Disappearance of Nancy Guthrie Highlights the Need for Enhanced Cryptocurrency Crime Tracking
Former hostage negotiator Dan O’Shea discusses the ongoing investigation into the alleged abduction of Nancy Guthrie on day 10 of the search on ‘Mornings With Maria.’
The disappearance of Nancy Guthrie has sparked renewed scrutiny regarding the traceability of cryptocurrencies, particularly in light of reports alleging ransom notes demanding payment in bitcoin.
At 84 years old, Guthrie was last seen on February 1, when authorities suspect she was kidnapped from her home. As the investigation enters its second week, multiple ransom notes have surfaced, all reportedly requesting payment in bitcoin.
Bitcoin has long been associated with criminal activity, especially following the 2013 dismantling of the Silk Road online black market, where it was used to purchase illegal goods. However, the evolution of the digital asset industry and increased regulatory oversight have made it more challenging for criminals to exploit these currencies.
“Every single bitcoin transaction is recorded on a public ledger called the blockchain, so when it comes to tracing transactions, following the money, you have a perfect record with bitcoin,” stated Perianne Boring, founder and chair of the Digital Chamber, during an interview with FOX Business. The Digital Chamber advocates for the use of digital assets and blockchain technologies.
EX-FBI OFFICIAL FLAGS POSSIBLE SCAM AS THIRD ALLEGED NANCY GUTHRIE LETTER EMERGES
Bitcoin transactions are recorded on the blockchain, which can be tracked by the public and law enforcement, which has more sophisticated tools. (Jakub Porzycki/NurPhoto via Getty Images)
Boring emphasized that the blockchain serves as a public ledger, accessible for anyone to audit. “Anyone can look up a specific bitcoin wallet address and see every transaction that’s come in and out from the very beginning,” she explained.
“There’s no way to hide those tracks. This is actually an incredibly powerful tool for law enforcement. In fact, it’s a way better tool for law enforcement than it is for criminals, which is why we really don’t see a lot of criminal activity with bitcoin anymore now that the industry has matured,” Boring added.
SEE THE PHOTOS: ARMED MAN AT NANCY GUTHRIE’S HOME
FBI Director Kash Patel shared still images recovered from a doorbell camera outside Nancy Guthrie’s residence on Tuesday, Feb. 10. (@FBIDirectorKashPatel via X)
Boring noted that while criminals may “self-custody” their bitcoin without a third party, they still face challenges when attempting to convert the crypto into fiat currency.
“If a ransom was paid to a bitcoin wallet and the criminal has control of that money, that’s totally possible. But at some point, they’re going to have to transfer that money into U.S. dollars or to yen or to euros or whatever currency they want so they can use the money,” she explained.
“The companies that provide that money exchange service are all regulated businesses globally… you have to use a regulated financial institution like Coinbase to do that, and at that point, you’re at a [know your customer] entity so we would know the identity of the person who’s trying to exchange the bitcoin that’s linked to the ransom payment,” Boring added.
NANCY GUTHRIE CASE: WHY CRIMINALS ARE TURNING TO CRYPTOCURRENCY FOR RANSOMS
The bitcoin and digital assets industry has developed advanced track and trace technologies, Boring said. (Photo illustration by Chesnot/Getty Images)
Criminals sometimes attempt to evade the traceability of bitcoin by transferring it from a self-custodied crypto wallet to multiple wallets. However, these transactions remain traceable by law enforcement. Boring highlighted that this tactic has led to the rise of mixing services in the crypto space, which combine funds from various sources before redistributing them.
“That’s one way to conceal it. But even that, you get all the money that goes into a mixer; you can see all the crypto that comes out of it, so there’s still traceability on it,” she explained. “Law enforcement is very, very sophisticated with being able to track and trace all transactions on the blockchain.”
Boring also mentioned that within the crypto economy, businesses have developed track-and-trace software utilized by compliance officers at crypto firms and law enforcement agencies.
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“This is a very sophisticated effort that’s been built over a decade. There is a lot of coordination that happens with the crypto exchanges and law enforcement to track and trace illicit activity in this space, and it’s very effective and very efficient,” Boring concluded.
She added that the Justice Department has successfully seized large amounts of crypto from criminals, stating, “Law enforcement has really done a very good job of helping police criminals that are abusing this technology for nefarious purposes and keeping this ecosystem safe.”
Former hostage negotiator Dan O’Shea discusses the ongoing investigation into the alleged abduction of Nancy Guthrie on day 10 of the search on ‘Mornings With Maria.’
The disappearance of Nancy Guthrie has sparked renewed scrutiny regarding the traceability of cryptocurrencies, particularly in light of reports alleging ransom notes demanding payment in bitcoin.
At 84 years old, Guthrie was last seen on February 1, when authorities suspect she was kidnapped from her home. As the investigation enters its second week, multiple ransom notes have surfaced, all reportedly requesting payment in bitcoin.
Bitcoin has long been associated with criminal activity, especially following the 2013 dismantling of the Silk Road online black market, where it was used to purchase illegal goods. However, the evolution of the digital asset industry and increased regulatory oversight have made it more challenging for criminals to exploit these currencies.
“Every single bitcoin transaction is recorded on a public ledger called the blockchain, so when it comes to tracing transactions, following the money, you have a perfect record with bitcoin,” stated Perianne Boring, founder and chair of the Digital Chamber, during an interview with FOX Business. The Digital Chamber advocates for the use of digital assets and blockchain technologies.
EX-FBI OFFICIAL FLAGS POSSIBLE SCAM AS THIRD ALLEGED NANCY GUTHRIE LETTER EMERGES
Bitcoin transactions are recorded on the blockchain, which can be tracked by the public and law enforcement, which has more sophisticated tools. (Jakub Porzycki/NurPhoto via Getty Images)
Boring emphasized that the blockchain serves as a public ledger, accessible for anyone to audit. “Anyone can look up a specific bitcoin wallet address and see every transaction that’s come in and out from the very beginning,” she explained.
“There’s no way to hide those tracks. This is actually an incredibly powerful tool for law enforcement. In fact, it’s a way better tool for law enforcement than it is for criminals, which is why we really don’t see a lot of criminal activity with bitcoin anymore now that the industry has matured,” Boring added.
SEE THE PHOTOS: ARMED MAN AT NANCY GUTHRIE’S HOME
FBI Director Kash Patel shared still images recovered from a doorbell camera outside Nancy Guthrie’s residence on Tuesday, Feb. 10. (@FBIDirectorKashPatel via X)
Boring noted that while criminals may “self-custody” their bitcoin without a third party, they still face challenges when attempting to convert the crypto into fiat currency.
“If a ransom was paid to a bitcoin wallet and the criminal has control of that money, that’s totally possible. But at some point, they’re going to have to transfer that money into U.S. dollars or to yen or to euros or whatever currency they want so they can use the money,” she explained.
“The companies that provide that money exchange service are all regulated businesses globally… you have to use a regulated financial institution like Coinbase to do that, and at that point, you’re at a [know your customer] entity so we would know the identity of the person who’s trying to exchange the bitcoin that’s linked to the ransom payment,” Boring added.
NANCY GUTHRIE CASE: WHY CRIMINALS ARE TURNING TO CRYPTOCURRENCY FOR RANSOMS
The bitcoin and digital assets industry has developed advanced track and trace technologies, Boring said. (Photo illustration by Chesnot/Getty Images)
Criminals sometimes attempt to evade the traceability of bitcoin by transferring it from a self-custodied crypto wallet to multiple wallets. However, these transactions remain traceable by law enforcement. Boring highlighted that this tactic has led to the rise of mixing services in the crypto space, which combine funds from various sources before redistributing them.
“That’s one way to conceal it. But even that, you get all the money that goes into a mixer; you can see all the crypto that comes out of it, so there’s still traceability on it,” she explained. “Law enforcement is very, very sophisticated with being able to track and trace all transactions on the blockchain.”
Boring also mentioned that within the crypto economy, businesses have developed track-and-trace software utilized by compliance officers at crypto firms and law enforcement agencies.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“This is a very sophisticated effort that’s been built over a decade. There is a lot of coordination that happens with the crypto exchanges and law enforcement to track and trace illicit activity in this space, and it’s very effective and very efficient,” Boring concluded.
She added that the Justice Department has successfully seized large amounts of crypto from criminals, stating, “Law enforcement has really done a very good job of helping police criminals that are abusing this technology for nefarious purposes and keeping this ecosystem safe.”
