On-chain hacking and hash-based wagering are examples of blockchain vulnerabilities that are exploited by new crypto crimes.
A developing concern in the crypto space is the emergence of enhanced versions of crypto crimes, which requires the development of new and more sophisticated strategies to address these activities and safeguard blockchain technology from any potential vulnerabilities. The recent lecture of Isabel SHI, CEO of Bitrace, Hong Kong, in which she emphasized the reasons for the increasing exploitation of cryptocurrencies by criminals and the emergence of new trends in crypto crimes.
In the lecture, Isabel emphasized a variety of novel forms of cryptocurrency crime, including on-chain hacking, which involves a criminal exploiting the vulnerabilities in blockchain contracts, and hash-based online gambling, which involves the use of cryptographic hash functions in gambling operations on blockchain platforms. She also emphasized the use of cryptocurrencies by traditional criminals, such as drug mafias, money launderers, and terrorists, as a result of their anonymity and decentralization.
SHI has identified several fundamental obstacles that law enforcement agencies encounter when confronted with the increasing prevalence of crypto crimes. One of the primary concerns is the high level of anonymity, which is a result of the absence of KYC verification in crypto transactions. This isolation of transactions from real identities is a significant issue. Furthermore, the combination of anonymity and decentralization can impede the ability of agencies to locate and retrieve misappropriated assets. This illicit activity is characterized by a sophisticated structure that encompasses downstream money laundering groups, promotional agents, and technology teams.
She has proposed the implementation of AI and big data-driven management systems to address these challenges. These systems can facilitate the more precise and rapid monitoring, tracing, and identification of suspicious transactions.. SHI also offered practical advice to all crypto devotees on how to safeguard themselves from crypto scams, including being vigilant about fake apps and links, preserving private keys, and staying informed about new scam tactics.
In summary, the future of cryptocurrency is contingent upon the development of more sophisticated technological solutions and the enhancement of collaboration between the public and private sectors. Blockchain Technology is on the brink of revolutionizing the global financial ecosystem as a result of the concerted efforts of both the government and enterprises.
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