Research on the cryptocurrency market continues to draw attention, with a recent survey by blockchain data analysis firm TRM Labs highlighting the perspectives of over 300 law enforcement professionals from the US and internationally. The survey, titled “Combatting Crypto Crime,” found that 90% of respondents believe their organizations provide crypto training, yet 99% desire an increase in such programs.
According to the survey, 93% of participants were from US law enforcement, with the majority from federal agencies and the remainder from state, county, and local institutions. The survey revealed that 40% of their investigations currently involve crypto, with expectations that this will rise to 51% by 2027. Despite this anticipated increase, many law enforcement experts feel unprepared for the future.
The survey was conducted between October 18 and November 3, 2023, by an external survey company. Participants had at least one year of experience in law enforcement and had investigated or overseen at least one crypto-related crime in the past year.
More than half of the federal agencies currently use blockchain analysis tools, yet only 11% of state agencies do so. 61% of respondents indicated a lack of advanced technology to adequately address crypto crime threats.
TRM Labs’ data shows that malicious actors stole approximately $1.7 billion in crypto through hacking attacks between January and November 2023, which is less than half the amount stolen the previous year.
Noteworthy results from the survey include a bridge protocol connecting HTX exchange to Ethereum being hacked in November, resulting in a loss of about $87 million in crypto assets. This incident occurred two weeks after the Poloniex exchange suffered unauthorized withdrawals. The IRS included four cases related to crypto assets in its top 10 cases list for 2023. Approximately 80% of survey participants view investment in blockchain analytics as a critical or high priority. However, the TRM Labs report indicates that US law enforcement has not fully implemented plans to train personnel in crypto. Over half of the participants identified the lack of investigators, expertise, and funding as the main barriers to effectively combating crypto crimes.
