Crypto is “easily” traceable – Michael Gromek


  • Gromek Says Illicit Transactions In Crypto Space Remain Negligible
  • Criminals can be easily tracked down and punished
  • RIPPED price at time of writing – $5.47

Because transactions can be traced, Michael Gromek, co-chair of the Digital Assets Task Force committee of the Global Coalition to Fight Financial Crime, believes that cryptocurrencies are not a haven for criminals.

During an interview with Kitco News at the Future Blockchain Summit in Dubai, Gromek made the statement. He stated that it is not true to carry out transactions on the blockchain with the expectation of escape and impunity.

Gromek tips for investors

It is not smart to transact on the blockchain using pseudonymous coins because most of the suspects can be traced easily.

Gromek revealed that the Digital Assets Task Force is able to identify criminals by working with Know Your Customer (KYC) exchange data and implementing anti-money laundering (AML) regulations, citing reports indicating that the activities illicit in the blockchain represent only 0.15 percent. of all transactions.

The financial crime consultant went on to say that even so-called “privacy currencies” like Monero (XMR), which use intricate codes to hide wallet addresses, can be traced by authorities.

Gromek’s advice to investors According to Gromek, investors should still be on the lookout for scammers and fraudsters to avoid falling victim to them.

Working only with trading venues that comply with the regulations in your jurisdiction and evaluating the risks before investing in any project are two methods to achieve this.

His disclosure comes after several privacy coins have recently fallen into conflict with regulators.

In September, cryptocurrency exchange Huobi Global removed DASH, XMR, ZEC, ZEN, and a few other privacy coins from its list.

Similarly, the popular privacy tool Tornado Cash, which is based on Ethereum, was banned by the US Treasury’s Office of Foreign Assets Control (OFAC) for facilitating money laundering transactions, particularly for associated hackers. with North Korea.

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What’s so special about Tornado Cash?

Tornado Cash runs self-executing code and does not require any permissions. The developers destroyed their management keys in May 2020, which prevented them from seeing or modifying any transactions that took place on their protocol.

The group argues that financial privacy is essential to freedom and that aside from publishing the code on GitHub, they don’t have much control over the protocol.

According to co-founder Roman Semenov, the cryptographic method (MPC) used to destroy your administration keys makes Tornado Cash transactions secure and completely unstoppable.

The protocol has been cited as a vehicle for money laundering and is often criticized for its use by hackers, who may store stolen funds there. Although the protocol is kept secret, some people have argued that if there is a large deposit and little liquidity, it is possible to trace the transactions.

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