Europol says Bitcoin remains the main choice of criminals.

Even with the rise of privacy coins like Monero, Bitcoin remains the most used cryptocurrency by criminals.

According to the recent Europol Internet Organized Crime Risk Assessment report, financial crimes are still the main illegal use of crypto.

Bitcoin's popularity among criminals is a concern

Compared to alternatives like Monero (XMR), Bitcoin is the preferred asset for ransomware groups due to its accessibility to unsophisticated users. Despite this, criminals, especially when involved in investment fraud, convert bitcoins into stablecoins to avoid market volatility.

According to the report, the rising value of cryptos and media attention has led to an increase in fraudulent investment schemes. Cryptocurrencies, particularly the US dollar-pegged stablecoin Tether (USDT) on the Tron (TRX) network, are frequently reported in such schemes, likely due to the network's low transaction fees.

Additionally, the use of altcoins in illegal activities has increased, with clandestine banking and crypto debit cards gaining popularity as automated teller machines (ATMs) for fast conversion into cash.

There is also a growing trend of using encrypted messaging apps for money-to-crypto exchanges, allowing criminals to bypass compliance checks and hide their identity.

Meanwhile, Europol is concerned that the approval of spot Bitcoin ETFs could open up new avenues for fraudsters. What's more, the companies that issue these ETFs hold significant amounts of crypto, making them an attractive target for fraudsters.

Monroe is gaining popularity among criminals.

While Bitcoin remains the crypto of choice for ransomware groups, a Europol report highlights the increasing use of Monero (XMR) as an alternative. Monero's privacy features make it a good choice for criminals who want to hide their money.

In January 2024, a significant crypto-jacking operation was discovered in Ukraine. The operation smuggled more than 1.8 million euros ($1.95 million) worth of cryptos. Although the program is mainly focused on mining Monero, it also includes Ethereum (ETH) and Toncoin (TON).

The report emphasizes that the decentralization of the Web3, blockchain technology and peer-to-peer (P2P) networks create favorable conditions for cybercrime. These technologies allow transactions to take place anonymously and beyond the reach of authorities. Europol warns that as these decentralized systems continue to evolve, they will further facilitate the activities of cybercriminals.

Europol cited the challenges law enforcement faces in tracking and prosecuting such activities, particularly when virtual resources service providers are non-compliant and based offshore. This is because privacy laws, particularly those relating to end-to-end encryption (E2EE) communication platforms, prevent law enforcement agencies from using any criminal communications.