Danish police have developed a method to identify individuals using bitcoin on the deep web

The following is a translation i made of page 20 and 21 of this document by the danish police. I did my best with the translation, hope it's alright.

TL;DR:
Danish police have found a way to identify individuals using the Bitcoin currency on the deep web. They have shared the information with the FBI, DEA and all Europol countries, and probably some more. They expect to be able to take down international drug syndicalists, (thats what they said) using this new method. A couple of danish individuals have already been arrested for purchasing drugs on the deep web.

Introduction
Danish police was remarkably surprised, when they last year could present Europol to a breakthrough in IT, that makes it possible to identify criminals who trade with narcotics and weapons on ”the dark web”. So far the criminals have been able to successfully hide their footprints by making use of the digital currency “Bitcoin”, but thanks to Danish police that is no longer a risk-free method, as proven by two sentences from Denmark.

The police-hiveminds curiosity and understanding of connections combined with the scientist’s thoroughness and deep insight. That was the cocktail necessary to reach a breakthrough in the hunt on criminals, making illegal transactions on the internet and paying in the digital currency “Bitcoin”. The discoveries have been shared with the Europol-countries, FBI, DEA and more.
Our main focus is to get the method spread to every country in the world, so we can finally start chasing the international criminal syndicates. We don’t want to shine in Denmark alone, because we know how we can breathe the criminals on their neck, on the “Dark Web”, says Kim Aarenstrup, central leader for the National Police Cyber Crime Center (NC3).

High-teach team at work
Not long ago, police research came to an end if the criminals were using bitcoins when they traded illegal goods, typically on the “Dark Web”. The police didn’t have the necessary knowledge or tools to identify who were behind the transactions. Even though the indices could be strong against one specific individual, the necessary proof couldn’t always be raised in court.
After a meeting in Europol in 2015 about bitcoin, the central chief Kim Aarenstrup returned with a smile on his face to his high-tech team in NC3, consisting of a mixture between police-people and IT-people. On the meeting in Europol, Kim had been presented to a model that was able to analyze and find connections between transactions with bitcoin – so-called blockchains. Though without being able to identify who was behind the transactions.

  • “I asked my people to take a closer look at the method. They scratched their necks and then proceeded to go in-depth and research the topic”, says Kim Aarenstrup. The police- and IT-people was by cooperating able to further develop the concept, beyond the already existing software-tools on the market, among others some analytical tools.
  • “It is technically very advanced, but I won’t try to explain the technical details of the method, because that would mean helping the criminals”, Kim says with a smile on his lips.

Posted Aug 17, 2017, 8:05 PM UTC

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