A new report by the National Crime Agency (NCA) has revealed a staggering scale of cryptocurrency-related crime in the United Kingdom. The agency estimates that up to $5.1 billion in illicit crypto transactions are linked to the UK annually.
According to the report, international criminal networks are leveraging cryptocurrencies to launder vast sums of money. These networks employ sophisticated techniques to facilitate money laundering, connecting UK-generated criminal proceeds to transnational cybercrime activities that impact victims globally.
The NCA highlighted the growing trend of using crypto assets to launder non-digital criminal proceeds, such as cash. Additionally, cybercriminals are increasingly acquiring cryptocurrencies through malicious activities like malware and ransomware attacks.
Malware, a type of malicious software, can compromise victims’ devices, while ransomware encrypts files or data, rendering them inaccessible. Attackers then demand a ransom, often in cryptocurrency, to restore access.
Earlier this year, the NCA, in collaboration with international law enforcement agencies including the FBI, successfully disrupted LockBit, a major ransomware operation. LockBit had targeted over 2,000 victims and received ransom payments exceeding $120 million.
The NCA seized control of LockBit’s primary administrative environment, hindering its ability to launch attacks. Additionally, the group’s public-facing website on the dark web was taken down, preventing the dissemination of stolen victim data.
In a coordinated effort led by Europol, two LockBit actors were arrested in Poland and Ukraine. Furthermore, over 200 cryptocurrency accounts linked to the group were frozen, disrupting their financial operations.
The NCA’s report underscores the urgent need for effective measures to combat the rising tide of cryptocurrency-related crime. Law enforcement agencies worldwide must collaborate to dismantle criminal networks and develop robust strategies to protect individuals and businesses from financial losses.
