TRM Labs surveyed more than 300 U.S. and international law enforcement professionals. While 90% of respondents believe their organizations provide crypto training, 99% advocate for an increase in this percentage.
According to the survey, 93% of respondents were from law enforcement agencies in the United States, with the majority having their place at the federal level and the remainder at the state, county, or local level.
The proportion of crypto-related investigations in their work will increase from 40% to 51% by 2027. Most law enforcement personnel must prepare for this future despite anticipating increased crypto studies.
An external polling firm administered the survey from October 18 to November 3, 2023. The participants in the study had a minimum of one year of experience in their present law enforcement agency. They had personally investigated or supervised at least one cryptocurrency-related criminal activity within the previous year.
The survey findings indicate that while over 50% of federal agencies currently employ blockchain analytics tools, only 11% of state agencies do the same. Around 61% of respondents indicated that they do not possess sufficient advanced technology to counter crypto criminal threats effectively.
According to data from TRM Labs, malicious actors stole approximately $1.7 billion worth of cryptocurrencies through breaches between January and November of 2023; this figure is projected to be less than half of what was stolen the previous year.
November saw the exploitation of the bridge connecting the HTX exchange and Ethereum, which compromised approximately $87 million worth of crypto assets.
This breach occurred two weeks after Poloniex, a cryptocurrency exchange, experienced unauthorized withdrawals. In its list of the top ten cases for 2023, the Internal Revenue Service (IRS) incorporated four instances of cryptocurrencies.
Approximately 80% of the respondents to the survey rank blockchain analytics investment as a “high” or “critical” priority. U.S. law enforcement still needs to fully implement its plans to educate its personnel on cryptocurrencies, according to the TRM Labs report.
Most participants cite insufficient funding, personnel, and expertise as the principal barriers impeding law enforcement’s ability to combat cryptocurrency-related criminal activities effectively.
