Coinbase exchange’s CLO, Paul Grewal, has called attention to the role of blockchain transparency in helping law enforcement

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 exchange's Chief Legal Officer (CLO), Paul Grewal, has brought attention to the role of blockchain transparency in aiding law enforcement to trace stolen funds and respond to the growing instance of a street-level crime.

Digital crimes have taken a sharp turn recently, with criminals now targeting mobile devices instead of cash or cards. In a detailed report, the Coinbase CLO shared how criminals are stealing unlocked phones to gain quick access to victims' financial apps.

These apps include banking, payment services, and crypto-wallets, which they can easily drain within minutes. Paul Grewal noted that these crimes are no longer rare or futuristic; they are already happening in cities across the world.

However, crypto leaves a visible record, unlike cash, which disappears without a trace. Every transaction is recorded publicly on the blockchain, enabling Coinbase to trace stolen funds, report patterns, and help identify those responsible.

Paul Grewal also highlighted that Coinbase is not acting in isolation. Other major exchanges, such as Binance, are actively improving their systems to better combat crime. For instance, Binance has introduced stronger verification checks and is collaborating more closely with enforcement agencies.

These efforts demonstrate a growing awareness within the crypto space to fight crime proactively and protect users from theft and scams.

While Coinbase is focusing on tracing and investigations to assist the police, other exchanges are strengthening their security structures. Bybit recently partnered with Zodia Custody to provide a dedicated custody solution for its institutional clients, aiming to safeguard them from scams and provide optimal protection for their assets.

This new arrangement keeps funds separate from the main exchange but still available for trading, reducing internal risks and protecting investors from failures or misuse within the exchange.

Similarly, Binance has taken significant steps to enhance its security and compliance programs. The exchange has substantially boosted its "know-your-customer" (KYC) process and is cooperating more closely with law enforcement agencies worldwide.

These initiatives are part of a broader effort by the crypto industry to combat crime and maintain the trust of users and regulators.