Every time drug traffickers and other criminals convert cryptocurrency to government-issued money, their moves are being tracked, an official with U.S. Immigration and Customs Enforcement told Congress.
Matthew Allen, an assistant director of domestic operations with the Homeland Security Investigations division of ICE was talking about digital currencies and their use in drug trafficking at a hearing of the U.S. Senate Caucus on International Narcotics Control.
“On dark net marketplaces and other ‘unindexed’ websites, purchases are often paid for with cryptocurrencies such as bitcoin (BTC) and monero (XMR), among many others,” he said in a prepared statement.
He said his department is having some success in tracking criminals who use cryptocurrencies to launder proceeds from drug sales. Although he didn’t mention this in his prepared remarks, ICE was recently found to have taken out nine contracts worth $1.5 million to pay third parties to track cryptocurrency use, according to public documents. Read more here.