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Bitcoin article

On the one hand, Bitcoin is a unique currency with advantages; on the other hand, they are vulnerabilities that allow using Bitcoin to commit financial crimes:
1. Accessibility - anyone can download a free open source software application from the website to send, receive and store Bitcoin: 1.
 
Bitcoins, as well as to control operations in the Bitcoin system;
2) The speed of transfer allows for the immediate and commission-free transfer of any funds, including those received illegally, from one country to another [10];

3. Course fluctuation. Statistics of low exchange rate fluctuation Bitcoin significantly reduces the risks of exchange transactions;

4. Prevalence. According to law enforcement agencies, Bitcoins are widespread in the criminal world: there have been cases of websites linked to terrorist organizations being used to collect donations from Bitcoins, and cases where extremists have discussed the possibility of using Bitcoin to purchase weapons;

5. Ease of registration. Having access to the Internet, a user can register the Bitcoin address, which functions similarly to accounts on the websites of the Bitcoin exchange service providers or online wallet service providers;

6. 6. Lack of control. The main difference of the system is its decentralization - the complete absence of a private or public supervisory authority;

7. Anonymity of both users and operations - the Bitcoin system is based on Blockchain technology, which consists of a chain of blocks formed in a certain way. Each block is a means of recording transactions. Each block except the first one includes information about the previous transaction and a header. However, this information contains only the cryptographic addresses without systematic binding to the individual [8], and the user can have multiple addresses and remain anonymous.
On the one hand, the listed Bitcoin characteristics are advantages for users, on the other hand they can
 
to become a powerful tool for financial crimes for money laundering. Through anonymity, Bitcoin can keep shady deals a secret.

Below are some examples of the world's most famous virtual money crimes:
1. "LIBERTY RESERVE - is a money transfer system and one of the world's largest fraud schemes using crypto currency. The system, which was managed by 7 people and was founded in Costa Rica, has reached a huge scale with more than a million users worldwide, including more than 200,000 users in the United States. In order to make a money transfer, the sender converted US dollars into the virtual currency of the Liberty Dollars system, where the money was transferred, with the subsequent possibility of conversion into fiat currencies. The organizers of the system were noticed by the U.S. law enforcement agencies in money laundering through the movement of illegal proceeds worth more than 6 billion U.S. dollars, after which "Liberty Dollars" completely lost access to the United States financial system.

2. "THE SILK ROAD. (SILK ROAD) is a so-called anonymous trading platform, also called "e-bay for drug dealing". The "SILK ROAD" internet platform allowed sellers to advertise prohibited categories of goods and sell them in exchange for Bitcoins. Goods were usually sent by post or courier service. [4] The principle of the electronic platform is similar to the world-famous browser Tor, the location of servers was hidden from law enforcement agencies, and by using Bitcoins as a means of payment [15], it is impossible to identify the persons involved in the transaction. During the detention of the organizers of the trading platform, 174,000 Bitcoins were seized, for a total amount of more than 30 million.
 
In the course of arresting the organizers of the trading platform, 174,000 Bitcoins were seized, totaling more than 30 million US dollars.

3. "WESTERN EXPRESS INTERNATIONAL is another site created for the purpose of cyber-fraud. Through this criminal scheme, stolen credit cards, personal data and identification codes were sold to counterfeit bank cards. The main vulnerability of the system and the way to avoid prosecution of law enforcement agencies was the anonymity of chat rooms, virtual cryptographic accounts. The funds were moved in several countries at once, with more than $35 million withdrawn, including through the Bitcoin. The main link in the criminal chain was Western Express International Inc., New York, a company registered as a provider of money transfer and virtual currency exchange services. In February 2016, 16 members of the criminal group pleaded guilty to fraud and money laundering.

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