The Public Prosecutor’s Office in Antofagasta, located in northern Chile, has published a report on the probable use of cryptocurrencies by overseas criminal organizations to conceal unlawful assets.
Investigations have revealed evidence that these businesses may be using cryptocurrency to conceal their financial operations, triggering a robust response from Chilean law enforcement.
Crypto crime in LATAM: Venezuelan gangs and cryptocurrencies
“Cryptocurrencies and Venezuelan gangs represent a new dark shadow of crime,” says Juan Carlos Bekios, Regional Prosecutor of Antofagasta, in a press statement.
He mentioned a striking case where, during a massive raid on a violent Venezuelan gang involved in criminal acts like kidnapping and drug trafficking, only 70,000 pesos (approximately $90) were seized.
The typical assets like cars, homes, and businesses normally associated with such violent groups were absent, because their primary motivation is to quickly collect and move assets.
“However, the situation sounds strange,” he continued, “when we take into account the type of these organizations. For example, their activities describe them as being very smart in keeping their money hidden away. Their principle of integration suggests that cryptocurrencies are one of their chief instruments.”
The shift to sophisticated crime
The ongoing transformation of criminal practices has demanded the necessary reorganization of police services, which have had to adapt their workflows to tackle organized crime.
The Antofagasta Prosecutor’s Office has already observed a concerning trend: criminals are increasingly using digital coins instead of traditional banking systems to evade legal scrutiny.
“The panorama of crime has altered dramatically,” commented Bekios. Syndicates are now more adept at moving and concealing their funds.
In former times, cash was abundant and we often see it, but that’s history. The gangs enjoy confidentiality through cryptocurrencies, thus we are obliged to investigate these operations thoroughly.
Establishing a special task force
As a reaction to these burgeoning dangers, the Antofagasta Prosecutor’s Office has commenced preparations for the escalation of crypto-related investigations.
An official letter stated that a specially composed team would be created to meet this pressing demand, led by a prosecutor from the Office of Analysis and Complex Criminality (FACC).
“We target not directly at incidental findings of transactions with cryptocurrencies but at preventive actions that will determine what kind of organizations use these methods nationally or transnationally,” Bekios said, pointing to the importance of examining the flow of these financial channels to fully complete policing efforts.
Confronting challenges
Bekios noted that even though the prosecution had confiscated some crypto-assets in the past, future investigations required a more efficient approach.
“We aim to expand beyond the conventional asset with tech evolution. It is essential that we acquire skills in digital currency tracking as we align with concurrent technological innovations,” he stated.
This adjustment is part of a larger trend in which law enforcement agencies are treating cryptocurrencies not just as a means of legitimate transactions, but also as a vehicle for money laundering.
The increase in capabilities will help the Antofagasta Prosecutor’s Office connect the technological and investigative sides to achieve the most effective outcome.
The road to ultimate digital crime control
The warning given by the Antofagasta Prosecutor’s Office should be a serious wake-up call to the world regarding the side effects of globalization and digital technology in crime.
The increase in cryptocurrency use among criminal syndicates necessitates that law enforcement be supported by proactive measures and specialized training.
Reducing ongoing digital crime, as Chile is currently facing, largely depends on the establishment of teams capable of countering cryptocurrencies’ illicit use, thereby protecting the integrity of both national and international financial systems.
Strong collaboration, innovative tactics, and firm tracking will be crucial in dismantling these complex networks and protecting society from the far-reaching effects of organized crime.
Chile ranks second in cryptocurrency trading volume
Chile comes in at the second spot on the global list for cryptocurrency trading volume versus average monthly income with a stunning 94.50%.
Argentina is the closest competitor with 55.86%, while Colombia and Venezuela report figures of 20.60% and 48.34%, respectively.
This ranking, which was released by Cointelegraph en Español in mid-2024, marks a decisive shift in the Latin American economy, where cryptocurrencies are no longer just speculation but an irreplaceable part of finance and a pivotal component of the Region’s economic systems.
In a wide-ranging examination carried out by CoinWire, called ‘Which Countries Trade the Most?’, it was pointed out that the only country that beats Chile is Brazil in the predicted trading volumes for 2024, which are set to exceed $105 billion.
The report praised Chile not only for the mass volumes of trade but also for the significant level of participation of its citizens in cryptocurrency.
This trend is indicative of society’s move toward digital currencies, which are being seen increasingly as a tool for investment, especially when the community goes through some tumultuous experiences regarding the economy.
Furthermore, the research emphasizes that the people of Chile transfer a substantial segment of their earnings to cryptocurrency expenses with an average of $447 per month.
This number announces that they spend 65% of their average monthly salaries on it, which is in line with what they typically pay as a rent; thus highlighting the significance of cryptocurrencies in their day-to-day financial decisions.
In the face of the global crypto market dynamics, massive personal investments by individuals serve not only as a catalyst for the need for correct regulatory measures but also for eye-catching law enforcement, especially concerning the threats of crypto crimes by criminal gangs.
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