By
Mayowa Adebajo
February 14th, 2024
In addition to the expected surge in crypto-related probes, the survey uncovered a noteworthy trend in the adoption of blockchain analytics tools.
According to a survey conducted by TRM Labs, 93% of law enforcement agencies worldwide are currently engaged in crypto training programs, with an overwhelming 99% expressing the urgent need to enhance their education to combat illegal activities within the industry effectively.
The study titled “Tackling Crypto Crime” was carried out by an external polling company between October and November 2023 to delve into the complexities of crimes involving digital assets and assess the readiness of law enforcement agencies for the evolving economy.
The survey, which included around 300 respondents from United States law enforcement and global regulatory bodies, revealed the pressing need for increased crypto training.
Crypto Investigation to Reach 51% by 2027
The study found that 93% of the participants were from the US, with more than half coming from federal agencies such as the Department of Justice, the Federal Bureau of Investigation, and Homeland Security. In contrast, the rest came from state, county, and local agencies.
However, the remaining 7% joined the survey from other parts of the world.
The surveyed respondents each had at least one year of employment at their current law enforcement organization and are currently investigating or overseeing at least one criminal offense involving crypto in the past year. Some participants ( 40%) said their investigations involve crypto-related crimes, and they expect the number to rise to 51% by 2027.
Law Enforcement and Blockchain Analytics Tools
In addition to the expected surge in crypto-related probes, the survey uncovered a noteworthy trend in the adoption of blockchain analytics tools.
Over 50% of federal agencies leverage these tools for their investigations. The move showcases a proactive approach to combating crypto-related crimes. In contrast, only 11% of state agencies are exploring such tools to aid their investigations. Another group, approximately 61% of respondents, highlighted a lack of advanced technology as a hurdle in effectively addressing crypto-criminal threats.
The survey also found that 80% of the respondents considered investing in blockchain analytics a “critical” or “high” priority. Despite this, the report revealed that US law enforcement has not fully implemented its plans to educate its staff on crypto.
Over half of the survey participants identified shortages in investigators, expertise, and funding as primary obstacles preventing law enforcement from effectively combating crypto crime.
TRM Labs also reported that cybercriminals stole approximately $1.7 billion in cryptocurrencies between January and November 2023.
Last year, blockchain analytics company Chainalysis revealed the industry lost $3 billion to bad actors through 125 hacks in 2022.