EU backs 3-year project to curb crime involving digital currencies and blockchain

The European Union is backing a project that aims to curb criminals and attackers from using blockchain technology to avoid law detection, while maintaining the privacy rights of legitimate users.

The project, titled TITANIUM – Tools for the Investigation of Transactions in Underground Markets, will see participation of a group of fifteen consortium members from seven European countries. The partners in the TITANIUM consortium include:

AIT Austrian Institute of Technology GmbH, Bundeskriminalamt (Germany), Coblue Cybersecurity (Netherlands), Countercraft S.L. (Spain), dence GmbH (Germany), Universität Innsbruck (Austria), INTERPOL (International Criminal Police Organization), Karlsruhe Institute of Technology (Germany), Ministry of the Interior (Austria), Ministry of the Interior (Spain), National Bureau of Investigation (Finland), TNO (Netherlands), Trilateral Research Ltd. (UK), University College London (UK), VICOMTECH-IK4 (Spain).

The researchers, which includes four law enforcement agencies (LEAs) and INTERPOL, aim to develop and implement tools to look into criminal transactions, detect anomalies in their usage, and identify money-laundering techniques. They will also conduct training activities in order to develop skills and knowledge among EU law enforcement agencies.

“The researchers are in a consortium undertaking a three-year, €5 million project, funded by the European Union aimed at developing technical solutions for investigating and mitigating crime and terrorism involving virtual currencies and underground market transactions”, the official release said, while noting the recent worldwide cyberattack in which the attackers demanded the ransom in bitcoin.

Project co-ordinator Ross King, a senior scientist at the AIT Austrian Institute of Technology GmbH, said that in order to counter criminal and terrorist activities related to virtual currencies and darknet markets, it was necessary to develop efficient and effective forensics tools for ensuring reasonable use of data from different sources including virtual currency ledgers, online forums, p2p networks of underground markets, and seized devices.

“The consortium will analyse legal and ethical requirements and define guidelines for storing and processing data, information, and knowledge involved in criminal investigations without compromising citizen privacy”, he said.