Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

Which is an example of an obfuscation pattern involving cryptoassets?

1. Compromising login credentials through identity theft.

2. Opening multiple cryptoasset accounts at the same exchange.

3. Combining illicit transactions with legitimate transactions.

4. Purchasing cryptoassets using dollar cost averaging.

The correct answer is: Combining illicit transactions with legitimate transactions.

The choice that exemplifies an obfuscation pattern involving cryptoassets is combining illicit transactions with legitimate transactions. This method serves to obscure the illicit nature of certain transactions by mingling them with legitimate ones, thus making it difficult for authorities and watchdogs to identify suspicious activity. This practice capitalizes on the complexity of tracking transactions, especially in decentralized or semi-anonymous environments like those often found in cryptoasset exchanges. Engaging in this pattern can help criminals disguise the flow of funds, enabling them to blend illegal gains with clean funds or to present a facade of legitimate trading activity. Such obfuscation techniques are a focal point in anti-money laundering (AML) efforts and are critical for law enforcement to understand in order to develop effective countermeasures. The other scenarios suggested do not fundamentally focus on the concept of obfuscation in relation to cryptoassets. Compromising login credentials addresses cybersecurity and identity theft rather than obfuscation in financial transactions. Opening multiple cryptoasset accounts could indicate an attempt to diversify investments but does not inherently imply a strategy to obscure or disguise funds. Purchasing cryptoassets using dollar cost averaging is a standard investment method that involves regular purchases over time and lacks the intent to conceal or obscure illicit actions.