The U.S. Government to Track Crypto Conversions
October 4, 2018 5:14 pm
On October 3 the role of digital currencies in drug trafficking was discussed by the U.S. Senate Caucus on International Narcotics Control. Matthew Allen, an assistant director of domestic operations, Homeland Security Investigations (HSI) detailed about the drug trafficking. He stated that while criminals convert cryptocurrencies to government-issued currency creates vulnerability.
Mr. Allen said that darknet marketplaces and other unindexed’ websites accept payments in cryptocurrencies such as Bitcoin and Monero, and more. He stated that HSI has few levels of success in tracking criminals who use cryptos for laundering and drugs.
Even though cryptocurrencies make transferring value easy, criminals need to convert their digital currencies into fiat currencies and even during the vice versa process too. According to him, whenever monetary exchanges are made, vulnerability will be created.
The officer stated:
“This is the time when criminals are most susceptible to identification by law enforcement means and methods.”
He continued saying that using traditional investigation methods like surveillance, undercover operations, and confidential informants, coupled with financial and blockchain analysis. HSI can disrupt the criminals and also trace cryptocurrency exchangers who support darknet marketplaces.
He revealed that national and international agencies are training investigators to track such actions. He said his agency trains investigators to determine firms from launderings and drug trafficking.