Bitcoin has remained the most used cryptocurrency by criminals, even with the rise of privacy coins like Monero.

According to the recent Europol Internet Organized Crime Threat Assessment report, financial crimes are also still the main illicit crypto use.

Bitcoin’s Popularity with Criminals Sparks Concerns

Bitcoin has been the preferred asset for ransomware groups due to its accessibility for non-savvy users compared to alternatives like Monero (XMR). Despite this, criminals often convert Bitcoin to stablecoins to avoid market volatility, particularly when obtained through investment fraud.

According to the report, the increasing prices of cryptos and media attention have led to a surge in fraudulent investment schemes. Cryptocurrencies, particularly the U.S. dollar-pegged stablecoin Tether (USDT) on the Tron (TRX) network, are frequently reported in such schemes, likely due to the network’s low transaction fees.

In addition, altcoin use in illicit activities has surged, with underground banking and crypto debit cards gaining popularity for quick conversion to cash at automated teller machines (ATMs).

There’s also a growing trend of using encrypted messaging apps for cash-to-crypto exchanges, allowing criminals to bypass compliance checks and conceal their identities.

Meanwhile, Europol expressed concerns about the approval of spot Bitcoin ETFs, saying they could open new avenues for scammers. Moreover, companies issuing these ETFs hold significant crypto reserves, making them attractive targets for fraudsters.

Monero is Gaining Traction Among Criminals

While Bitcoin remains the preferred crypto for ransomware groups, Europol’s report highlights the rising use of Monero (XMR) as an alternative. Monero’s privacy features make it an optimal choice for criminals looking to conceal their funds.

In January 2024, a significant crypto-jacking operation was uncovered in Ukraine. The operation had covertly mined over €1.8 million ($1.95 million) worth of cryptos. While the scheme primarily focused on mining Monero, it also included Ethereum (ETH) and Toncoin (TON).

The report emphasized that the decentralization inherent in Web3, blockchain technology, and peer-to-peer (P2P) networks creates environments conducive to cybercrime. These technologies enable transactions to be conducted anonymously and beyond the reach of authorities. Europol warned that as these decentralized systems continue to evolve, they will increasingly facilitate cybercriminal activities.

Europol noted law enforcement’s challenges in tracking and prosecuting such activities, especially when virtual asset service providers are non-compliant and offshore-based. This is due to privacy laws, especially concerning end-to-end encryption (E2EE) communication platforms, which prevent law enforcement agencies from accessing any criminal communications.