“Bitcoin”: An Asset in the Digital Era and Utilization as a Criminal Tool

Abstract

The objective of this investigation is to study the pattern and utilization of Bitcoin as a criminal tool. Documentary research is used to study the relevant literature. The findings show that Bitcoin has been used as a criminal tool in two ways, namely, 1) as a direct tool for different purposes, including illicit goods and services trading, ransom, fundraising by insurgent groups, and money laundering; and 2) as an indirect tool by using the name “Bitcoin” as a bait to trick victims to invest money in Bitcoin, which is in fact similar to a Ponzi Scheme. This type of crime is a new threat requiring awareness across all sectors as well as effective measures to handle it in a timely manner.