August 6, 2020

CipherTrace Introduces Cryptocurrency Criminal Address Tracking Application

CipherTrace, an analytics solution provider, has launched a mobile application that allows it to determine if whether certain coins in the Bitcoin and Ethereum blockchains with criminal activity. This is written by CoinDesk.

According to company representatives, the applicationCipherTrace Scout uses existing tools, but provides more opportunities to identify, track and document criminal transactions in the field.

In particular, in the process of tracking addressesThe application identifies coins that could be used in illegal activities, including darknet purchases and ransomware attacks requiring ransom in cryptocurrencies.

As a CipherTrace analyst in the field explainedfinancial crime and legal compliance Julio Barragan, after a user enters a specific address, CipherTrace Scout generates a report, marking suspicious addresses as “high probability” of use by criminals.

“In fact, you can get ahead of the police in areas withhigh risk, finding allegedly “stained” coins. This data can then be shared with analysts who will very quickly determine the origin of the funds. ” - he said.

Casey Bon, High Tech Expertcrime instructor and National White Collar Crime Center instructor, where he teaches police agents how to use cryptocurrency transaction tracking tools, notes that the most popular solutions are Chainalysis and CipherTrace.

However, if Chainalysis technologies can be considered a kind of federal standard, then CipherTrace Scout uses a very popular visualization among law enforcement agencies.

“We can visualize transactions. I can track the path from A to B and then start creating a visual display of transactions, which is often understood more easily. " - says Casey Bon.

He also noted that the launch of CipherTrace Scout took place at a time when there was an increase in the use of cryptocurrencies in street crime - prostitution, drug sales and child pornography.

“Young drug dealers on the streets have technically become more savvy and started trading online using cryptocurrencies,” - added Bon.

Julio Barragan also noted that the increase in the use of cryptocurrencies in crime is also facilitated by the wider spread of bitcoin ATMs.

“It’s becoming very easy to acquire a crypt, and it is used in street crime,” - said an analyst at CipherTrace.

Recall, according to the August report of CipherTrace, from the beginning of 2019, cybercriminals stole $ 4.3 billion in cryptocurrencies.