This study aimed to identify where individuals turn in order to cash out or transmit bitcoins (BTC) acquired from illicit entities and to discover typologies for criminals “laundering” bitcoins. A true person-to-person payment using bitcoins will leave a record of that transaction and the addresses involved (analogous to account numbers) in the blockchain. This record can be an effective tool for law enforcement. Therefore, for the purpose of the study, we focus on those platforms and intermediaries that transmit funds on behalf of users by either cashing out bitcoins to a legal tender fiat currency, converting them to another cryptocurrency, or transmitting them to another Bitcoin address in such a way that the flow of funds cannot be viewed and traced directly on the blockchain. We call these platforms “conversion services” and they include virtual currency exchanges, mixers, online gambling sites that accept cryptocurrency, Bitcoin ATMs, and other services.
