The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities

Mariagrazia Sartori; Indra Seher; P. W.C. Prasad

doi:10.1007/978-3-031-29078-7_39

The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities

Mariagrazia Sartori
, Indra Seher
, P. W.C. Prasad

Computing, Mathematics and Engineering

Charles Sturt University
Canterbury Institute of Management

Research output: Book chapter/Published conference paper › Conference paper › peer-review

2 Citations (Scopus)

Abstract

Due to the anonymity of cryptocurrencies combined with enhanced privacy, criminals have been able to migrate their markets to the darknet. Thus, cryptocurrencies have altered the power balance between criminals, law enforcement, and regulators. Due to a lack of technical knowledge and resources, it is challenging for law enforcement to find, arrest, and effectively prosecute a darknet market vendor who trades from the other side of the world by anonymizing hops in multiple jurisdictions. Regulators are struggling to govern and develop guidelines meant to regulate cryptocurrency. To avoid being tracked by law enforcement, criminals turn to more private cryptocurrencies like Monero and Zcash. These cryptocurrencies use total anonymity and untraceable transactions, making them ideal darknet currencies. In the research of journal articles, various limitations such as investigators cannot access any off-chain transaction data, are identified and highlighted. Furthermore, criminals have identified many channels that can hide them from law enforcement and regulators. It is difficult to stop cryptocurrencies, and criminals will continue to improve their technology in order to adapt to the evolving privacy-enhanced cryptocurrencies. Taking full advantage of their anonymity and obfuscation features and being smart about choosing and using exchanges to clean up their dirty coins. This review adds to current knowledge by bringing together all stages of cryptocurrency crime to better understand the role of privacy-enhanced cryptocurrencies in illicit activities.

Original language	English
Title of host publication	Innovative Technologies in Intelligent Systems and Industrial Applications
Subtitle of host publication	CITISIA 2022
Editors	Subhas Chandra Mukhopadhyay, S.M. Namal Arosha Senanayake, P.W. Chandana Withana
Publisher	Springer
Pages	449-459
Number of pages	11
Volume	1029
ISBN (Electronic)	9783031290787
ISBN (Print)	9783031290770
DOIs	https://doi.org/10.1007/978-3-031-29078-7_39
Publication status	Published - 2023
Event	7th International Conference on Innovative Technologies in Intelligent Systems and Industrial Applications, (CITISIA 2022) - Virtual, Sydney, Australia Duration: 14 Nov 2022 → 16 Nov 2022 https://web.archive.org/web/20220723035937/https://www.citisia.org/ (Conference website) https://link.springer.com/book/10.1007/978-3-031-29078-7 (Proceedings)

Publication series

Name	Lecture Notes in Electrical Engineering
Volume	1029 LNEE
ISSN (Print)	1876-1100
ISSN (Electronic)	1876-1119

Conference

Conference	7th International Conference on Innovative Technologies in Intelligent Systems and Industrial Applications, (CITISIA 2022)
Country/Territory	Australia
City	Sydney
Period	14/11/22 → 16/11/22
Other	The “Conference on Innovative Technologies in Intelligent Systems & Industrial Applications” (CITISIA) is a conference that aims to provide researchers and industry experts with a platform for presenting their innovative projects and products. It is also a measure of recognition of academics’ professional and technical achievements – by industries and international organizations. This conference is designed to facilitate exchanges of ideas through communication, networking and learning from others, academics and young researchers in terms of greater collaboration. The conference provides a unique platform for industry professionals and researchers to share their experiences and insights through their latest research and to promote research and development activities among researchers. CITISIA 2022 provides an international forum for those actively involved in research to report on the latest innovations and developments, summarize state-of-the-art works, and share ideas and advances from all aspects of engineering, where advances play an increasing role in providing enriching experiences and improving the quality of lives.
Internet address	https://web.archive.org/web/20220723035937/https://www.citisia.org/ (Conference website) https://link.springer.com/book/10.1007/978-3-031-29078-7 (Proceedings)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals

Access to Document

10.1007/978-3-031-29078-7_39

Cite this

Sartori, M., Seher, I., & Prasad, P. W. C. (2023). The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities. In S. C. Mukhopadhyay, S. M. N. A. Senanayake, & P. W. C. Withana (Eds.), Innovative Technologies in Intelligent Systems and Industrial Applications: CITISIA 2022 (Vol. 1029, pp. 449-459). (Lecture Notes in Electrical Engineering; Vol. 1029 LNEE). Springer. https://doi.org/10.1007/978-3-031-29078-7_39

Sartori, Mariagrazia ; Seher, Indra ; Prasad, P. W.C. / The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities. Innovative Technologies in Intelligent Systems and Industrial Applications: CITISIA 2022. editor / Subhas Chandra Mukhopadhyay ; S.M. Namal Arosha Senanayake ; P.W. Chandana Withana. Vol. 1029 Springer, 2023. pp. 449-459 (Lecture Notes in Electrical Engineering).

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title = "The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities",

abstract = "Due to the anonymity of cryptocurrencies combined with enhanced privacy, criminals have been able to migrate their markets to the darknet. Thus, cryptocurrencies have altered the power balance between criminals, law enforcement, and regulators. Due to a lack of technical knowledge and resources, it is challenging for law enforcement to find, arrest, and effectively prosecute a darknet market vendor who trades from the other side of the world by anonymizing hops in multiple jurisdictions. Regulators are struggling to govern and develop guidelines meant to regulate cryptocurrency. To avoid being tracked by law enforcement, criminals turn to more private cryptocurrencies like Monero and Zcash. These cryptocurrencies use total anonymity and untraceable transactions, making them ideal darknet currencies. In the research of journal articles, various limitations such as investigators cannot access any off-chain transaction data, are identified and highlighted. Furthermore, criminals have identified many channels that can hide them from law enforcement and regulators. It is difficult to stop cryptocurrencies, and criminals will continue to improve their technology in order to adapt to the evolving privacy-enhanced cryptocurrencies. Taking full advantage of their anonymity and obfuscation features and being smart about choosing and using exchanges to clean up their dirty coins. This review adds to current knowledge by bringing together all stages of cryptocurrency crime to better understand the role of privacy-enhanced cryptocurrencies in illicit activities.",

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Sartori, M, Seher, I & Prasad, PWC 2023, The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities. in SC Mukhopadhyay, SMNA Senanayake & PWC Withana (eds), Innovative Technologies in Intelligent Systems and Industrial Applications: CITISIA 2022. vol. 1029, Lecture Notes in Electrical Engineering, vol. 1029 LNEE, Springer, pp. 449-459, 7th International Conference on Innovative Technologies in Intelligent Systems and Industrial Applications, (CITISIA 2022), Sydney, New South Wales, Australia, 14/11/22. https://doi.org/10.1007/978-3-031-29078-7_39

The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities. / Sartori, Mariagrazia; Seher, Indra; Prasad, P. W.C.
Innovative Technologies in Intelligent Systems and Industrial Applications: CITISIA 2022. ed. / Subhas Chandra Mukhopadhyay; S.M. Namal Arosha Senanayake; P.W. Chandana Withana. Vol. 1029 Springer, 2023. p. 449-459 (Lecture Notes in Electrical Engineering; Vol. 1029 LNEE).

Research output: Book chapter/Published conference paper › Conference paper › peer-review

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T1 - The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities

AU - Sartori, Mariagrazia

AU - Seher, Indra

AU - Prasad, P. W.C.

N1 - Publisher Copyright: © The Author(s), under exclusive license to Springer Nature Switzerland AG 2023.

PY - 2023

Y1 - 2023

N2 - Due to the anonymity of cryptocurrencies combined with enhanced privacy, criminals have been able to migrate their markets to the darknet. Thus, cryptocurrencies have altered the power balance between criminals, law enforcement, and regulators. Due to a lack of technical knowledge and resources, it is challenging for law enforcement to find, arrest, and effectively prosecute a darknet market vendor who trades from the other side of the world by anonymizing hops in multiple jurisdictions. Regulators are struggling to govern and develop guidelines meant to regulate cryptocurrency. To avoid being tracked by law enforcement, criminals turn to more private cryptocurrencies like Monero and Zcash. These cryptocurrencies use total anonymity and untraceable transactions, making them ideal darknet currencies. In the research of journal articles, various limitations such as investigators cannot access any off-chain transaction data, are identified and highlighted. Furthermore, criminals have identified many channels that can hide them from law enforcement and regulators. It is difficult to stop cryptocurrencies, and criminals will continue to improve their technology in order to adapt to the evolving privacy-enhanced cryptocurrencies. Taking full advantage of their anonymity and obfuscation features and being smart about choosing and using exchanges to clean up their dirty coins. This review adds to current knowledge by bringing together all stages of cryptocurrency crime to better understand the role of privacy-enhanced cryptocurrencies in illicit activities.

AB - Due to the anonymity of cryptocurrencies combined with enhanced privacy, criminals have been able to migrate their markets to the darknet. Thus, cryptocurrencies have altered the power balance between criminals, law enforcement, and regulators. Due to a lack of technical knowledge and resources, it is challenging for law enforcement to find, arrest, and effectively prosecute a darknet market vendor who trades from the other side of the world by anonymizing hops in multiple jurisdictions. Regulators are struggling to govern and develop guidelines meant to regulate cryptocurrency. To avoid being tracked by law enforcement, criminals turn to more private cryptocurrencies like Monero and Zcash. These cryptocurrencies use total anonymity and untraceable transactions, making them ideal darknet currencies. In the research of journal articles, various limitations such as investigators cannot access any off-chain transaction data, are identified and highlighted. Furthermore, criminals have identified many channels that can hide them from law enforcement and regulators. It is difficult to stop cryptocurrencies, and criminals will continue to improve their technology in order to adapt to the evolving privacy-enhanced cryptocurrencies. Taking full advantage of their anonymity and obfuscation features and being smart about choosing and using exchanges to clean up their dirty coins. This review adds to current knowledge by bringing together all stages of cryptocurrency crime to better understand the role of privacy-enhanced cryptocurrencies in illicit activities.

KW - Cryptocurrency

KW - Cryptomarket

KW - Darknet

KW - Law enforcement

KW - Money laundering

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Sartori M, Seher I, Prasad PWC. The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities. In Mukhopadhyay SC, Senanayake SMNA, Withana PWC, editors, Innovative Technologies in Intelligent Systems and Industrial Applications: CITISIA 2022. Vol. 1029. Springer. 2023. p. 449-459. (Lecture Notes in Electrical Engineering). doi: 10.1007/978-3-031-29078-7_39

The illicit use of cryptocurrency on the darknet by cyber criminals to evade authorities

Abstract

Publication series

Conference

UN SDGs

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