The U.S. Secret Service have taken action to seize the assets of a convicted Bitcoin fraudster. Scott Reed, a former software engineer, was found – by agent Jason B. Brown - to be using the dark web to purchase goods like iTunes and Google Play gift cards for exchange for Bitcoin. Two BitPay accounts belonging to Reed have freeze imposed on them by the Secret Service, as it holds funds to the value of $13,595.48.

It's part of a wider clampdown on crypto crime by authorities. In 2020, $7 billion dollars was seized in cryptocurrency and $3.36 billion was confiscated the year before from Silk Road - a darknet marketplace infamous for its illegal goods trading, money laundering and drug trafficking. Meanwhile, the Chainalysis 2023 Crypto Crime Report suggest that darknet and fraud shop marketplace revenue had tumbled almost by 50%, with only the Hydra Darknet making $500 million as law enforcement authorities close its operations.

However, it isn't just through seizures of digital assets that authorities are looking to combat the expanding world of cybercrime. In London, the Metropolitan Police have implemented a system to trace drug-related darknet cryptocurrency transactions in order to help investigators. Utilising forensic tools, the address receiving substantial funds from Spain was identified, permitting the police to arrest a drugs importer.

Overall, cryptocurrency fraudsters like Scott Reed have become the targets of law enforcement agencies as a way to clampdown on the growing criminal element of the digital currency. Actions being taken range from seizing funds to tracing them down and consulting sophisticated technology to bring cybercriminals to justice. These steps are essential as cryptocurrency usage becomes more prevalent, as authorities look to protect users from the risks of illegal trades and money laundering.



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