The Challenges of Investigating Crypto Crime — Research Review
Dive into the enigmatic world of crypto crime investigations, uncovering the challenges faced by law enforcement in tracing the digital footsteps of the unseen.
Introduction
The research paper delves into the intricate challenges investigators face in the realm of cryptocurrencies and blockchain-related crimes. Authored by Simon Dyson, William J Buchanan, and Liam Bell from Edinburgh Napier University, this 2019 study provides an in-depth review of the complexities involved in tracing financial transactions within cryptocurrency, where privacy and anonymity often prevail.
Summary
This paper highlights the growing challenges law enforcement faces in detecting financial fraud and money laundering in cryptocurrency. It discusses how the semi-anonymous nature of cryptocurrencies presents substantial obstacles in tracing illegal financial activities. The study also covers methods used by criminals to obfuscate their financial activities, such as:
- Ring Signatures and Stealth Addresses: Boost transaction privacy by obscuring the sender’s identity among multiple users, making transactions hard to trace back to any individual. This mechanism strengthens privacy and security on the blockchain.
