Software
Drug traffickers are increasingly using Bitcoin ATMs to transfer funds
March 4, 2021
According to the U.S. Department of Justice's Drug Enforcement Administration, drug traffickers increasingly relied on crypto ATMs to conduct illegal money transfers last year, according to a report in AMBCrypto
The DEA noted a surge in Bitcoin withdrawal by dark web vendors who were concerned with "loss of funds." DEA stated that COVID-19-imposed lockdowns in 2020 delayed drug shipments, causing funds to remain in escrow, which could devalue before dealers were able to cash out.
During the pandemic, border restrictions between U.S. and Mexico restricted physical cash flow and traffickers began resorting to crypto ATMs as one way for drug dealers to transfer funds.
The value of the original drug proceeds, now in a virtual form, can easily be transferred to another virtual currency user instantaneously, removing a great deal of the risk associated with transporting large amounts of bulk currency.
In 2020, darknet markets received a total of $1.7B billion worth of cryptocurrency according to a report in . Residents based in U.S. alone sent $115 million to darknet markets and received $64 million.
