min to read

2019-09-21 14:12:23




News

CipherTrace introduces cryptocurrency criminal address tracking application

CipherTrace vs Financial crime

min to read

2019-09-21 14:12:23

Provider of analytical solutions CipherTrace has launched a mobile application that allows you to determine whether certain coins in the Bitcoin and Ethereum blockchains are connected with criminal activity.

Provider of analytical solutions CipherTrace has launched a mobile application that allows you to determine whether certain coins in the Bitcoin and Ethereum blockchains are connected with criminal activity. This is written by CoinDesk.

 

According to the company representatives, the CipherTrace Scout application uses existing tools, but it gives more opportunities for identifying, tracking and documenting criminal transactions in the field.

 

In particular, in the process of tracking addresses, the application identifies coins that could be used in illegal activities, including purchases on the Darknet and ransomware attacks demanding ransom in cryptocurrencies.

 

According to Julio Barragan, a financial crime and compliance analyst at CipherTrace, after a user enters a specific address, CipherTrace Scout generates a report, flagging potentially criminal addresses “with a high degree of certainty”.

 

“You can imagine some beat cop in a high risk area, literally finding something that appears to be tainted,” Barragan said. “He can share a case with an analyst at headquarters and that analyst could do the tracing very quickly to determine where the source of the funds were.”

 

Casey Bohn, a high-tech crime specialist and educator at the National White Collar Crime Center, where he trains police agents how to use cryptocurrency transaction tracking tools, notes that Chainalysis and CipherTrace are the most popular solutions.

 

However, if Chainalysis technologies can be considered a kind of federal standard, then CipherTrace Scout uses a very popular visualization among law enforcement.

 

“We can visualize the transactions. I can track the path from A to B and then start creating a visual display of transactions, which is often understood more easily,” says Casey Bohn.

 

He also noted that the launch of CipherTrace Scout took place at a time when there was an increase in the use of cryptocurrencies in street crime - prostitution, drug sales and child pornography.

 

“Young drug dealers on the streets have technically become more savvy and started trading online with cryptocurrencies,” Bohn added.

 

Julio Barragan also noted that the increase in the use of cryptocurrencies in crime was also facilitated by the wider spread of bitcoin ATMs.

 

“Buying a crypt is becoming very easy, and it is used in street crime,” said CipherTrace analyst.

 

It should be reminded that according to the August report of CipherTrace, since the beginning of 2019, cybercriminals have stolen $ 4.3 billion in cryptocurrencies.

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