Crypto Assets and Dark Web Crimes: 2020 Development Trend Analysis

Since the birth of Crypto Assets, they have often been associated by the public with the dark web, money laundering, and other cyber crimes due to their high secrecy and cross-border characteristics. In fact, the dark web is indeed one of the largest application scenarios for Crypto Assets.

In 2013, the dark web market "Silk Road", which was once referred to as the "dark version of e-commerce", was shut down by law enforcement. However, this did not stop the development of the dark web. On the contrary, new alternative markets continue to emerge, and the scale and number of dark web activities have shown逆势增长. Data shows that dark web market activities significantly increased in 2020 compared to 2019.

2020 Dark web criminal activities rampant

In April 2020, media reported that 530,000 Zoom account passwords were publicly sold on the dark web, involving several well-known institutions. The price for a single account was only 0.002 cents, totaling about 10 dollars. Investigations revealed that Zoom may have suffered a credential stuffing attack, where hackers used previously leaked account data for automated filtering and identification. This incident exposed Zoom's shortcomings in user data protection.

Crypto Assets Become the Main Medium of Dark Web Transactions

In traditional dark web transactions, cross-border capital flow has always been a key challenge. However, the emergence of Crypto Assets has changed this situation and greatly promoted the development of illegal transactions on the dark web. According to statistics, in 2019 alone, the trading volume of Bitcoin in the dark web market exceeded $1 billion. In addition to Bitcoin, other Crypto Assets such as Monero, Litecoin, and Zcash are also widely used in various illegal transactions.

In recent years, large-scale user data breaches have frequently occurred on the dark web, involving various fields such as social platforms, hotels, and student records. This data is often sold on the dark web using Crypto Assets as the medium of transaction. The popularity of Crypto Assets is mainly due to their decentralization, strong anonymity, and convenient transactions.

Challenges in Tracking Dark Web Crypto Assets Transactions

Different Crypto Assets have their advantages in dark web transactions: Bitcoin is widely used, Litecoin is cost-effective, Monero has stronger anonymity, and Dash employs mixing technology to enhance privacy.

Hackers commonly use money laundering methods by exchanging Crypto Assets for intermediate currencies such as online game currencies, and then converting them into fiat currency. They employ techniques such as diversion and delay to evade regulation. However, there remains a risk of detection during the final integration phase, as institutions such as exchanges periodically monitor suspicious transaction records.

Strengthening regulation is imperative in 2020

With dark web criminal activities becoming increasingly rampant, 2020 could become a year of decentralized crime explosion. Criminal activities are shifting to new platforms such as Telegram, and some criminal organizations are even bringing in Crypto Assets experts for consultation, posing a severe challenge to law enforcement and financial stability.

In response to the challenges posed by Crypto Assets, it is necessary to establish an appropriate regulatory system:

1. Use KYT( Know Your Transaction) technology to identify suspicious trading activities.

2. Strengthen cooperation among enterprises, regulatory agencies, law enforcement departments, exchanges, and other parties to share information and combat crime.

3. Carry out international cooperation and establish a borderless regulatory system.

4. Play the role of an intermediary for security companies, coordinating various forces to protect the ecosystem's safety.

The Duality of Dark Web Crimes

Regarding the rampant crimes on the dark web, pessimists believe that technology has become a tool for crime, while optimists think that we can learn from it and explore the positive applications of technology.

We should not ignore crimes related to Crypto Assets, but rather take an objective view of their potential risks and application prospects. In the future, close international cooperation and effective technology application will be key to achieving sound regulation. We must promote the healthy development of Crypto Assets while preventing them from becoming a breeding ground for illegal activities and disruptors of financial order.