Traffickers of people exploit digital currencies

Tulsa, Okla (Ktul) – As digital currencies gain popularity, they have also become tools for traffickers, according to experts in preventing financial crime. While digital currencies provide financial freedom and innovation, they also present challenges for the law, which now works to track those who exploit cryptocurrency for illicit activities.

Experts say Blockchain analysis is a powerful tool in combating human trafficking. Blockchain, the technology underlying cryptocurrencies such as Bitcoin, is a decentralized digital register that records transactions on multiple computers. Each transaction is stored in a block and, once verified, becomes part of a permanent chain that cannot be modified.

“The blockchain analysis tools that exist, the companies that are there, such as the chain analysis, elliptical, TRM, these are the big players in this game,” said Erin O’Loughlin, an expert in financial crime. “Get a license to be able to enter their software capacity and when you go hunting.”

These tools analyze the publicly available blockchain data to signal the irregular activity, such as rapid funds between accounts, use of known illicit wallets or transactions that match traffic models. However, traffickers have found ways to make it difficult to detect.

“A mixer or a tumbler, these are the ways to get funds and say,” Hey, I don’t want anyone to know what I’m doing now. ” And these are very controversial, “said O’Loughlin.” A lot of confidentiality supporters, fans like. Obviously, according to us, we don’t like that, because it just shows that you are trying to wash money. “

These services group cryptocurrency for several users, mix the funds and redistribute them to new addresses, breaking the connection between the sender and the receiver. To counteract these challenges, regulatory measures such as the travel rule require cryptocurrency exchanges to share the details of the transaction for amounts of over 1,000 USD when moving funds between institutions.

Information sharing programs, such as program 314 (B), allow financial institutions, law enforcement and regulatory agencies to collaborate in pursuing suspicious transactions.

Despite the progress at the federal level, local law enforcement are facing road blockages in accessing financial data, as a large part requires federal authorization.

Kevin Metcalf, the director of trafficking in persons under Prosecutor General Drummond, stressed that this is not just a distant problem.

“This is very, very important. Trafficking in people is not like any other crime here. It happens in front of us. It happens right outdoors,” said Metcalf. “It’s like work traffic. What does this look like? Looks like people go to work. When driving, you see people go to work. You don’t know what’s going on behind the scenes.”

As cryptocurrency continue to evolve, as well as the methods used to combat human trafficking. Experts say that providing local law application with the right tools and resources will be critical to move on.

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