Jul 3, 2024 3 min read

Bitrace CEO Invited to Deliver a Lecture on Cryptocurrency Crime and Money Laundering at Hong Kong Polytechnic University

Recently, Bitrace’s CEO, Isabel SHI, was invited to deliver a lecture on “Cryptocurrency in Crime and Money Laundering” at Hong Kong Polytechnic University. Representatives from the Hong Kong Monetary Authority, Hong Kong Customs, and Hong Kong Police Force also attended this lecture.

During the presentation, Isabel first explored why cryptocurrencies are widely used in criminal activities. She highlighted that the anonymity, decentralization, and ease of cross-border transfers make cryptocurrencies an native tool for illegal activities. Isabel explained, “On-chain addresses do not require KYC (Know Your Customer) verification, which isolates transactions from real identities. The decentralized nature means that unless you have the private key, no one can access your assets.” She also mentioned that the permissionless and cross-border transfer characteristics of cryptocurrencies allow anyone to conduct transactions anytime and anywhere, making them a preferred tool for criminals.

Isabel cited several specific cases, including illegal online gambling, black market transactions, fraud, money laundering, drug trafficking, terrorism financing, and ransomware activities. She elaborated on how these criminal activities leverage cryptocurrencies. For example, traditional drug transactions now heavily rely on cryptocurrencies, making it more difficult for law enforcement agencies to trace transaction records. She also introduced new types of crimes enabled by blockchain technology, such as on-chain hacking that exploits blockchain contract vulnerabilities and hash-based online gambling.

Isabel also shared Bitrace’s extensive experience in collaborating with regulators and law enforcement agencies, which has enabled them to develop an AI and big data-driven end-to-end crime management system. By conducting long-term research on criminal industry chains and utilizing advanced risk data analysis AI models, Bitrace can more accurately and swiftly monitor, identify, and trace suspicious addresses and transactions. For instance, in combating phishing attacks through fake wallet apps, Bitrace team has assisted law enforcement agencies in dismantling professional coin-stealing criminal gangs by monitoring and identifying risk data. These gangs are typically composed of technical teams, promotional agents, and downstream money laundering groups. The technical teams handle product development and maintenance, while agents execute phishing schemes, leading to downstream money laundering. Bitrace continuously monitors and automates the expansion of addresses and activities associated with various criminal groups, enabling quicker and more effective identification of blockchain criminal activities and increasing the interception rate of illicit funds.

Bitrace is dedicated to closely cooperating with regulatory and law enforcement agencies to assist in the intelligent monitoring and analysis of cryptocurrency market risks, thereby enhancing regulatory efficiency. Isabel stated, “We are committed to leveraging technology to safeguard the security and stability of the financial system. Through our efforts, we aim to contribute to the fight against cryptocurrency-related crimes.”

Furthermore, Bitrace provides compliance tools and services to Web3 enterprises, such as Virtual Asset Service Providers (VASPs) and Virtual Asset Over-The-Counter (VAOTC) platforms, to enhance their risk management capabilities. By monitoring and analyzing transaction activities in real-time, Bitrace can identify potential risks and suspicious behaviors, aiding these enterprises in strengthening their anti-money laundering capabilities and preventing fraud and illegal transactions. Isabel added, “We work closely with VASPs and VAOTCs, helping them better manage risks and ensure the security and compliance of their platforms.”

In conclusion, Isabel offered professional advice on how individuals can protect themselves from becoming targets of crypto scams. She emphasized the importance of being cautious in identifying phishing links and fake apps, protecting private keys, staying informed about industry news, understanding new scam tactics, and improving fraud prevention awareness.

After the presentation, Isabel engaged in interactive discussions with several attendees, sharing her industry experience and Bitrace’s business development and talent recruitment plans in Hong Kong. Isabel expressed an optimistic outlook for the future development of the Web3 industry in Hong Kong. She believes that Hong Kong’s world-class financial infrastructure, open policy environment, and rich talent pool provide a solid foundation for the Web3 industry’s growth. She looks forward to seeing more startups and innovative projects thrive in Hong Kong and believes that with the combined efforts of the government and businesses, Hong Kong will set an example for the global blockchain industry.

Contact us:

Website: https://www.bitrace.io/

Email: bd@bitrace.io

Twitter: https://x.com/Bitrace_team