices and how traders can navigate different market conditions.

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
Overview of Important Market Events on June 24

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
The awareness level of the audience in the cryptocurrency industry—including media, institutions, and retail investors—is steadily increasing, and this trend has become a foregone conclusion.

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
The Ethereum Foundation has announced a new five-layer working framework, clarifying the focus of future development and reaffirming its commitment to decentralized core values amidst the wave of institutionalization.

Former SpaceX engineer reconstructs the financial execution system using first principles
Plan Execution Lab completes angel round financing for Singapore family office, with a valuation of 50 million USD.

Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
The throne of DeFi lending still exists, but the foundation beneath the throne needs to undergo a reconstruction or reinforcement.
The large models in the United States are moving towards closure in the name of security
The government successfully inserted itself as an approver between commercial AI models and their users for the first time.
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
Overview of Important Market Events on June 25
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Give up on heavily investing in Nvidia's "nine major bottlenecks"! This article analyzes the underlying logic behind top AI investors making billions: physical infrastructure such as electricity, HBM, and optical interconnects are the true keys to wealth in AI hardware.
Why do cryptocurrency projects always like to change their names?
In many cases, the old names of encryption projects have no competitive advantage, only historical baggage.
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
The trusted AI prediction ecosystem Manadia, which has secured $7 million in funding from well-known institutions like OKX, will globally launch in June. The core token UMXM has already been listed on multiple mainstream platforms, inviting you to seize the new blue ocean of the trillion-level predi...
Who is footing the bill for the $64 billion accounting frenzy?
Affected by Bitcoin falling below $60,000, publicly listed companies heavily invested in this asset are facing huge paper losses and valuation discounts, and their debt structure and accounting standards may trigger structural liquidity risks in the future.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com




