Police services around the world are sounding the alarm as they are recording a huge number of Bitcoin scams. The first cryptocurrency is extremely popular among criminals. Unfortunately, this is the flip side of global fame. Be careful when dealing with BTC.
Experts believe that the rise in Bitcoin prices and the increased attention to the launch of cryptocurrency ETFs have done a disservice to the first cryptocurrency. As a result, cases of investment fraud have increased. Consequently, the flagship cryptocurrency has become the most frequently mentioned product in fraudulent investment schemes. Experts at Europol believe that inexperienced investors need to fully understand the peculiarities of investing in digital assets.
"Companies issuing cryptocurrency ETFs will also have to hold large reserves in cryptocurrency, which might make them valuable targets for fraudsters," Europol noted.
The organization's report highlights the extensive use of Bitcoin to conceal criminal proceeds. An example of such fraud is the exchange of BTC paired with Monero and other privacy coins, which declare principles of modus operandi.
Europol officials note that international criminal groups are actively exploiting the opportunities of the digital asset industry, primarily BTC. This creates problems for lawful access by law enforcement agencies to criminal communications. At the same time, EU law enforcement agencies fear that the Web3 technology's shift towards decentralization will lead to new ways of criminal interaction. In such a scenario, control by the government or private companies will be challenging, the agency warns.
According to research by analytical company Elliptic, cryptocurrency scams in Southeast Asia have reached unprecedented levels. As a result, digital asset holders have lost billions of dollars, the company concludes.
