ICE: Criminals Get Vulnerable When Exchanging Crypto to Fiat
October 8, 2018
The US ICE officer has claimed that converting illegally gained cryptocurrencies to fiat makes criminals an easy meat for police.
During the hearing at the United States Senate Caucus on International Narcotics Control deputy director of domestic operations in ICE Matthew Allen said, digital currencies like Bitcoin and Monero are one of the most widespread ways to purchase illicit drugs on the US territory. He added that many criminals use unregulated decentralized p2p exchanges to trade crypto coins.
According to Allen, illegal crypto operations can be traced when users try to convert digital coins to fiat and vice versa. The ICE official has stressed, it is that moment when p2p-platforms become vulnerable and thus can be disclosed by law enforcement bodies.
“Utilizing traditional investigative methods such as surveillance, undercover operations, and confidential informants, coupled with financial and block-chain analysis, ICE-HIS is able to disrupt the criminals and dismantle the TCOs, as well as the cryptocurrency exchangers who typically launder proceeds for criminal networks engaged in or supporting darknet marketplaces”, Allen added.
Note that quite recently a US DEA special agent Lilita Infante has declared, it is speculative investors (~90%) rather than criminals (~10%) who resort to Bitcoin. But, as she put it, despite significant decline in crime activity today digital currencies still remain the best payment option at darknet stores.