The cryptocurrency market is like the Wild West, where anything goes and crime is everywhere if you aren’t careful. While Bitcoin got its start on the dark web, its use across the underbelly of the internet has only increased in 2020.
Could the growth of Bitcoin revenue on the dark web be partly responsible for the recent bullish momentum?Blockchain Analysis Reveals Growing Dark Web Bitcoin Revenues
Bitfury’s blockchain analysis product, Crystal, provides clear data about the inflow and outflow of BTC and other cryptocurrencies sent to and from exchanges and other wallets.Related Reading | Stimulus Checked: Here’s The ROI on a $1,200 Investment in Top Crypto Assets
While Bitcoin does indeed add a layer of pseudo-anonymity through cryptographic addresses, behaviors, and accounts connected to exchanges can piece together a trace back to the original owner.
While altcoins are indeed gaining popularity with dark web users, Bitcoin still reigns supreme in terms of overall usage.
What OPSEC? Crypto Users Are Sending Fund To The Dark Web Directly From Exchanges
Users are said to be sending BTC directly from exchanges that required KYC at registration, defeating the point of using the dark web at all. These types of transactions are highly traceable, as any exchange accounts with KYC are typically tied to a bank account or involved submitting identification at the time of signup.More than half of the Bitcoin sent to the dark web came directly from exchanges.
Government entities and law enforcement are becoming increasingly superior at tracing blockchain transactions, or are turning to companies like Bitfury’s Crystal and other blockchain analytics firms such as Chainalysis to assist with tracking crypto users.Related Reading | Australian Woman Accused of Laundering $5M in Bitcoin Through Unregistered Exchange
Even the in order to crack down on taxpayers not claiming their crypto earnings.Things get even more complicated for law enforcement, however, once the BTC makes it into the hands of better-prepared criminals. These vendors are then sending their received Bitcoin to mixers, to further hide any trace of their activity.
It’s only those who are sending BTC from exchanges that are at risk of having their Bitcoin transaction traced.
