European Union Security Innovation Center: Crypto Mixers, Privacy Coins, and L2 Technologies Complicate Law Enforcement Tracking
According to a report by the European Union's Center for Internal Security Innovation, a network of labs that supports internal security organizations in 27 countries of the European Union, privacecoins, mixers, and L2 platforms could make it difficult for law enforcement agencies to track money.
The report, issued by crime-fighting agencies such as the European Union Agency for Law Enforcement Cooperation and Eurojust, and the European Commission, among others, tells law enforcement agencies they need to be prepared to encounter such tools in their investigations. "Mixer Tornado.cash has also been using zero-knowledge proofs, which allow users to withdraw funds from the mixer without revealing their original deposit amount," the report said. "This has greatly increased the difficulty for law enforcement to trace the origin of [illicit] cryptocurrencies."