Cryptocurrency is a digital or virtual currency secured by cryptography, operating on a decentralised system using blockchain technology. A blockchain is a distributed ledger, ensuring transparent and secure transactions. There are over 9,000 different cryptocurrencies, each varying in technology, usage, and value.
Key features include decentralisation, digital nature, cryptographic security, and transparency with pseudonymous identities. Cryptocurrencies often have a limited supply, like Bitcoin’s 21 million capitalisation. Popular cryptocurrencies include Bitcoin (BTC), known for its digital money and store of value; Ethereum (ETH), notable for decentralised applications and smart contracts; Ripple (XRP), used for fast, cross-border financial transactions; and Litecoin (LTC), a faster, ‘lighter’ version of Bitcoin.
This diversity reflects the wide range of applications for blockchain technology, catering to different digital finance needs, from specific community focus and privacy emphasis to industry-specific solutions and experimental uses, making the cryptocurrency landscape dynamic and continuously evolving.
As with any financial system, cryptocurrencies are not immune to criminal activities. Our services aim to combat crimes in this space, which include:
Money Laundering: The anonymity of transactions can make cryptocurrencies attractive for laundering money. Criminals can obscure the source of illicit funds through a complex web of transactions.
Fraud and Scams: This category includes Ponzi schemes, fake ICOs (Initial Coin Offerings), and fraudulent investment platforms that promise high returns.
Hacking and Theft: Despite the security features of blockchain technology, cryptocurrency exchanges and wallets can be vulnerable to hacking, leading to the theft of funds.
Ransomware Attacks: Hackers can encrypt a victim’s data and demand payment in cryptocurrency for the decryption key. This form of cyberattack holds data hostage and can have severe consequences for individuals and businesses.
Tax Evasion: The perceived anonymity of crypto transactions can tempt individuals to hide assets from tax authorities.
Blackmail: In this context, criminals might acquire sensitive or private information about an individual or organization and demand payment in cryptocurrency to prevent its release or exposure.
Machine Ransom: Similar to ransomware, this involves hackers taking control of machines or systems (like IoT devices) and demanding cryptocurrency to relinquish control.
For further information or to discuss these matters in more detail, please contact us.