A new report from Homeland Security Investigations (HSI) debunks a myth. It turns out that criminals are not fans of cryptocurrencies at all – they prefer cash.
Criminals prefer cash
A new report published by Robert Whitaker, HSI Special Agent, indicates a very interesting phenomenon. It turns out that regulated cryptocurrency platforms are an important support for law enforcement today. Thanks to the transparency guaranteed by blockchain, they help the services track down criminals.
The villains already know about the above and – despite a certain myth – they do not willingly reach for cryptocurrencies. According to the report, only 0.61% of USDT transactions between July 2021 and June 2024 were flagged as potentially illegal. The situation is even better in the USDC field – only 0.22% of transactions were considered illegal, and less than 0.005% were related to entities subject to sanctions.
This is not the only study that challenges the myth about the harmfulness of cryptocurrencies. The Chainalysis report indicated that only 0.34% of all transactions recorded on blockchains in 2023 were related to crime (compared to 0.42% in 2022).
The reason for the above, however, is not only the transparency of the blockchain, but also the fact that the cryptocurrency market is already regulated.
KYT – a new form of fighting criminals
Agent Whitaker’s report also points out that the ability to track transactions recorded on the blockchain is a game changer for law enforcement and regulatory agencies – it offers the ability to “track money” in real time. This is done using the Know Your Transaction (KYT) process.
While traditional finance relies on Know-Your-Customer (KYC) processes, KYT leverages blockchain transparency to provide real-time visibility into transactions. This enables cryptocurrency companies and agencies to continuously assess risk and adds a new layer of security that traditional systems cannot guarantee, providing a more secure platform for users.
Integrating KYT with traditional cybercriminal tools has the potential to help create a more robust risk assessment framework, constantly updated with new blockchain data to stay ahead of emerging threats.
