Europol Warns of Advanced Crypto Crimes, Calls for Global Standards and Stronger Cross-Border Eff...

Europol confirms crypto-related crimes are becoming more complex.

Investigations face challenges due to inconsistent blockchain analytics and the absence of training across countries.

Physical attacks targeting cryptocurrency holders and large-scale fraud cases indicate a rising threat.

The European Union’s law enforcement agency Europol has reported a rise in the complexity of crypto-related crimes, placing growing pressure on national police forces. During the 9th Global Conference on Criminal Finances and Crypto Assets, the speakers pointed out the necessity of better global collaboration, uniformity in blockchain analysis tools, and non-partisan training programs. This two-day event from October 28 to 29 saw the cooperation of Europol, the UN Office on Drugs and Crime, and the Basel Institute on Governance, who were all there to analyze the transformation of the crypto crime financial market.

Growing Strain on Police Resources

Burkhard Mühl, who is the head of the European Financial and Economic Crime Center (EFECC) at Europol, said that dealing with crimes involving blockchains poses a lot of challenges for legal authorities. He assured that Europol will continue to dedicate resources to the activities that help the member countries in dealing with complicated investigations. Although the misuse of crypto is quite small in total financial crime, Mühl pointed out that the level of skill performed in these activities is continuously increasing.

Among the recent coordinated actions, Europol disbanded a cybercrime gang in Latvia that laundered $330,000+ with the help of crypto. A different operation has gone ahead and paralyzed a network working in the hawala style that was transferring $23 million via digital currencies. On top of that, policemen discovered a scam regarding crypto investment that tricked 5,000 victims out of a total of almost $540 million. These scenarios demonstrate how virtual assets are employed in the process of committing fraud, washing money, and hiding the crime.

Surge in Physical Attacks Linked to Crypto

France reported 16 violent incidents this year involving physical attacks on crypto holders, known as “wrench attacks.” In these cases, criminals used force to obtain private wallet keys. These crimes underscore the growing safety risks associated with individuals holding digital assets.

Raluca Pătruț, a representative at the conference, stated that inconsistent methods across blockchain analytics platforms make investigations more challenging. Investigators have found that tracing results often vary between tools due to a lack of standardized practices. Wallet attribution, training materials, and data formats also differ, complicating joint investigations across countries.

Training and Skills Gap Remains a Major Issue

Pătruț noted that blockchain training is driven mainly by commercial companies, creating potential bias in investigative approaches. She highlighted the importance of developing independent skills in utilizing open-source blockchain tools. Officials observed that there is no universally accepted definition of what crypto crime really is

The absence of unambiguous standards makes it harder to draw parallels between crypto and traditional financial crimes. The authorities pointed out such a ‘crypto crime’ setting up the courts, and managing the practice of crypto-related crimes in that wider financial crime paradigm. Europol has pointed out that as crypto assets continue to gain ground in the financial markets, the crime-prevention measures will have to be proportionate to the changing nature of risks.