Cryptocurrency money laundering is a complex business, as criminals are seeking to obfuscate the origin of their proceeds. To do this, they use a number of methods including mixing services and exchanges that offer higher levels of anonymity. This study aims to shed light on how these laundering services operate, specifically those on the Dark Web. It also examines the impact that these services have on crime in cyberspace and looks at how they could be disrupted.
Mixing services, often called tumblers, allow users to mash up their own cryptocurrency with that of others before sending it on to their chosen destination. This obfuscates the transaction’s digital signatures and prevents law enforcement from linking it to a specific crime. These services typically charge between one to three percent of the value of the mixed cryptocurrency as a fee for their services. This method is particularly popular with people who want to sell their cryptocurrency. It’s a common way for them to get the most money for their investment, and it also helps criminals hide their profits.
Laundering services are a key part of the broader cryptocurrency ecosystem and have been used by a wide range of criminals. In particular, they are a favorite tool for obfuscating funds obtained through ransomware and theft. They’re also used by gambling and gaming platforms that accept cryptocurrencies, as the proceeds can be laundered into credit or virtual chips that can then be cashed out after a few transactions on the website.
One of the most popular laundering services on the Dark Web is a Bitcoin mixer named RenBridge. The service helped launder over $267 million in stolen crypto assets from exchanges and DeFi services in the past two years, according to cybersecurity firm Elliptic. The most prevalent crimes the service helped launder were theft, hacking, and fraud, with nearly half of all ill-gotten gains originating from theft alone.
In order to avoid being caught, launderers must create a strong cash-out strategy. They must ensure that their cryptocurrency is deposited into an exchange that offers high anonymity, a low risk of detection, and easy access to fiat currencies. Ideally, the exchange will also accept prepaid cards that can then be redeemed for cash or handed over to third parties.
As a result, the 비트코인세탁 Dark Web has become home to a plethora of specialised bitcoin laundering services, which help criminals avoid being caught by offering services that include high anonymity, low risk of detection, and easy access to regulated fiat currencies. This study examined five mixing and exchange services to see how reliable they were as a combined solution for laundering cryptocrime proceeds. In addition, the authors looked at how these services were connected to other services that facilitate cyber crime and explored how they might be disrupted using cross-chain bridges, a method of transferring tokens between chains. Nyman Gibson Miralis specialises in digital currency, crypto, cybercrime, and money laundering law. To find out more about our expertise in this area, contact us today.