Coinbase exchange’s Chief Legal Officer (CLO), Paul Grewal, has called attention to the role of blockchain transparency in helping law enforcement trace stolen funds and respond to the growing form of street-level crime. This update becomes necessary as digital crimes have taken a sharp turn recently, with criminals now targeting mobile devices instead of cash or cards.
Coinbase and Efforts to Fight Street Crime
In a detailed report, the Coinbase CLO shared how street crimes have taken a different turn. Criminals now target mobile phones instead of wallets or cards. By stealing unlocked phones, they gain quick access to victims’ financial apps, including banking, payment services, and crypto-wallets. Paul Grewal noted that these crimes are no longer rare or futuristic. They are already happening in cities across the world.
According to the update, the crypto exchange has worked closely with law enforcement to investigate such cases. Once a criminal accesses a phone, funds can be moved within minutes.
However, crypto leaves a visible record, unlike cash, which disappears without a trace. Every transaction is recorded publicly on the blockchain, allowing Coinbase to trace stolen funds, report patterns, and help identify those responsible.
Paul Grewal also stressed that Coinbase is not acting in isolation. Other major exchanges, including Binance, are actively improving their systems. Binance, for instance, has introduced stronger verification checks and is collaborating more closely with enforcement agencies. These efforts reflect a growing understanding that the crypto space must fight crime proactively.
Beyond Coinbase, Crypto Exchanges Follow The Trend
While Coinbase focuses on tracing and investigations, other exchanges are strengthening their security structures.
Bybit recently partnered with Zodia Custody to safeguard its institutional clients from scams. Reports noted that their new arrangement keeps funds separate from the main exchange but still available for trading.
This method reduces internal risks and protects investors from failures or misuse within the exchange.
Binance has taken similar steps to improve security and compliance. The exchange has boosted its know-your-customer process and increased cooperation with law enforcement worldwide.
Crypto Crime Evolution
It is important to stress that digital theft is evolving quickly. For example, a stolen phone now grants criminals full access to someone’s financial life. It gets more complicated as criminals no longer need stolen cards.
This is because they can empty a person’s bank account, transfer crypto, and even change passwords.
Still, the transparency of the blockchain is proving to be a useful defence. Every move is recorded and traceable. For context, this was how some of the funds were traceable when Bybit suffered a hack worth $1.4 billion in February.
In addition, with stronger partnerships and tighter controls, the crypto industry is beginning to turn the tide on crime, using the tools built into the system to protect users and uphold trust.
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