How Digital Currencies can Help Police Catch Cybercriminals

Among the emergence of digital Currencies is an examination of cryptocurrencies, including their benefits and threats, responsibilities, the use of blockchain technology to combat criminal activity, and the manner in which the Central Intelligence Agency (CIA) built the instrument. Within the context of an exclusive interview, Iurii Gugnin, the founder of the Evita B2B cross-border payments platform, discusses a variety of issues, including those listed above.

Transparency of the Cryptocurrency Market

With your extensive experience in the digital financial assets field, what are your insights on crypto trends and recent encounters with cybercrime?

The trend toward automation is clearly on the rise, as evidenced by the facts. I will not rule out the potential that the progress of artificial intelligence may one day lead to the creation of virtual presidents, as represented in works of science fiction. I will not rule out the possibility. Given all of the potential that modern technologies possess, it is possible that they will soon.

Due to the fact that technology is becoming increasingly integrated into our everyday lives, the incidence of cybercrime is anticipated to rise. The fact of the matter is that the likelihood of digital theft might increase in proportion to the number of opportunities for hackers.

Which cybercrimes are most common?

Money laundering is typically the most common type of cybercrime that occurs in today’s world. Attackers that are tied to terrorism, drug trafficking, bypassing sanctions, and other illegal activities are also involved. Increasing the transparency of financial markets with the assistance of cryptocurrencies is currently my primary emphasis. This will ultimately result in a reduction in the number of instances of fraudulent activity.

A Crypto Banking Compliance Summit was held in Washington, DC, and I was able to attend it recently. While I was there, I had conversations with officials of government agencies that are working to combat crime in the United States. Due to the fact that all criminal activities are now visible, their work has become less difficult and more efficient as a result of cryptography.

By virtue of the fact that every wallet is recorded and every transaction is forever saved in the blockchain network, cryptocurrency is completely transparent. The sending of cash packages through the United States Postal Service (USPS) mail is the method that is both the most common and the safest for criminals to use when laundering money. When we integrate cryptocurrency into business-to-business transactions, we make it more difficult for criminals to conceal their activities from authorities.

How does crypto help officials confront criminality?

During the year 2018, I provided guidance to five governments, including Russia, China, Brazil, South Korea, and Turkey, regarding the legalization of cryptocurrencies and co-authored various federal laws on digital assets. The primary message that I conveyed to the officials was that “Crypto is the dream of an intelligence officer.” Due to the fact that everything in cryptography is open, visible, and preserved for extended periods of time, it is difficult to delete anything retrospectively.

An increasing number of financial institutions and intelligence organizations are beginning to implement blockchain analysis platforms, such as Chainalysis. A maximum of ninety percent of wallets on major blockchains such as Bitcoin and Ether are marked up by these firms.

Intelligence agencies in the United States are aware of who owns what cryptocurrency, who paid whom, how much, and when they paid. Everything about it is perfectly clear. When you essentially make your transaction public to the entire globe, it becomes very difficult to utilize cryptocurrency for the purpose of money laundering.

An issue in teaching is the root cause of a significant portion of the bad opinion of crypto. Because their workers feel that cryptocurrency is utilized for fraudulent activities, money laundering, and the withdrawal of monies that were gained unlawfully, many banks in the United States are skeptical of it. The blockchain, on the other hand, records every transaction, which means that any indications of illegal activity are immediately revealed.

Are American authorities employing this method of control?

There have been conversations I’ve had with coworkers who have worked for the CIA and investigated digital crimes. It is their contention that the implementation of cryptography has resulted in a major increase in efficiency. It is interesting to note that the United States government is one of the greatest holders of Bitcoin.

This is due to the fact that they have apprehended a huge number of criminals and taken possession of their cash. Bitcoin can be used to buy real estate or automobiles in the United States of America. Taxes can even be paid in some states you live in. It is a method of payment that fulfills the requirements of the law and is actively monitored and supervised by the state.

What is the situation in other countries?

Over the course of 2017 and 2018, I spent a few months living in South Korea. The Gangnam district, which was made famous by a song, was home to two large cryptocurrency exchanges well before the song was released. The buying and selling of cryptocurrency was taking place amid a queue of people who were carrying suitcases full of cash.

Both the main avenues and the metro stations were covered with advertisements for cryptocurrency exchanges. During the time that I was there, I was able to conduct consultations and give a speech in the National Assembly of the Republic of Korea. In both of these events, I emphasized that the legality of cryptocurrency makes monitoring easier, which ultimately results in an increase in the openness of the financial system. There are now a number of cryptocurrency exchanges that are operating legally in South Korea, and they are actively working along with banks and the government.

Digital assets have been made legal in a number of European countries, including Japan, Switzerland, and a number of other European nations. To put it simply, regulation of the cryptocurrency market is not only present in the majority of developed countries, but it is also undergoing a process of systematic development.

How do developing countries fare in this context?

Specifically in Africa and India, there are difficult situations to be found. It is common for these countries to struggle with a lack of valuable exports and an abundance of imports, which ultimately leads to a negative trade balance. As a direct result of this, it becomes extremely challenging for them to permit the outflow of any currency. Despite this, an increasing number of individuals are discovering ways to acquire cryptocurrency, even in the current climate.

Cryptocurrency’s Reputation

Why has crypto earned such a ‘complicated’ reputation?

I have been working in this field for seven years, and throughout that time I have come to the realization that crypto mostly serves the needs of the extremely professional user. Dealing with cryptocurrency is an experience that is intolerable for 99 percent of the public.

Take, for example, the situation where you have misplaced your password or misdirected your money, and there is no way to reclaim it. A loss of funds that cannot be recovered is the result of each and every mistake.

I transferred cryptocurrency worth 18 million dollars in 2018. A single error in a single symbol may have resulted in the disappearance of all of the money. Thankfully, I carried out the task correctly, and the money was not compromised. There are a lot of people who aren’t properly prepared for the kind of responsibility that comes with handling their own finances.

For exactly this reason, an infrastructure consisting of custodial banks is currently making its way into development. When it comes to storing cryptocurrency for non-professionals, these banks will charge fees. In the event that a person forgets their password, they can easily go to the bank and have their access to their funds restored.

Is cryptocurrency safe for the average person?

“I would like to make it clear that I am not implying that cryptocurrencies pose a threat to the general population. I will demonstrate this point with an analogy. Take, for example, a helicopter, which is, to put it bluntly, a highly complicated instrument that is designed for pilots with a high level of expertise.

It is not something that I would suggest to everyone: get a helicopter, learn how to fly it, receive flying training hours, and so on. On the other hand, if someone needs to go quickly and avoid becoming stuck in traffic, they are welcome. However, you should be aware that this choice comes with a variety of responsibilities, including the possibility of risks, and that your life is entirely in your hands.

Read More: Cybersecurity Best Practices: Safeguarding Your Business from Attacks

Fast Transactions and Minimal Bureaucracy

Despite its risks, an increasing number of people are turning to crypto. Why?

“By using cryptography, transfers are substantially quicker. When compared to a SWIFT transfer, which might take up to an hour at most, I can transmit USDT in about thirty seconds. SWIFT can take up to a week to complete in certain locations. The time span that spans from thirty seconds to one week is a significant difference.

Another factor to consider is the cost of making a payment. The cost of a transfer in cryptocurrency is one dollar, whereas the cost of a payment through SWIFT can range anywhere from forty-five dollars to one hundred euros for banks in the United States and Europe. Within the realm of cryptography, there are no delays for compliance because everything is completed automatically. Following the sending of the payment, it was received without delay. The entire compliance process in the cryptocurrency industry is automated and takes only a few seconds to complete.

Crypto’s Importance to International Business

Utilizing crypto demands a certain level of expertise. In your opinion, who should explore this field? What considerations should take precedence?

The acquisition of information about crypto is necessary for everyone who is involved in the import or export of goods, particularly when dealing with considerable sums of money. Because of services such as ours, you can pay between 0.25 and 1.5% for currency exchange rather than between 3 and 5%, which results in a significant reduction in costs for our customers.

Password storage is the most important part of cryptography when it comes to the protection of sensitive information. What exactly is a cryptocurrency wallet? One may say that it is little more than a few lines of symbols. Your public address, which is quite well-known, is listed on the first line. The password can be found on the second line. It is essential that you do not keep it on your mobile device or computer, as these are places where it could be readily stolen.

Create a one-of-a-kind format for the shuffling of private keys that you may use for yourself, and then commit it to memory. You should set a reminder to log in to your wallet every few weeks, and think of it as if you were beginning the process from the very beginning.

Altering wallets on a regular basis is another essential practice. As time passes, they may become “dirty,” resulting in a loss of compliance. Attackers who are attempting to break into large wallets frequently transmit so-called “dust” in an effort to fool you into performing a transaction despite your best efforts. To ensure that everything is correct, it is necessary to check it multiple times.

Within the context of the financial ecosystem, the transparency that our Evita service provides has considerably improved. The monies that are used by the illicit market in banking and cryptosystems are subjected to a thorough examination and marking by our team. When carrying out transactions, we make certain that the government is in possession of a comprehensive collection of documentation that demonstrates who the owner of each cryptocurrency wallet is. The management of significant business-to-business transactions that total several hundred thousand or millions of dollars is already under our purview.

Take the following scenario into consideration: if you are transferring $100, you could be ready to pay a fee of $5. When it comes to large purchases, such as real estate, art pieces, or automobiles, however, that five percent can become a sizeable amount depending on the circumstances. We contribute to a reduction in the cost of payment for major transactions that is five to ten times lower than what is offered by mainstream banks.

The rate at which payments are handled is another important consideration. There are certain payments that must be delivered from the United States to Europe or another region of the world before the end of the working day. Our ability to keep accounts in a variety of countries, each of which has access to the local payment system, allows us to speed up this process.

How do you address the challenges of crypto technology from a user perspective?

We keep our digital assets with a licensed custodian in the United States. Even in the event that a customer forgets the password to their Evita account, we are able to restore it, and the cryptocurrency will continue to be in the customer’s ownership.

Customers are provided with information regarding the ‘quality’ of the bitcoin that they have received, which includes the presence of linkages to elements such as the dark web, criminals, terrorists, sanctions, and so on.

The ability to pay for goods and services anywhere in the world is made possible by us. Customers can add tokens to their Evita wallets, and their suppliers will be able to accept fiat currency in their respective jurisdictions.

How many clients do you currently have working with you?

“The market was the subject of our research for a year and a half. The problems and wants of the population were investigated, and we came up with solutions. During my time spent traveling and living in a variety of places, I recalled my personal experience and the difficulties I encountered with cards and payments.

Beginning in April 2023, our sole concentration has been on foreign financial transactions. Over the course of just half a year, our monthly revenue has increased from zero to fifteen million dollars. In order to receive a license, we have submitted the necessary papers, and while the documentation is being evaluated, we are now operating as a factoring business.

In the process of making transfers, we pay for the customer out of our own personal cash before the funds from the client are deposited into our account. Even if the transmission takes only one minute, this still carries some degree of risk. Due to the fact that our working capital is restricted, we do not wish to take any risks that are not absolutely essential. We will be able to open direct accounts for customers in the United States, trade cryptocurrency for fiat currency, and do a great deal more with the license; all of this will be done in a swift, legal, and certified manner.

Read More: How to Recover from a Data Breach and Strengthen Your Cyber Defenses in the Workplace

More About Gugnin: How Digital Currencies can Help Police Catch Cybercriminals

One of the founders of Evita, a startup that specializes in business-to-business (B2B) cross-border payments, is Iurii Gugnin. As soon as the service was put into operation, the monthly turnover increased to $15 million within the first six months.

The Ph.D. that Iurii possesses is in financial mathematics, and he also has a Master’s degree in computer science. He has provided guidance to the governments of five nations in Europe, Asia, and Latin America regarding the potential legalization of cryptocurrencies.

Additionally, he established one of the first European business schools that specialized in digital management and RIC production, as well as the blockchain-based investment platform Karma for small and medium-sized enterprise (SME) finance. He also automated processes for huge banks and e-commerce giants like Apple, Samsung, LEGO, Nike, and Disney.