Cryptocurrencies and Drug Trafficking: A Primer for Ohio Prosecutors and Law Enforcement Agencies
Ohio State Legal Studies Research Paper No. 744
Drug Enforcement and Policy Center, December 2022
5 Pages Posted: 6 Dec 2022 Last revised: 22 Dec 2022
Date Written: December 2, 2022
Abstract
The use of cryptocurrencies has grown over time, and this growth may be attributed to the asset’s ability to transfer funds anonymously (or pseudo anonymously), globally, and with little cost and skill. Additionally, cryptocurrency transactions are irreversible. While these features may be attractive for many individuals seeking to complete lawful transactions, they may also be attractive features for those seeking to complete unlawful transactions. Importantly, research shows that cryptocurrencies are being used for a wide range of illicit activity, including drug trafficking. In fact, some reports find that cryptocurrencies are the preferred method of payment for some drug traffickers. Further, there is evidence of cryptocurrencies being used for drug trafficking and related activities in Ohio. The purpose of this report is to provide a brief description about cryptocurrencies and cryptocurrency transactions, so that Ohio prosecutors and law enforcement agencies are better-prepared to identify situations where cryptocurrencies are being used for illicit activities. Being able to identify situations where cryptocurrencies are being used for illicit activities could meaningfully impact drug interdiction and asset forfeiture efforts.
Keywords: cryptocurrency, drug trafficking, asset forfeiture, drug interdiction
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