The rise of cryptocurrencies has been linked with a range of criminal activities, particularly on the dark web. Photo/123RF.
The Federal Bureau of Investigation has 130 cases tied to cryptocurrencies, according to an agent speaking at a digital-asset industry conference in New York.
The cases "threat tagged" to virtual currencies encompass crimes such as human trafficking, illicit drug sales, kidnapping and ransomware attacks, according to Kyle Armstrong, a supervisory
special agent.
"There are thousands of cases in the bureau, so it is a small sliver at this point," Armstrong said at the Crypto Evolved conference Wednesday. The agency has noticed an increase in illegal activity facilitated by digital-currency payments, he added.
The opioid epidemic, in particular, has come into focus at the FBI as the "dark web" enables a surge in drug abuse. Illegal online marketplaces are where 10 per cent of global drug users make their purchases, said Armstrong, who is in charge of the FBI's virtual-currency initiative, which has been around for about three years.
The FBI has also seen a significant rise in extortion schemes related to virtual currencies on the southwest border of the US, Armstrong said.
