Big Blockchain Intelligence Group Inc. has created a two-stage strategy for working with law enforcement, finance and e-commerce sectors to investigate, track and monitor illicit activity involving cryptocurrencies such as Bitcoin. Leading the charge on the strategy’s rollout is former special agent Robert Whitaker, Big Blockchain Intelligence Group’s recently appointed director of forensics and investigations.
Mr. Whitaker underscored the timeliness of the strategy announcement in light of the Reuters news article from Dec. 14, 2017, regarding U.S. prosecutors charging a woman in Long Island, N.Y., with laundering over $85,000 in fraudulently obtained money through Bitcoin to help ISIS.
Mr. Whitaker commented: “We developed our flagship product, QLUE, to be the solution to this problem. QLUE’s tracking and tracing capabilities enable law enforcement and financial institutions to level the playing field and catch the people that make up this quickly adapting criminal element.”
Big Blockchain Intelligence Group’s two-stage strategy involves: (1) working with the law enforcement and financial sectors to fully expose the scope of the global Bitcoin laundering problem; and then (2) providing a suite of proprietary tools needed to reduce the risk of illicit activities while also finding and rooting out the people and criminal activities behind the problem.
Mr. Whitaker commented: “It wasn’t commonly known until now that Bitcoin was being used for terrorist financing, which is understandable since Bitcoin is designed to have a high degree of anonymity compared to traditional currencies. But what we at Big Blockchain Intelligence Group have always explained is that Bitcoin is only pseudo-anonymous. So, in the same way that crime scene investigators use UV [ultraviolet] light to reveal evidence that was previously hidden, our first step is to work together with QLUE to clearly see what is really going on with this problem.”
As Bitcoin and other blockchain cryptocurrencies continue to become more widely used and accepted, the opportunity for the criminal element to defraud unsuspecting investors and bypass law enforcement efforts continues to grow. Evidence of the need to address this problem is already common:
According to Cointelegraph, a website dedicated to cryptocurrency information and news, losses connected to cryptocurrency crime so far in 2017 amount to approximately $225-million.
Reuters reported on Dec. 15, 2017, that European Union states and legislators agreed on stricter rules to prevent money laundering and terrorism financing on exchange platforms for Bitcoin and other cryptocurrencies.
The U.S. Securities and Exchange Commission has charged a number of companies with defrauding investors through initial coin offerings (ICOs), an unregulated blockchain workaround for raising money quickly and outside of standard channels.
Mr. Whitaker is currently using Big Blockchain Intelligence Group’s proprietary software QLUE (qualitative law enforcement unified edge) to target several categories of criminal activity presently associated with cryptocurrency use, including:
- Sale of illicit goods;
- Financing criminal activities (including terrorism);
- Money laundering;
In turn, Big Blockchain Intelligence Group and QLUE are creating a paper trail or cybertrail by gathering evidence, tracking movement of funds, engaging in transaction risk assessment and ultimately connecting criminals with their crimes.
About Big Blockchain Intelligence Group Inc.
Big Blockchain Intelligence Group has developed from the ground up a blockchain agnostic search and analytics engine allowing regulatory technology, law enforcement and government agencies to trace, track and monitor cryptocurrency transactions at a forensic level.