Stablecoin

What it may indicate

A stablecoin holds a fixed value, usually pegged to an ordinary currency such as the euro or the dollar. Because the price stays stable, stablecoins are often used to move value quickly. They appear regularly in fraud cases, because fraudsters can use them to move stolen funds without being affected by price swings.

What is a stablecoin?

A stablecoin is a crypto coin that ties its value to an underlying value, for example one dollar per coin. Well-known examples are USDT and USDC. The peg is maintained with reserves or with rules built into the software. As a result a stablecoin behaves differently from, say, bitcoin, whose price can move sharply.

Why do fraudsters often use stablecoins?

Because the value stays stable, fraudsters can move amounts without the risk of the price falling in the meantime. Stablecoins are also fast and easy to send on many platforms, which makes them attractive for funnelling money.