Financial safety

US Homeland Security: Cryptocurrencies Traceable When Converted to Cash

The US Department of Homeland Security considers cryptocurrency to be easily traceable when converting to fiat currencies.

In a recent testimony by the US Department of Homeland Security’s Immigration and Customs Enforcement (ICE) before the US Senate Caucus on Narcotics Control, cryptocurrencies are occasionally used to purchase illicit drugs such as illegal opioids:


“Generally, illicit opioids that are purchased on the “indexed” internet are paid for through licensed mainstream MSBs. On dark net marketplaces and other “unindexed” websites, purchases are often paid for with cryptocurrencies such as Bitcoin or Monero, among many others.”

The report mentions that cryptocurrencies are, in fact, not generally convenient for criminal activity due to their ability to be traced. In particular, their propensity to be exchanged for fiat currencies was singled out as their traceability attack vector:

“Despite the pseudo-anonymity and ease of transfer exploited by the users of Bitcoin and other virtual currencies, criminals still need to convert their cash into virtual currency or their virtual currency into cash. Whenever monetary exchanges are made, a vulnerability is created. This is the time when criminals are most susceptible to identification by law enforcement means and methods.”