Crypto Assets and Dark Web Crimes: New Trends and Challenges in 2020

Since the birth of Crypto Assets, they have often been associated with the dark web, money laundering, and other cyber crimes due to their high level of secrecy and cross-border characteristics. It is undeniable that the dark web is indeed one of the largest application areas for Crypto Assets.

In 2013, the "Silk Road", known 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, the scale and number of dark web markets have shown a counter-trend growth. Data shows that dark web market activity doubled in 2020 compared to 2019.

In April 2020, 530,000 Zoom account passwords were publicly sold on the dark web, involving several well-known institutions. Each account was sold for only $0.002, totaling around $10. Analysis suggests that this was likely due to a credential stuffing attack. Hackers utilized previously leaked account information to identify accounts on Zoom one by one through automated programs, successfully obtaining a large amount of user private data.

In dark web transactions, Crypto Assets play an indispensable role. In the past year, Bitcoin alone has set a trading record of over 1 billion USD in the dark web market. In addition to Bitcoin, Crypto Assets such as Monero, Litecoin, Zcash, Dash, and Ethereum are also increasingly appearing in various illegal transactions.

The reason why Crypto Assets are favored by the dark web is mainly because they do not require the involvement of third-party institutions, allowing for convenient and highly anonymous transactions. Different Crypto Assets have their own characteristics: Litecoin is cheaper and faster, Monero has stronger privacy, and Dash uses mixing technology to enhance anonymity.

Tracking dark web Crypto Assets transactions presents many challenges. Hackers usually use digital currency exchange services to convert Crypto Assets into intermediate currencies such as online game currencies, and then exchange them for fiat currency. They also employ techniques such as splitting and mixing coins to conceal the flow of funds.

In the face of the increasingly severe situation in 2020, experts predict that this will be the year of decentralized crime. Criminal activities may shift to new decentralized platforms such as Telegram, and the methods will become more complex. To address these challenges, a comprehensive regulatory system needs to be established:

1. Use KYT( Know Your Transaction) function to identify suspicious transactions.
2. Strengthen cooperation between enterprises, regulatory agencies, law enforcement departments, and exchanges.
3. Promote international cooperation and establish a borderless regulatory system.
4. Play the role of an intermediary for security companies to facilitate information sharing.

Although dark web crimes pose many challenges, we cannot ignore their technological innovation aspect. In the future, we need to effectively utilize technological means based on close international cooperation to ensure the healthy development of Crypto Assets while preventing them from becoming a breeding ground for illegal activities and a disruptor of financial order.