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Europol: Wasabi Wallet makes it difficult to track illegal transactions

Europol: Wasabi Wallet makes it difficult to track illegal transactions

Europol has studied the operation of the wasabi Wallet and concluded that the tool makes it much more difficult to track illegal transactions – in most cases, the police can not “Demix” them.

The Europol cybercrime center (EC3) analyzed the impact of Wasabi Wallet on the ability of law enforcement agencies to analyze the Bitcoin blockchain for crime investigation and released a report labeled “only for law enforcement agencies”.

Recently, the report was published on one of the channels in Telegram, and the press service of Europol confirmed its authenticity, adding that the document “does not contain any operational information.” The first part of the report was distributed to law enforcement officials in April.

“The situation is not going well for law enforcement because of this relatively new software,” EC3 reports in the report, referring to data from the analytical company Chainalysis, which estimated the amount of proceeds of crime that passes through the Wasabi Wallet.

EC3 deals with “fighting crime in the digital age” and often it is financial crimes on the Internet. The EC3 report mainly describes how Wasabi Wallet works and how by providing users with more privacy, the tool combines transactions and obfuscates their history.

The second part of the report, published in may, focuses on how law enforcement officers can try to detect Wasabi Wallet transactions in the blockchain and how to use the wallet to make transactions.

The report also raises the question of whether law enforcement agencies can “Demix” these transactions. According to Europol, “in most cases the answer will be negative”, although there are ways to do this if the user makes a mistake.

Recall that last year it was reported that the number of mixed cryptocurrency transactions increased by 300%. In addition, last summer, the Wasabi Wallet user community brought together 100 people to jointly perform a CoinJoin transaction on the Bitcoin blockchain.