When the Justice Department announced in February that it had seized bitcoin worth $3.6 billion, it was more than just the largest recovery of alleged crime proceeds in U.S. history. It was the biggest signal yet that cryptocurrency, once seen as attractive to criminals for its supposed shield of anonymity, may not be so crime-friendly after all.
Just a few years ago, the federal government barely knew what to do with cryptocurrency. Now, most federal law enforcement agencies employ experts adept at tracing it. Investigators are using a new generation of sophisticated software that harnesses big data to link transactions to people, taking advantage of the fact that most cryptocurrency transactions are recorded in public ledgers that can never be erased.
Continue reading “Cryptocurrency is not actually perfectly designed for crime.”