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Bitcoin is Behind 95% of Cryptocurrency Crime; Analyst Reports

Even though there are more than 2000 cryptocurrencies including high privacy coins, most of the criminals prefer the most prominent cryptocurrency bitcoin for illegal activities. Multinational business magazine Fortune reported on April 24.

Co-founder and COO of Chainalysis, Jonathan Levin told sources, “Bitcoin is by far the favorite” and he shares the latest episode of “Balancing the Ledger.”

Chainalysis develops software that aids cryptocurrency firms and law enforcement trace the public ledger of transactions stored on 10 different blockchains. On Wednesday Chainalysis added four new cryptocurrencies which includes dollar-backed stablecoins such as Binance Coin, Tether, USD Coin and Gemini Dollar, and USD Coin.

According to Levin, Bitcoin which is currently trading at just below $5,500 is behind 95% of the cryptocurrency illegal cases and law enforcement investigations.

Report suggest that the same reasons that have made Bitcoin, the most prominent and widely used cryptocurrency, the top player of the market is criminals most opted cryptocurrency of choice. The cryptocurrency have the highest value in the market with highest transaction volumes when compared to other cryptocurrencies and it is easy to trade and spend.

In the recent months, many of the opioid busts in the U.S. arise from blockchain analysis, enabling authorities to trace illicit purchases of fentanyl and various other drugs paid for in cryptocurrency.

Levin adds.

“What we’ve seen is that there is the ability to tie some of those cryptocurrency transactions either to the pharmacies in China or to the services that people are using to distribute fentanyl, Homeland Security and the DEA have actually become really good at apprehending those people.”

There is one ongoing case that is dealt by Chainalysis, which they failed to crack successfully -QuadrigaCX. Earlier this year, the Canadian cryptocurrency exchange had lost access to $190 million worth of customer funds following the demise of its CEO. When the firm tried to track the money that was trapped in the wallets that only late CEO could access, it found out more alarming and threatening issue.

Levin further explained that the exchange didn’t actually have the customer’s funds. He opinionated that Quadriga exchange’s funds were not lost as media reported but those funds never existed.