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FBI special agent: blockchain ‘makes it easier to trace cryptocurrencies than cash’

27 June 2018 21:00, UTC

Kyle Armstrong, agent of U.S. Federal Bureau of Investigation responsible for cryptocurrency-related criminal finance, has made a rather interesting remark at a recent conference on digital assets, as reported by the financial media. While 10% of all drug traders use various marketplaces supporting cryptocurrency and there are 130 cases connected to their use in the world of crime, Armstrong noted that blockchain’s open nature helps the FBI.

As cited by Bloomberg, blockchain ‘makes it easier to trace cryptocurrencies than cash’, although journalists or Armstrong himself did not clarify the situation with privacy coins. The agent still highlighted transaction anonymity as one of obvious obstacles. In the case of Bitcoin, there have already been actual precedents of tracing criminals via transparent blockchain, while Monero, DASH, Zcash and other assets have various means of additional removal of financial traces. Due to this, Europol has openly accused those three coins of hampering the work of the law enforcement.

The high-ranking investigator also told that the United States southwest border saw a rise of extortion cases which were also connected with digital currency. One can assume that the Mexican criminal groups are involved, as this region is very complicated in the sense of border control.

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