11_Crypto Crime Flashcards
What is cryptocurrency?
A digital asset transferred through a decentralized network using blockchain technology.
How does Bitcoin manage balances?
Bitcoin uses Unspent Transaction Outputs (UTxO) to maintain address balances linked to users.
What is a transaction hash in cryptocurrency?
It is an ID that allows querying and tracking specific transactions on platforms like blockchain.com.
What are programmable transactions in Bitcoin?
Bitcoin transactions are programmable, meaning they can be set up to execute automatically under certain conditions.
What are multi-signature (multi-sig) transactions?
Transactions that require multiple parties to provide their signatures to execute, increasing security.
What is a CoinJoin transaction?
A method where multiple users combine their transactions into one, enhancing privacy and complicating transaction tracking.
How do CoinJoins disrupt tracking heuristics?
They break assumptions made by analytics, such as linking all inputs to a single identity, thereby enhancing anonymity.
What is a cryptocurrency mixer or tumbler?
Services that mix various cryptocurrencies to obscure the trail back to the original owners, often used for laundering money.
What are Bitcoin bridges?
Services that convert Bitcoin to other cryptocurrencies like Monero using smart contracts, often to enhance privacy and obfuscate tracking.
What role do cryptocurrency exchanges play in investigations?
Exchanges can freeze assets and provide crucial KYC (Know Your Customer) information under subpoenas for criminal investigations.
How is blockchain analytics used in crypto crime investigation?
Analytics involve tracking transaction patterns and clustering similar transactions to identify suspicious activities.
What is Chainalysis, and what does it do?
A prominent company providing blockchain analytics, helping law enforcement trace and analyze cryptocurrency transactions.
Describe the relationship between cryptocurrency and privacy tools.
Advanced privacy tools and wallets like Samourai help users obfuscate their transactions, complicating the work of investigators.
What are common mistakes made by criminals using cryptocurrencies?
Criminals often underestimate the traceability of cryptocurrencies, relying on obfuscation methods that can be penetrated by advanced blockchain analysis.
