Experts claim that the rise in bitcoin prices and the media's close attention to the launch of cryptocurrency ETFs have exacerbated the prevalence of cases of investment fraud. At the same time, the flagship cryptocurrency has become the most frequently mentioned product offered in fraudulent investment schemes. In particular, due to the fact that people with insufficient investment experience do not fully understand the specifics of investing in digital assets, writes Europol.
"Companies issuing bitcoin ETFs will have to keep significant reserves in cryptocurrency, which makes them valuable targets for various types of scammers," comments Europol.
The report highlights the increased use of bitcoins as an initial resource for exchanging cryptocurrencies in order to subsequently conceal criminal proceeds. For example, Europol separately emphasized the exchange of bitcoins paired with Monero and other confidential coins declaring the principles of modus operandi.
Europol states that international criminal groups are actively exploiting the opportunities of the digital finance industry, including bitcoin, which creates objective problems for legitimate law enforcement access to criminal communications. Of particular concern to EU law enforcement agencies is Web3's emphasis on decentralization, which will lead to the emergence of new ways of criminal interaction, and these methods "will neither be controlled nor regulated by governments or private companies."
A recent study by Elliptic, an analytical company, showed that cryptocurrency fraud in Southeast Asia has reached industrial proportions and led holders of digital assets to losses of tens of billions of dollars.