Cellebrite Launches Crypto Tracer Solution Powered by CipherTrace for Tracking Illicit Activities Involving Cryptocurrency and Blockchain
Cellebrite, a digital intelligence firm has released a cryptocurrency transaction tracing tool called “Cellebrite Crypto Tracer,” which would help law enforcement agencies, businesses, and analysts to trace crypto transactions being used for any illicit activity such as money laundering, terrorism, drugs, human trafficking, weapon sales, and ransomware schemes.
The firm has promised to offer its crypto transaction tracing toolkit to investigators, along with analysts and even those who want to lawfully use the toolkit to obtain evidence of any kind of criminal activity being carried out using cryptocurrencies.
As per a study conducted by Oxford University, over $76 billion in Bitcoin is being used to facilitate illegal activities. The use of digital assets, especially Bitcoin and privacy-centric coins, has been a significant hurdle for law enforcement agencies and remains one of the prominent reasons governments have a passive stance towards regulating cryptocurrencies.
How Does Cellebrite’s Crypto Tracer Solution Work?
The Cellebrite crypto tracer solution creates an array of data sets with attributable points. The toolkit collects data from open-source and private references, deception data, and human intelligence, which results in a data set of 522 million attributable points.
Leeor Ben-Peretz, chief strategy officer of Cellebrite, sheds some light on how the tracing solution aggregates and intelligently uses data to help users trace illicit activity. The firm claims that its solution, with millions of data sets, can pinpoint the origin of funds as well as where the fund is headed to and can determine if the destination is an exchange or a wallet. Peretz explained:
“Some of the major features of the solution include the ability to conduct risk scoring and profile hundreds of global exchanges, ATMs, mixers, money laundering systems, gambling services, and known criminal addresses and assign risk levels to transactions.”
The launch of the crypto tracing tool could not have been timed better. Just last week, Twitter experienced one of the worst cyberattacks in recent history, where the accounts of hundreds of prominent personalities like Elon Musk, Kanye West, Jay-Z, and many more were taken over by hackers.
All the accounts tweeted a fake bitcoin scam promising people to double the amount they send to the mentioned bitcoin address. While the scams look apparent to many, and Twitter managed to gain control within a few minutes, hackers still managed to get over $100,000.
With other blockchain tracing providers such as Chainalysis also tracking the transactions of the wallets that received these funds. Now, with CipherTrace powered, Cellebrite’s tracing solution can help in locating the accused behind these hacks. However, cybercriminals have adapted to the evolving landscape of technology, and have become more sophisticated in their hacks and scams.
John Jefferies, a chief financial analyst of CipherTrace, believes as the cryptocurrency gains more mainstream adoption, the crimes associated with it will also see a rise. He said:
“As the market capitalization of crypto grows, larger financial crimes and nation-state scale. Regulatory reform, driven by the updated FATF guidelines, will force jurisdiction arbitrage as new laws are enacted, globally on unsynchronized timelines.”