US:A “vulnerability” is created every time criminals convert from cryptocurrency to government-issued ones, an official with U.S. Immigration and Customs Enforcement.
Matthew Allen, an assistant director of domestic operations with the Homeland Security Investigations (HSI) division of ICE, discussed the role of cryptocurrencies in drug trafficking during an October 3 hearing before the U.S. Senate Caucus on International Narcotics Control.
“On dark net marketplaces and other ‘unindexed’ websites, purchases are often paid for with cryptocurrencies such as bitcoin and monero, among many others,” he said in a prepared statement.
Perhaps most notably, he noted that HSI is having some level of success in tracking criminals who use cryptocurrencies to launder proceeds from drug sales.
While cryptocurrencies make transferring value relatively easy, he contended, criminals still need to convert cryptocurrencies into fiat – and vice versa – during the process. “Whenever monetary exchanges are made, a vulnerability is created,” he went on to say.
“This is the time when criminals are most susceptible to identification by law enforcement means and methods,” Allen stated, explaining: