An In-Depth Research Study on Bitcoin Laundering

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Bitcoin Laundering: Bitcoin is a form of electronic cash or cryptocurrency that engulfs the Dark Web. According to many who oppose the Bitcoin perspective argues the legitimacy of the electronic cash. They believe that Bitcoin is a form of currency involved in illegitimate activities.

To have an effective result, a narrow down search has been carried out of a sample from the year 2013 to 2016. The results were based on a forensic analysis tool meant to sort out the data by Elliptic. The tool uses the known data sets linked running through the parameters of over 214 conversion services viz., currency exchanges, gambling sites and mixers. The results were surprising though! It states that only less than a percent of Bitcoin circulation is involved in illegitimate activities conducting Bitcoin Laundering.

It was also found out that the highest amount of Illegitimate Bitcoin is received by the cryptocurrency. Moreover, 50 percent of the illegitimate Bitcoins circulate through two Europe based cryptocurrencies. Coming on to the Bitcoin Laundering, the study reveals that most of the washing services occur due to the mixers and gambling sites. 97 percent of the Bitcoin volume passing through these sources can be traced to only three services and from that half of the volume is involved in illegitimate activities.

Another result that has been revealed is that 97 percent of the illegitimate Bitcoin gets circulated in the Darknet Markets. And in 2016, the number dipped to 80 percent where the ransomware has been taken as the cause of the shift.

One of the main reasons behind conducting the Bitcoin Laundering study was to make the policy better. According to the recommendation of the Foundation for Defense of Democracies, law and enforcement agencies should concentrate more on the Bitcoin mixers, online gambling sites and darknet markets as these are the foundations of a humongous portion of illegal Bitcoin circulation or Bitcoin Laundering.

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