Coinbase’s Chief Legal Officer (CLO), Paul Grewal, recently emphasized the critical role blockchain transparency plays in supporting law enforcement efforts to fight the rising tide of street-level digital crimes.
As criminals increasingly target mobile devices rather than traditional cash or cards, the crypto exchange is leveraging blockchain’s inherent traceability to help track stolen funds and dismantle crime rings.
Grewal detailed how criminals now steal unlocked smartphones to gain rapid access to victims’ financial apps, including banking services, payment platforms, and crypto wallets. Unlike conventional theft, where stolen cash vanishes without a trace, cryptocurrency transactions leave a permanent, public record on the blockchain. This visibility enables Coinbase to trace illicit fund movements, identify suspicious patterns, and assist law enforcement agencies in investigations.
“Crimes involving mobile devices and digital wallets are no longer hypothetical—they are happening in cities worldwide,”
Grewal noted. The speed at which funds can be transferred after a phone is compromised makes swift action essential.
Coinbase is not alone in this fight. Other major crypto exchanges are stepping up their security and compliance measures to curb crime. Binance, for example, has enhanced its know-your-customer (KYC) protocols and increased collaboration with global law enforcement. Bybit recently partnered with Zodia Custody to isolate institutional clients’ assets from the main exchange, reducing internal risks and protecting investors from potential misuse or failures.
These initiatives reflect a broader industry commitment to proactively combat criminal activity by leveraging both technology and regulatory cooperation.
The transparent nature of blockchain technology is proving to be a formidable defense against digital theft. Every transaction is permanently recorded, making it possible to trace stolen funds even after sophisticated hacks. This was evident when Bybit traced part of the $1.4 billion stolen in its February hack.
As digital theft evolves, allowing criminals to empty bank accounts, transfer cryptocurrencies, and change passwords via stolen phones—the crypto industry’s growing partnerships with law enforcement and improved security measures are helping to turn the tide. Through transparency and cooperation, exchanges like Coinbase are working to protect users and maintain trust in the crypto ecosystem.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
