- Misuse of cryptocurrency and blockchain for crime is becoming more sophisticated, increasing pressure on European police forces.
- Illicit crypto activity accounted for an estimated $40.9 billion in 2024, excluding crypto used as a payment method in traditional crimes.
- Law enforcement agencies disrupted major crypto-related crime operations that laundered millions and defrauded thousands of victims.
- Cross-border cooperation and standardized blockchain analysis methods remain significant challenges for investigations.
- Experts emphasize the need for unbiased blockchain training and agreed standards to improve collaboration and crime tracing.
The head of Europol’s European Financial and Economic Crime Centre, Burkhard Mühl, announced this week that criminal use of cryptocurrency and blockchain technology is growing more complex. Europol pledged ongoing support to assist member states in tackling these crimes, which place a heavy burden on police forces across Europe.
According to Chainalysis, illicit cryptocurrency addresses received approximately $40.9 billion in 2024, based on a report released in January. This figure excludes traditional crimes like drug trafficking where crypto serves mainly as a payment or laundering tool. Europol coordinated several significant law enforcement actions this year, including shutting down a cybercrime network in Latvia that laundered over $330,000, a covert hawala banking system laundering more than $23 million, and a fraudulent crypto investment ring that took nearly $540 million from 5,000 victims.
Europe has also experienced physical attacks on cryptocurrency holders, known as wrench attacks, where victims are forced to reveal private keys. France alone reported 16 such incidents this year, according to a record of “Known Physical Bitcoin Attacks” maintained by Jameson Lopp. These crimes highlight difficulties in cross-border enforcement, as perpetrators often operate internationally.
Experts report that inconsistent results from different blockchain analytics firms complicate investigations. Diana Pătruț, project manager at the Blockchain Intelligence Professionals Association, explained that the lack of standardized methods for transaction tracing and wallet identification obstructs international cooperation. She stressed the need for public and private sectors to collaborate in creating and adopting common standards.
Pătruț also identified training as an area needing improvement. She pointed out that most blockchain intelligence education relies on private sector tools, introducing bias and limiting a full understanding of the technology. Developing investigators’ own assessment skills and focusing on open-source tools are critical to closing a skills gap in cryptocurrency crime detection.
Lastly, Pătruț cautioned against oversimplifying what counts as crypto-related crime, noting the absence of universally accepted definitions. She recommended viewing financial crime broadly while recognizing the growing role of crypto assets as stablecoins and tokenized assets enter mainstream finance.
For more detailed information on the scale of crypto crime, see the Chainalysis 2025 Crypto Crime Report. Data on physical attacks is available in the record of Known Physical Bitcoin Attacks.
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