Financial Investigations in the Era of Cryptocurrency Between Legal Reality and Technical challenges

Abstract

The special features of virtual currency systems, especially decentralized systems, present new challenges to law enforcement Many of the benefits that virtual currency systems promise to legitimate consumers, such as increased privacy in transactions and the ability to send money without an intermediary, act as obstacles to law enforcement when the systems are exploited for purposes Illegal, the main challenges identified by law enforcement officers dealing with virtual currency include regulatory and compliance asymmetries, transaction opacity and anonymity, and the global nature of the systems.

With the strategies of criminals and terrorists constantly evolving, using new technologies and techniques to commit crimes and stay ahead of law enforcement and security organizations, blockchain has provided a valuable opportunity for dark actors to conduct countless types of anonymous cryptocurrency transactions, ranging from drug smuggling to money laundering to terrorist financing. To replace dark alleys with dark markets, financial investigators are finding that they need to trade their traditional approaches to blockchain analytics if they are to keep up with criminals.

Our new topic delves into the challenges posed by cryptocurrency crimes to financial investigations in the absence of effective and regulating laws and legal and legitimate investigative techniques, the tools and techniques criminals use to avoid detection, what to look for in a blockchain analytics solution, the importance of the topic and the problem that investigation experts face Finance and the accelerated development of digital technology.