According to a recent survey, only 11% of state agencies and more than 50% of federal agencies use blockchain analytics tools.
Ninety percent of participants in a TRM Labs survey titled “Tackling Crypto Crime,” which involved over 300 law enforcement professionals from the United States and other countries, said their organisations provide crypto training, but 99% want to see more of it.
93% of those who responded to the survey were members of American law enforcement, the majority of whom worked for federal agencies and the remainder for state, county, or local organisations. By 2027, they expect crypto to account for 51% of their investigations, up from 40% at the moment. The majority of law enforcement professionals believe they are unprepared for this future, even in spite of expectations of increased crypto studies.
The survey was carried out by an outside polling firm from October 18 to November 3, 2023. The respondents had worked for their current law enforcement agency for a minimum of one year, and during that time, they had looked into or overseen at least one cryptocurrency-related criminal offence.
Just 11% of state agencies currently use blockchain analytics tools, compared to over 50% of federal agencies, according to the survey. About 61% claimed they don’t have enough cutting-edge technology to effectively combat cybercrime threats.
According to TRM Labs data, between January and November of 2023, hackers took about $1.7 billion worth of cryptocurrency, which is on pace to be less than half of the total taken last year.
In November of last year, the bridge that links Ethereum to the HTX exchange was compromised for roughly $87 million in cryptocurrency assets. This hack occurred approximately two weeks following unapproved withdrawals from the cryptocurrency exchange Poloniex. Four cryptocurrency-related cases were listed in the Internal Revenue Service’s (IRS) top 10 cases for 2023.
Roughly eighty percent of respondents rate blockchain analytics investment as “critical” or “high” priority. The TRM Labs report does point out that American law enforcement has not yet completed all of its plans for staff crypto education. More than 50% of participants point to a lack of funding, experience, and investigators as the main barriers preventing law enforcement from effectively combating cryptocurrency crime.