An Expert Claims Criminals are Shifting from Bitcoin to Stablecoins for Illegal Activities
An expert on cryptocurrency has recently suggested that criminals are moving away from Bitcoin and turning to stablecoins for their illicit financial activities. Tara Annison, the former head of technical crypto advisory at Elliptic, revealed during her presentation at EthCC in Paris that criminals are now favoring stablecoins like USD Coin (USDC) over Bitcoin. She explained that the rise of decentralised finance protocols, mixing services, and stablecoins, especially those pegged to the dollar, offer more discreet avenues for illegal transactions.
Key Points:
1. Criminals are increasingly using stablecoins, such as USDC, instead of Bitcoin for illegal activities.
2. Stablecoins provide easy access and can be laundered through decentralised exchanges.
3. Centralised issuers of stablecoins have the power to freeze specific tokens, hindering criminals from converting their assets into fiat currencies.
4. Ponzi and pyramid schemes remain a significant concern in the crypto sector, resulting in $7.8 billion in scams.
5. Criminals employ innovative techniques to obscure their tracks, using tools like DEXs and mixers.
Hot Take:
The shift from Bitcoin to stablecoins for criminal activities highlights the evolving nature of the crypto landscape. While stablecoins offer some advantages for law enforcement agencies, the persistence of scams and the constant innovation of criminals pose ongoing challenges. The decrease in crypto scams may be attributed to the current bear market, suggesting that reduced hype and lower prices make the sector less appealing for criminals.
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