Bitrace CEO Highlights New Types of Crypto Crimes
- The new crypto crimes like on-chain hacking and hash-based gambling exploit the blockchain vulnerabilities.
- There is a rise in crypto crimes and traditional criminals are also leveraging blockchain technology.
- The solutions highlighted include the use of AI, Big data-driven technology and self awareness.
Crypto Crimes Need Public-Private Cooperation for Crypto Security
The rise of upgraded versions of crypto crimes is a growing concern in the crypto space that necessitates deeper and new strategies to deal with these activities to protect blockchain technology from any type of vulnerabilities. The recent lecture of Isabel SHI, CEO of Bitrace, Hong Kong where she highlighted why cryptocurrencies are increasingly exploited by criminals and rising new trends in crypto crimes.
Types of New Crimes
In the lecture, Isabel highlighted various new types of crypto crimes such as On-chain hacking, where a criminal exploits the vulnerabilities in the blockchain contracts, and hash-based online gambling where a criminal uses cryptographic hash functions in gambling schemes on blockchain platforms. Further, she also highlighted how traditional criminals like Drug Mafias, Money launders, Terrorists, etc use cryptocurrencies due to their anonymity and decentralization.
Current Challenges and Law Enforcement Capabilities
SHI has highlighted some fundamental challenges faced by law enforcement agencies in dealing with the rising trends of crypto crimes. One of the primary issues is a high level of anonymity i.e. lack of KYC verification in crypto transactions, which isolates transactions from real identities. Further when anonymity is combined with decentralization creates a barrier for agencies to trace and recover stolen assets. This criminal activity has a sophisticated structure that includes tech teams, promotional agents, and downstream money laundering groups.
Preventive Measures and Future Trends
To tackle these challenges, she has suggested AI and big data-driven management systems that can enable more accurate and fast monitoring, tracing, and identification of doubtful transactions. SHI also provided practical advice for all crypto enthusiasts to protect themselves from crypto scams by being cautious of fake apps and links, safeguarding private keys, and staying informed about new scam tricks.
To conclude, the future of cryptocurrency depends on more advanced technological solutions and stronger cooperation between the public and private sectors. With concentrated efforts from both government and businesses, Blockchain Technology is poised to set an example in revolutionizing global financial ecosystem.
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