Once the victim provides an address to law enforcement or if they find it themselves, the external entity can track the address and money through the cryptocurrency network and eventually find the end user. It's critical to note that using Bitcoin or other forms of cryptocurrency will not protect transactions from visibility. If you send or receive money for illegal activity, these transactions can be tracked and potentially cause authorities to return that you were involved in the criminal activity. Fraud, drug trafficking or purchases on the dark web (also known as the deep web), money laundering, and other white-collar crimes are also subject to government visibility.
If you try to use cryptocurrency to avoid paying taxes, authorities are likely to discover it too; even if you make a private sale in exchange for cash, those prosecutions are increasing. Anyone can view all cryptocurrency transactions from any Bitcoin wallet address. To find out where Bitcoin comes from and where they are sent, authorities can analyze the BTC addresses used to make transactions. This way, authorities get information about what is happening and when.
Although it is reported that most bitcoin transactions (98.9%) are not associated with criminal activities, the birth of cryptocurrencies has provided people with new ways to facilitate criminal activity. As a digital currency, there is no way to track or identify who is sending or receiving Bitcoin. This is a perfect way for a scammer to receive a lot of money with no way to track it down. Bitcoin doesn't involve face-to-face contact with a bank teller or cashier; instead, the money is placed in a machine such as an ATM.
Fraudsters constantly try to limit the whistleblower's interactions with others to avoid the possibility of someone warning them that they are being the victim of a scam. Therefore, BTC transactions do not always remain 100% anonymous and the government can track Bitcoin ownership as long as (a series of) Bitcoin transactions can be linked to a person's identity. Bitcoin can also be taxable if it is considered income when someone receives a salary in BTC or receives Bitcoin for providing goods or services. Events may be subject to taxes such as capital gains when Bitcoin is sold for cash, when BTC is converted into another cryptocurrency, or when Bitcoin is spent to purchase goods or services.
The men were caught converting their bitcoins into euros in bank accounts using Bitcoin trading services and then withdrawing millions in cash from ATMs.
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