Crypto laundering on the dark web: Characteristics and Modus Operandi
2024 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE credits
Student thesis
Abstract [en]
Despite that cryptocurrencies today are characteristic to the environment on the dark web, criminologists’ perspectives on this matter are still in short supply. This paper seeks to add to the limited body of research by examining and getting a hold of the contemporary trends and characteristics of money laundering via cryptocurrencies in the context of the Dark Web. Five darknet marketplaces have been examined for crypto laundering services and the online dark web forum Dread have been scrutinised for current methods of money laundering via cryptocurrencies. Using methodology based on Grounded Theory, the current methods and trends of laundering crypto have been identified. The findings suggest an overall absence of mixing services on darknet marketplaces, with only few other services and listings related to crypto laundering. By utilising the money laundering triangle, the current trends of crypto laundering collected from Dread were organised into categories. Trending strategies for the initial phase of money laundering (placement) involved trading face to face or finding a local vendor, sending cash by mail and buying gift cards with cash. For the second phase (layering), strategies consisted of converting original coins to Monero and apply churning, converting Monero to other coins, and by using fake identities. In terms of the last phase (integration), the strategies involved purchasing cryptocredit cards with Monero, linking a centralised bank to a cashapp, creating fake consulting firms and selling digital items to oneself. The primary limitation relates to not including crypto laundering specialised forums or darknet markets. Suggestions for future research encourages researchers to include the dark web in efforts to investigate crypto laundering and adapting to research strategies that allows for a more efficient data collection on the dark web in order to keep up with the rapidly changing subject of cryptocurrency in the context of the dark web.
Place, publisher, year, edition, pages
2024. , p. 31
Keywords [en]
Cryptocurrency, Dark web, Dark web marketplaces, Illicit marketplaces, Money laundering, crypto laundering, Monero, XMR, Dread Forum, Grounded Theory, Routine Activity Theory, RAT
National Category
Other Social Sciences Other Social Sciences not elsewhere specified
Identifiers
URN: urn:nbn:se:mau:diva-71383OAI: oai:DiVA.org:mau-71383DiVA, id: diva2:1901113
Educational program
HS Criminology
Supervisors
Examiners
2024-09-262024-09-262024-09-26Bibliographically approved