74% OF PUBLIC AGENCIES FEEL UNDER-EQUIPPED FOR CRYPTO INVESTIGATIONS: REPORT

The rise of cryptocurrencies has presented a double-edged sword for public agencies.While digital assets promise innovation and efficiency in the financial landscape, they've also opened new avenues for criminal activity. Law enforcement and regulatory agencies investigating cryptocurrency-related incidents need better data, training and private partnerships, according to an industry survey conducted byInvestigating these crimes, however, is proving to be a significant challenge.A recent survey conducted by Chainalysis, a prominent blockchain data platform, reveals a concerning statistic: 74% of public agencies believe they are not adequately equipped to handle cryptocurrency-related investigations. This stark reality highlights a critical gap between the burgeoning crypto crime landscape and the resources available to those tasked with enforcing the law.

This isn't just about catching criminals using Bitcoin. 74% of public agencies feel under-equipped for crypto investigations: Report crypto bitcoin cryptocurrency cryptocurrencies cryptonews blockchain btcThe survey underscores the need for better data, enhanced training, and robust public-private partnerships to navigate the complexities of blockchain technology and digital asset investigations.Despite these challenges, the same agencies acknowledge the potential of crypto to positively influence financial systems.This article delves into the findings of the Chainalysis report, exploring the reasons behind this perceived lack of preparedness, the implications for law enforcement, and the steps needed to bridge the gap and equip public agencies for the future of crypto crime investigations.

Understanding the Cryptocurrency Investigation Deficit

The Chainalysis 2025 State of Cryptocurrency Investigations Survey paints a clear picture of the challenges faced by public agencies. Public sector employees need more resources. 74% of our respondents said employees at their agency aren t currently well-equipped to investigate cryptocurrency-related crime. Download the report for our full breakdown of the survey results, and learn where the public sector is today in its cryptocurrency journey.With responses from nearly 300 individuals across 183 agencies in the United States and Canada, the survey offers valuable insights into the current state of crypto-related investigations. Related: 74% of public agencies feel under-equipped for crypto investigations: Report The team also claims to have responded to more than 27,000 law enforcement requests since November, with anThe headline figure – 74% feeling under-equipped – points to a systemic issue requiring immediate attention.

But what exactly contributes to this feeling of inadequacy? Cointelegraph By Gareth Jenkinson A public agency survey conducted by blockchain analytics firm Chainalysis highlights the need for better tools, training and support for cryptocurrency-related investigations. The blockchain data platform delved into the topic in its 2025 State of Cryptocurrency Investigations Survey, with 74% of respondents indicating their agencies were under-equipped toSeveral factors are at play:

• Lack of Specialized Training: Investigating crypto crimes requires a unique skillset.Traditional law enforcement training often doesn't cover the intricacies of blockchain technology, transaction tracing, and digital forensics specific to cryptocurrencies.
• Insufficient Resources and Tools: Agencies need access to advanced analytical tools and platforms that can effectively track and analyze cryptocurrency transactions.Many lack the necessary technology to keep pace with the rapidly evolving crypto landscape.
• Data Accessibility Challenges: While blockchain data is publicly available, extracting meaningful insights can be complex. Law enforcement and regulatory agencies investigating cryptocurrency-related incidents need better data, training and private partnerships, according to an industry survey conducted by Chainalysis. ή Fear Greed ί ό Dictionary i ί Facebook Twitter Telegram Reddit YoutubeAgencies need tools and expertise to navigate the vast amounts of data and identify patterns indicative of criminal activity.
• Limited Public-Private Partnerships: Collaboration with private sector companies specializing in blockchain analytics and cybersecurity is crucial. 74% of public agencies feel under-equipped for crypto investigations: ReportThese partnerships provide access to specialized knowledge and resources that public agencies may lack.

The Evolving Landscape of Crypto Crime

It's crucial to understand that crypto crime is not a monolithic entity. ⚡ Curated Crypto Currency News ⚡Crypto Speaks To Me does not claim that curated content will be read with 100% accuracy.You can find the original post at: htIt encompasses a wide range of illicit activities, from money laundering and drug trafficking to ransomware attacks and investment scams. 74% of public agencies feel under-equipped for crypto investigations: Report Agencies Crypto Feel investigations public Report underequipped CryptonewsThe increasing sophistication of these crimes necessitates a corresponding advancement in investigative capabilities.

While some might perceive cryptocurrencies as primarily tools for criminals, the survey respondents largely rejected this notion.This suggests a growing understanding within public agencies that crypto has legitimate uses and that focusing solely on its criminal applications would be a misstep.However, this doesn't diminish the urgent need to address the growing prevalence of crypto-related illegal activities.

Common Types of Crypto Crimes

• Ransomware Attacks: Cybercriminals often demand ransom payments in cryptocurrencies, making it difficult to trace and recover the funds.
• Money Laundering: Cryptocurrencies can be used to obscure the origin of illicit funds, making it challenging to track the flow of money and identify the perpetrators.
• Investment Scams: The unregulated nature of the crypto market makes it vulnerable to fraudulent schemes and Ponzi schemes, which can result in significant financial losses for investors.
• Darknet Marketplaces: These online platforms facilitate the sale of illegal goods and services, with cryptocurrencies often used as the primary form of payment.

Addressing the Training and Resource Gap

The survey findings underscore the urgent need to equip public agencies with the necessary tools and knowledge to effectively investigate crypto crimes. The workshops were intended to help law enforcement detect and prosecute financial and cyber crimes. Related: 74% of public agencies feel under-equipped for crypto investigations: Report The team also claims to have responded to more than 27,000 law enforcement requests since November, with an average response time of three days.Relying solely on accumulated case experience, as the survey points out, is not a sustainable strategy.A proactive and comprehensive approach is required.

Key Areas for Improvement

1. Enhanced Training Programs: Developing specialized training programs that cover the fundamentals of blockchain technology, cryptocurrency investigation techniques, and digital forensics is essential. 74% of public agencies feel under-equipped for crypto investigations: Report A public agency survey conducted by blockchain analytics firm ChainalysisThese programs should be accessible to law enforcement officers, regulatory agencies, and other public sector employees involved in crypto-related investigations.
2. Investment in Technology: Public agencies need access to cutting-edge blockchain analytics tools and platforms that can help them track and analyze cryptocurrency transactions.These tools should provide real-time data, advanced search capabilities, and automated alerts for suspicious activity.
3. Data Sharing and Collaboration: Establishing secure channels for data sharing and collaboration among public agencies is crucial.This will enable investigators to pool resources, share insights, and coordinate their efforts in combating crypto crime.
4. Strengthening Public-Private Partnerships: Fostering closer collaboration with private sector companies specializing in blockchain analytics and cybersecurity is essential.These partnerships can provide access to specialized expertise, training, and technology that public agencies may lack.

For example, law enforcement agencies could partner with blockchain analytics firms to gain access to their tracing tools and expertise.Regulatory agencies could collaborate with cybersecurity companies to develop strategies for preventing and mitigating crypto-related cyberattacks.By leveraging the strengths of both the public and private sectors, a more effective and comprehensive approach to crypto crime investigations can be achieved.

The Role of Data and Analytics in Crypto Investigations

Data is the lifeblood of any successful crypto investigation. Despite the growing prevalence of crypto-related crime, many law enforcement agencies remain unprepared. In fact, according to Cointelegraph, 74% report feeling under-equipped to handle crypto investigations. Relying solely on accumulated case experience is not a viable strategy.The ability to effectively collect, analyze, and interpret blockchain data is critical for identifying suspicious activity, tracing the flow of funds, and building a strong case against criminals.

However, navigating the vast amount of data on the blockchain can be challenging. The United States Internal Revenue Service (IRS) criminal investigation division is ramping up for tax season with its sights set on the crypto community. According to a report from Bloomberg Law, the division chief Jim Lee said they are preparing hundreds of crypto-involved cases, many of which will soon be available to the public.Agencies need sophisticated tools and expertise to extract meaningful insights from the noise. The firm was speaking about the survey finding that showed 74% of about 300 respondents from 183 public agencies in the U.S. and Canada considered their agencies not well-equipped to investigate cryptocurrency-related crime.This is where blockchain analytics platforms come into play.These platforms provide a range of features, including:

• Transaction Tracing: Tracking the movement of funds across the blockchain to identify the origin and destination of illicit transactions.
• Entity Clustering: Identifying and grouping related cryptocurrency addresses to uncover hidden connections and patterns.
• Risk Scoring: Assessing the risk associated with specific cryptocurrency addresses and transactions based on various factors, such as involvement in known criminal activities.
• Alerting and Monitoring: Providing real-time alerts for suspicious activity and monitoring cryptocurrency transactions for potential threats.

By leveraging these tools, public agencies can significantly enhance their ability to detect, investigate, and prosecute crypto crimes.The Chainalysis report itself highlights the importance of access to such data for effective investigations.

The Chainalysis Response and Commitment to Law Enforcement

Chainalysis, the firm behind the survey, isn't just highlighting the problem – they're actively working to be part of the solution.The company claims to have responded to over 27,000 law enforcement requests since November, with an average response time of just three days.This demonstrates a commitment to supporting public agencies in their efforts to combat crypto crime.

This responsiveness includes providing training workshops designed to help law enforcement officers detect and prosecute financial and cyber crimes involving cryptocurrencies.By equipping investigators with the knowledge and skills they need, Chainalysis aims to empower them to effectively investigate and disrupt criminal activity in the crypto space.

Legislative and Regulatory Changes

Recognizing the growing threat of crypto crime, governments around the world are taking steps to strengthen their legislative and regulatory frameworks.This includes enacting laws that provide law enforcement agencies with greater powers to investigate and prosecute crypto-related offenses.

For example, some jurisdictions are introducing legislation that allows authorities to identify and seize digital assets linked to organized crime. The blockchain data platform delved into the topic in its 2025 State of Cryptocurrency Investigations Survey, with 74% of respondents indicating their agencies were under-equipped to investigate cryptocurrency-related crime.Others are focusing on strengthening anti-money laundering (AML) regulations to prevent the use of cryptocurrencies for illicit purposes.These legislative and regulatory changes are essential for creating a more secure and transparent crypto ecosystem.

In the United States, the IRS is also ramping up its efforts to combat tax evasion in the crypto community.With hundreds of crypto-involved cases in the pipeline, the agency is sending a clear message that it is taking crypto-related tax compliance seriously.

Addressing Common Concerns and Misconceptions

The rise of cryptocurrencies has also led to several misconceptions and concerns, particularly among those unfamiliar with the technology.It's important to address these concerns and provide accurate information to promote a better understanding of the crypto landscape.

Are Cryptocurrencies Primarily Used for Criminal Activities?

As mentioned earlier, the Chainalysis survey respondents largely rejected the notion that cryptocurrencies are primarily used by criminals.While cryptocurrencies can be used for illicit purposes, they also have legitimate uses, such as facilitating cross-border payments, providing access to financial services for the unbanked, and supporting innovative applications in various industries.

Are Cryptocurrencies Untraceable?

Contrary to popular belief, cryptocurrencies are not entirely untraceable. According to the study, most (74%) of agencies felt they were not equipped well enough for crypto-related investigations. But they still admit that crypto will play a role in positively pushing our financial systems. The respondents likewise rejected the notion that criminals mainly used cryptocurrencies.While transactions may be pseudonymous, they are recorded on the blockchain, which is a public and transparent ledger. cointelegraph.com: Law enforcement and regulatory agencies investigating cryptocurrency-related incidents need better data, training and private partnerships, according to an industry survey conducted by Chainalysis.With the right tools and expertise, it is possible to track the flow of funds and identify the parties involved in cryptocurrency transactions.

Are Cryptocurrencies a Threat to the Financial System?

While cryptocurrencies pose some challenges to the traditional financial system, they also have the potential to improve efficiency, reduce costs, and promote financial inclusion.By embracing innovation and adapting to the changing landscape, the financial system can harness the benefits of cryptocurrencies while mitigating the risks.

Best Practices for Crypto Investigations

For public agencies embarking on or expanding their crypto investigation capabilities, adopting best practices is crucial for maximizing effectiveness and ensuring compliance with legal and ethical standards.

• Establish a Dedicated Crypto Investigation Unit: Creating a specialized unit with expertise in blockchain technology, digital forensics, and cryptocurrency investigations can streamline the process and improve efficiency.
• Develop Standardized Procedures and Protocols: Implementing clear procedures and protocols for handling crypto-related investigations can ensure consistency, accountability, and compliance with legal requirements.
• Provide Ongoing Training and Education: Investing in ongoing training and education for investigators can help them stay up-to-date on the latest trends, technologies, and techniques in crypto crime investigations.
• Collaborate with Other Agencies and Experts: Fostering collaboration with other law enforcement agencies, regulatory bodies, and private sector experts can provide access to valuable resources and expertise.
• Maintain a Strong Ethical Framework: Adhering to a strong ethical framework and respecting privacy rights are essential for maintaining public trust and ensuring the integrity of crypto investigations.

The Future of Crypto Crime Investigations

The landscape of crypto crime is constantly evolving, and public agencies must adapt to stay ahead of the curve.This requires a commitment to innovation, collaboration, and continuous improvement.The future of crypto crime investigations will likely involve:

• Increased Use of Artificial Intelligence (AI): AI can be used to automate tasks, analyze large datasets, and identify patterns indicative of criminal activity.
• Greater Focus on Decentralized Finance (DeFi): DeFi platforms are becoming increasingly popular, and public agencies need to develop strategies for investigating crimes involving DeFi protocols.
• Enhanced Cross-Border Cooperation: Crypto crime is a global phenomenon, and effective investigation requires close collaboration between law enforcement agencies across borders.
• Improved Regulatory Frameworks: Clear and consistent regulatory frameworks are essential for providing legal certainty and preventing the misuse of cryptocurrencies.

Conclusion: Bridging the Crypto Investigation Gap

The Chainalysis survey’s revelation that 74% of public agencies feel under-equipped for crypto investigations is a wake-up call.It highlights the urgent need to bridge the gap between the growing sophistication of crypto crime and the resources available to law enforcement and regulatory agencies.Investing in training, technology, and public-private partnerships is crucial for equipping public agencies with the tools they need to effectively investigate and prosecute crypto crimes. According to the survey results, 74% of respondents indicated that they felt their agencies were inadequately equipped to explore and investigate crime related to digital assets. Of this, many noted that additional training, resources, and tools would be helpful in their investigations.The rapid evolution of the crypto landscape demands a proactive and adaptable approach, and the steps taken today will determine the success of efforts to combat crypto crime in the future. 2.8K subscribers in the cryptopricesalerts community. Our trackers will post any relevant info about cryptos. Wanna see more? See you onIgnoring this issue poses a significant threat to the integrity of the financial system and the safety of the public.

By taking decisive action to address the challenges outlined in this article, public agencies can become better equipped to investigate crypto crimes and protect society from the risks associated with digital assets. Related: 74% of public agencies feel under-equipped for crypto investigations: Report. The team also claims to have responded to more than 27,000 law enforcement requests since November with an average response time of three days.The key takeaways include:

• Prioritize training and education for law enforcement personnel.
• Invest in advanced blockchain analytics tools and platforms.
• Foster collaboration with private sector experts.
• Support legislative and regulatory changes that enhance investigative capabilities.

The future of crypto crime investigations depends on the commitment of public agencies to adapt, innovate, and collaborate. The state s authorities are going to be given greater powers to identify and seize digital assets linked with organized crime, under a new bill introduced to parliament this week.By working together, we can create a safer and more secure crypto ecosystem for everyone.