Europol Warns of Increasing Sophistication in Criminal Use of Cryptocurrencies

Europol has raised concerns over the growing sophistication of criminal activities involving digital assets. The agency, in collaboration with the Basel Institute on Governance and the United Nations Office on Drugs and Crime (UNODC), highlighted the misuse of cryptocurrencies during a recent conference. "Investigating these crimes places a significant burden on law enforcement," said Europol's representative, emphasizing the need for continued investment in international investigations.

The event focused on the evolution of blockchain technology and its exploitation by criminals. Chainalysis reported illicit crypto addresses received $40.9 billion in 2024, though this figure represents only a fraction of total financial crime proceeds. Traditional crimes like drug trafficking, where crypto is increasingly used for payments, were not included in the tally.

Europol has already dismantled several major criminal networks this year, including a Latvian cybercrime operation laundering over $330,000 through digital assets. Another operation targeted a hawala banking network using cryptocurrencies for money laundering.