Unmasking cryptocrime: Reframing criminality in cryptocurrency markets

• In Event: Crypto & Darknet

Abstract

The increasing prevalence of cryptocurrency markets has given rise to diverse illicit activities, commonly grouped under the term cryptocrime. However, existing literature and industry reports often fail to establish a clear classification framework for these crimes, instead presenting fragmented typologies. While some scholars differentiate between crypto-facilitated and crypto-enabled crimes, these distinctions remain ambiguous and insufficient for a comprehensive understanding. The speaker will deliver robust conceptualization of criminality within cryptocurrency markets, shifting the focus from crypto-specific categorizations to structural, institutional, and technical dimensions. The proposed classification system categorizes cryptocurrency-related crimes based on their functional characteristics rather than their exclusivity to the crypto space. The framework distinguishes between: (1) cryptocurrencies as a tool for illicit transactions, further divided into large-scale asset transfers (e.g., money laundering, terrorism financing) and retail-level transactions (e.g., darknet markets, ransomware payments); (2) investment frauds, including primary market frauds (e.g., fake issuances, “rug pulls”) and secondary market frauds (e.g., Ponzi schemes, market manipulation); (3) social engineering cybercrimes, such as phishing and scam schemes; and (4) crimes targeting crypto market infrastructure, such as cryptojacking and miner extractable value frauds.

Author

• Kitti Dr. Mezei, Senior Research Fellow, HUN-REN Centre for Social Sciences Institute for Legal Studies