Europol, the law enforcement agency of the European Union (EU), has warned that the virtual currencies Zcash, Monero, and Ethereum are increasingly
being used in the digital underground market. The agency,
however, reiterated that the leading cryptocurrency Bitcoin is still the
preferred currency in cybercrime.
In its 2017 Internet Organised Crime Threat Assessment (IOCTA) report, Europol stated that the darknet landscape is rapidly evolving. The agency concluded that Monero
is fast gaining darkweb popularity because of its “additional security
and privacy features” making it one of the easy cryptocurrency choices
for criminals.
Part of the report reads:
“Cryptocurrencies continue to be exploited by cybercriminals, with Bitcoin being the currency of choice in criminal markets, and as payment for cyber-related extor on a empts, such as from ransomware or a DDoS attack. However, other cryptocurrencies such as Monero, Ethereum and Zcash are gaining popularity within the digital underground”.
The report further detailed the main reason why cryptocurrencies are becoming a favorite among criminals:
"Transactions cannot be attributed to any particular user/address, all coins used in a transaction are 'hidden' by default, and transaction histories are kept private."
Other highlights of the IOCTA report
In its report, Interpol focuses on the popularity of
digital currencies on darknet marketplaces. As an example, it cites the
case of a Monero-focused ransomware called Kirk that was launched in early 2017.
In the case of Ethereum, the report claimed that smart
contracts based on the cryptocurrency could be utilized to legalize
payments between crime service providers. It also presented a case of a
proposed decentralized darknet market that is designed to operate on the
Ethereum Blockchain.
Meanwhile, the document clarified that Zcash
is yet to be the subject of a law enforcement investigation. However,
the virtual currency is reportedly being eyed by darknet marketplaces
due to its privacy features, which hide both the transaction recipient
and the transaction amount.
The case of AlphaBay
The biggest darknet market AlphaBay was shuttered by Europol in early 2017. The closure was part of a globally coordinated crackdown on underground markets. However, prior to its shutdown, AlphaBay had already added Ethereum and Monero as payment options, and previously had plans to include Zcash.
