Cryptocurrencies are considered as the future of digital currency. It basically changes the traditional financial transactions into digital. There are a number of reports about the cryptocurrency is being used for funding illegal activities. In this article, we will discuss the possibility of cryptocurrency being traced.
There are several reports on the Bitcoin blockchain about the illegal activities in between the year of 2013 and 2016. These reports are obtained by the studies which are conducted by various blockchain analysis firms. The various kinds of illegal activities include malware and ransomware attackers, dark web black market and Ponzi schemes. Cryptocurrencies can be traced, as the studies conducted that more than 95% of the cryptocurrencies came from several dark web black markets.
These black markets include AlphaBay, Silk Road, Agora and Silk Road 2.0. In order to trace cryptocurrencies, we need to closely examine the blockchain activity. This will help us to find out the exact account which is being used for laundering cryptocurrencies, this particular process is known as clustering. There are various firms working on tracing cryptocurrencies and providing a software solution. They basically record all the information regarding the transactions to the blockchain which will initially disclose the addresses.
Even law enforcement is also using various tools and organizations, in order to trace criminal activities happening on blockchain networks. Recently a hacking attempt was done in the year of 2018 which was $60 million taken from a company named Zaif Exchange. As a result, more than 6,000 Bitcoins were stolen from the account. Using the analysis tool, the engineering team has traced that around 30% of the Bitcoin was in a particular address which is the account of the hacker.
24% were sent to a particular exchange for the withdrawal of the money. And the rest of 46% was divided into several small amounts and transferred to different addresses. It is much important to determine the exact time of the unauthorized access to your account, which will be much easier to trace the illegal activities. There is also crypto crime happening in the offline world, where the victims are forced to deliver the account details of their cryptocurrencies.
Recently the collaboration with law enforcement and blockchain analytics firm, they have introduced QR code for each crypto wallet. This helps to trace the transactions which could arouse suspicion. It is much advised to gain complete knowledge regarding cryptocurrencies before investing and using transaction procedures.
Even after the complete surveillance of cybersecurity, there is still a number of illegal activities being increased related to cryptocurrency transactions. Even after the complete tracing of cryptocurrency theft, not many actions can be taken against them in the real world.
Investors are always concerned about cryptocurrencies being stolen, or account being hacked. We have collected complete information regarding the tracing procedure of cryptocurrencies from different sources and posted them in this article for you. Share this useful article with others so that they get to know about the safety procedures being taken in order to trace stolen cryptocurrencies.