A Criminological Analysis of Cryptocurrencies and the Challenges of Prosecuting Blockchain-Based Crimes

Abstract

The rapid rise of cryptocurrencies and blockchain technology has reshaped global financial systems while simultaneously creating unprecedented opportunities for criminal exploitation. This narrative review examines the criminological dimensions of crypto-crime by analyzing the technological characteristics of decentralized digital assets, offender motivations, behavioural patterns and the systemic challenges faced by law enforcement. The article identifies major typologies of blockchain-enabled crime—including money laundering, fraud, ransomware, darknet transactions, unauthorized mining and exchange breaches—and demonstrates how offenders leverage anonymity, transactional speed and jurisdictional ambiguity to facilitate illicit activity. Through a criminological lens, the review explores how rational decision-making, opportunity structures and transnational collaboration shape offender behaviour in digital environments. The analysis also highlights significant obstacles to detection and prosecution, such as evidentiary limitations, privacy-enhancing technologies, cross-chain obfuscation, inconsistent regulatory frameworks, smart contract complexity and the lack of harmonized global standards. In response to these challenges, the review outlines key policy frameworks and enforcement strategies, including advancements in blockchain forensics, AI-based transaction tracing, AML/CFT regulations, licensing regimes for digital asset service providers, FATF-aligned international standards, cross-border investigative mechanisms and the development of specialized cybercrime units. The review concludes that addressing crypto-crime requires a multidisciplinary, globally coordinated approach that integrates technological innovation, legal reform and enhanced institutional capacity. As blockchain ecosystems continue to evolve, the complexity and scale of digital criminality will increase, making comprehensive, forward-looking strategies essential for effective governance and crime prevention.