Countering the Laundering of Criminally Obtained Assets Through the Use of Cryptocurrency Mixing Technologies

Abstract

The article provides a comprehensive scientific study on the functioning mechanisms of cryptocurrency mixers, which are examined as a leading tool for anonymization, obfuscation, and masking of financial flows within the modern structure of crime. Particular attention is paid to analyzing the role of these services in the processes of laundering (legalization) of proceeds of crime, financing of terrorist activities, and tax evasion.         

The paper provides a detailed analysis of the dynamics of the rapid growth of the global crypto-assets market, as well as key trends in its illicit use by transnational organized crime groups. Specific emphasis is placed on the transformation of conspiracy methods against the backdrop of tightening global regulatory pressure and the implementation of stringent regulatory frameworks, notably the MiCA Regulation in the European Union and the Genius Act in the United States.

Based on a thorough analysis of typological studies conducted by the State Financial Monitoring Service of Ukraine and current domestic judicial practice for 2024–2025, the article highlights practical cases involving crypto mixers in cyber fraud schemes (specifically following the "Man in the middle" principle), shadow capital flight, and the financing of subversive activities by the aggressor state's intelligence services.

The scientific novelty of the study lies in the fact that it is virtually the first in domestic science to comprehensively describe the phenomenon of cryptocurrency mixers and reveal the inner mechanics of their operation in detail. The authors explained the essence of such activities in plain terms and drew attention to the fact that these tools are already being actively used within the territory of Ukraine.