BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Bitcoin

Europol Cautions That Criminals Will Exploit Bitcoin Mining, Layer-2 Solutions

by Dan K
Jun 11, 2024 - 4:01 pm
in Bitcoin
Europol Mining Headquarters in The Hague, The Netherlands

Europol has warned of the threat of criminal exploitation in bitcoin mining and layer-2 solutions. What Europol Thinks on Crypto Mining
Europol reported how the European police body is tackling the abuse of Bitcoin mining by organized criminals. Crypto mining is seen as the method of choice for money laundering ill-gotten gains by criminals. Europol said in the 40-page report about cryptographic encryption, based in The Hague, on how such operations could conceal illegal proceeds. Some of the mining pools attract fraudsters or ransomware operators.

Specific Cases of Mining Crypto Exploitation


Europol cites cases in which pools are used to promote Ponzi schemes. The most blatant case was that of the BitClub Network; in this case, it claimed, falsely, to afford to earn promises through pool mining. This cost hundreds of millions of euros, having a substantial financial impact.

Layer 2 Solutions

Law Enforcer’s Next Headache Other than the cryptocurrencies used for crypto mining, the rest of the business has evoked further worries from Europol. For instance, the agency pointed out that layer-2 applications and zero-knowledge proofs on the blockchain represent the significant challenges in the company in terms of tracing. Indeed, most such technologies are also adopted in the very quest to scale and offer privacy, which for law enforcement investigations might mean almost the opposite if it is complicated to track ill-gotten transactions.

SLIP39

Disadvantage of the SLIP39 standard It also discussed the issues with the SLIP39 standard, also called the Shamir Backup standard, built into hardware crypto wallets. It makes room for the slicing of the recovery seed into parts, thereby practically making it next to impossible for the law enforcement agent to recover a criminal’s wallet. Each share is built of 20 words and needs a user-configured number of shares to heal, so the level of hassle went up even more.

Conclusion

The Europol report has stressed that changes in the crypto space must be monitored well and that technologies at the cutting edge have to be adequately taken care of. What especially worries the agency is the dual use of these technologies: on the one hand, innovations bear benefits, but on the other hand, crimes can be committed by using them. The strategies and tools for law enforcement will need to grow in pace with these new forms of crime in a crypto industry that never stops expanding and innovating.

Tags: BitcoinMiningBlockchainEurope
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Green Minerals headquarters and Bitcoin symbol representing strategic investment deal

Bitcoin Inflows From 2024-2025 Break 15-Year Record, Hitting $625B

September 15, 2025

Bitcoin on-chain inflows reached $625B in 1.5 years, outpacing 15 years of growth. Institutional demand and Fed policy...

Wall Street financial district with Bitcoin symbol representing institutional adoption

Wall Street Veteran Jordi Visser Predicts Big Bitcoin Allocation Boost by Year-End

September 14, 2025

Jordi Visser forecasts US institutions will increase Bitcoin allocations before year-end, boosting Q4 demand and setting up portfolios...

China Renaissance invests $100M in BNB through MoU with YZi Labs

China Renaissance Commits $100M to BNB in Landmark Treasury Move

August 22, 2025

China Renaissance invests $100M in BNB, signing MoU with YZi Labs to push adoption and regulated listings in...

BlackRock CEO Larry Fink speaking at the World Economic Forum

Bitcoin’s biggest Wall Street backer takes the wheel at World Economic Forum

August 15, 2025

BlackRock CEO Larry Fink joins André Hoffmann as interim co-chair of the WEF board, signaling stronger ties between...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service