Module 3 Flashcards
- Explain why criminal organizations use cryptocurrency. - Describe the common types of cryptocurrency crimes. - Identify Peer 2 Peer (P2P) exchanger websites and how they’re used in money laundering schemes. - Assess evidence in scenarios of criminal cryptocurrency activities.
Bitcoin was first intended to be developed as a “Peer-to-Peer Electronic Cash System” or, put simply, a__________.
digital cash
The _________ is an encrypted network built on top of the existing internet.
Dark Web
Which of the following is NOT one of the most popular cryptocurrencies on the market today?
A) Monero
B) Zcash
C) Digicash
D) Bitcoin
C
Traditional bank accounts used to collect funds from the proceeds of human trafficking and smuggling schemes are known as?
Funnel Accounts
____________ is a type of malicious software from cryptovirology that threatens to publish the victim’s data or perpetually block access to it unless money is paid.
Ransomware
Which of the following is the primary reason why tax evaders use cryptocurrency as a way to evade paying taxes on their income? (Check all that apply.)
A) unreachable from law enforcement
B) lack of taxation on earnings
C) taxpayer anonymity
D) anti-government who doesn’t believe in taxes
A, B, C, D (All of the above)
What legal statute has been effective in bringing charges against those involved in criminal activity who utilize cryptocurrency?
18 U.S. Code § 1960 - Prohibition of unlicensed money transmitting businesses
Which of the following is NOT a person who might use a P2P Exchanger?
A) Someone who wants to make a charitable contribution
B) Someone who wants to make money/return on investment
C) Someone who doesn’t want his/her transaction(s) to be reported or noticed by the government
D) Someone who needs to offload large quantities of bitcoin because they’re a darknet vendor
A
Peer to peer exchangers can often be charged with 18USC1960 for operating as:
Unlicensed Money Service Business
Which of the following is NOT a P2P Exchange website?
A) PAXFUL
B) Bitcoin.org
C) Localbitcoins
D) None of the above.
B
__________ is a data mining strategy used to identify a previously anonymous source by cross-referencing with other sources of data.
De-anonymization
From which type of wallet is it easier to steal bitcoin?
Paper Wallet
The real name of illegal drug distributor Pharma-Master who sold fentanyl on the darknet marketplace Alphabay is:
Aaron Shamo
Which of the following is a reason why crypto users engage in a P2P exchange? Check all that apply.
A) Need a large(r) amount of bitcoin very quickly
B) Avoid “daily limits” set by licensed exchangers
C) Distrust ‘bank’ type institutions
D) Lack a bank account to link to a legitimate exchange
E) Anonymity
All of the above
Which of the following is NOT a person who might use a P2P exchanger?
Someone who wants to make a charitable contribution
The image below represents what type of cryptocurrency crime?
Ransomware
