How Bitcoin’s Public Ledger Became a Law Enforcement Goldmine

We all thought Bitcoin was the ideal secret handshake for online deals. Turns out we were totally wrong about that. Wired’s Greenberg (who happens to be a cybersecurity journalit and author at the publication) has reminded everyone that Bitcoin is really not as anonymous as we thought.

Recent happenings have shown us that the digital money we thought was untouchable is actually an open book. And law enforcement has become its most avid reader.

From Anonymous Dream to Transparent Nightmare

When the tech world was abuzz in 2011 following the emergence of blockchain technology, Wired correspondent Andy Greenberg was among those who believed Bitcoin could keep users totally anonymous. But at Bitwarden’s Open Source Security Summit 2025, he set the record straight. He admitted, “I slowly realized I was totally wrong about Bitcoin. It was actually the opposite of untraceable.”

So, what changed? He met Tigran Gambaryan. Gambaryan is a criminal investigator with the IRS. Starting around 2014, he and a company called Chainalysis exploited a simple truth. Bitcoin’s digital record system, the blockchain, is permanent and public.

This gave investigators “even more power to track financial crimes than traditional banking systems.” Think about that. The very thing meant to free money from banks became a better tracking tool than the banks themselves.

Catching Crooks on the Blockchain

Gambaryan’s team used this power to make the three biggest money seizures in U.S. Justice Department history. They followed the digital trail of 650,000 Bitcoins stolen from the Mt. Gox exchange straight to Russian hackers.

They caught corrupt DEA agents who took Bitcoin bribes on the illegal marketplace Silk Road. And they shut down the massive dark web drug operation AlphaBay. They did this by following the money trail all the way to Bangkok.

This all leads to an obvious question: If it’s so simple to trace these ransomware attacks, why are billions still being stolen? The reason is kind of annoying – knowing who’s doing it doesn’t mean you can actually catch them.

As Greenberg explains, “You can identify the criminals with amazing accuracy thanks to blockchain technology.” But if they are in countries like Russia or North Korea, Western police cannot reach them. They can still avoid punishment even when their digital footsteps are clear. This jurisdictional wall is what allows massive, brazen operations to thrive, like the recent revelation that Russian dark web markets laundered a staggering $2 billion through crypto exchanges, a clear demonstration of how traceable funds can still flow with impunity.

A Global Crackdown on Crypto Crime

Fighting crime involving crypto is changing fast around the world. Recent news stories show how common these efforts have become, with law enforcement launching increasingly sophisticated, coordinated strikes like the recent global ‘Operation Endgame‘ takedown that disrupted major cybercrime networks behind massive ransomware and infostealer campaigns.

Also, not too long ago, Europol led a big international operation that shut down Kidflix. This was a dark web platform that used cryptocurrency to fund child exploitation. The site had about 91,000 horrific videos. Members paid via crypto, sometimes earning tokens by contributing new abusive material.

Operation Stream saw 38 countries collaboratively identify 1,393 suspects and led to the arrest of 79 individuals. 39 children were rescued from an abusive situation as a result, which is the best outcome.

In the UK, gang members were jailed for exploiting the war in Ukraine. They sold vehicles and laundered the profits through cryptocurrency. The authorities successfully evidenced that they had laundered £6.63 million. Furthermore, Police Scotland reported that crypto-related crime has increased by 2,000% since 2019. The police are improving what they can do by getting tracking tools to watch blockchain deals. They are aligning with global law enforcement in a new arms race against digital crime.