1. BLOCKCHAIN + DRUG TRAFFICKING
ELISHA DESMANGLES, OLGA GRAVES, CHRISTIAN SPIVEY

2. AGENDA Problem Statement and Context Past Approaches
Solution Outcome and Process

3. PROBLEM SOLUTION AND CONTEXT
Although the spread of technology in the developing world has brought about numerous benefits, it has also resulted in negative effects--especially in the realm of cyber crime and drug trafficking.
The increasing use of technology in drug crime will likely result in detrimental effects for those living in the developing world–where criminal groups conducting illicit drug activities help to undermine development through corruption and destruction of socioeconomic opportunities.
Some of these barriers to development that drug trafficking can lead to include crime and violence, corruption of the public sector and social institutions, health problems, and the proliferation of money laundering and income inequality

4. PAST APPROACHES Targeting supply Difficulties Targeting Demand Drones
Infrared Sensors
Difficulties
Barriers to entry
Deferral to the United States
Targeting Demand
Shutting down Online Illicit Markets
Cryptocurrency
Two perspectives for targeting drug trafficking: supply and demand
Important to tackle both, but each requires different assets
Supply side tends to focus on distribution channels
Big channel off the coast of Guatemala and El Salvador carries cocaine from Colombia
Use drones such as the ScanEagle with fly at 16,000 feet and use sensitive infrared cameras to find small boats carrying illegal substances
240 tons of cocaine seized in a record high
The technology and infrastructure needed to facilitate these seizures is expensive, however
Poor and developing countries in Central and South America has deferred control of capture drug traffickers to the United States
This gives a lot of power over to the US which may not be in these country’s best interests
Targeting demand instead could help decrease market size and thus lower the incentive to supply
Have mostly been focusing on shutting down Online Illicity Markets such as Silk Road
When one is shut down, another comes to take its place
Instead should use blockchain and cryptocurrency to target the general purchase of drugs no matter which site

5. SOLUTION OUTCOME AND PROCESS
Koshy and McDaniel’s- An Analysis of Bitcoin using P2P Network Traffic
Methods such as these are used in the trainings
United Nations annual trainings with other orgs
Project Train The Trainers Course
Partners with FinTech and RegTech to combat financial crimes
Website to support these annual trainings
Creates a centralized database of information
Good source of information in between annual meetings
Koshy- Wife and Husband wrote an academic paper at Penn State university (2014) to collect data in the area. Then analyzed the data to come up with a set of solutions based on the traffic relay patterns. The most common of these being that when a series of new transactions was uploaded (1 transaction uploaded by every node on the network) the first computer to post the transaction is the IP address that conducted the transaction. Pair this with a public key and you can, with fairly significant strength, say that these are paired to the first IP address. Another type of transaction relay is a single transaction relay that wasn’t verified by the system. Then whichever computer attempted to post it was the IP address.
This can be negated if you are able to hide your IP address, but nonetheless provides an opportunity for law enforcement to connect bitcoin public keys to something more recognizable such as IP addresses which is a step forward for law enforcement.
United Nations Annual Trainings
Project Train the Trainers Course- This program is an essentials training on the fast rising rate of cryptocurrencies being used in illicit activities or Online Illicit Markets. (It’s a crash course). The environment is evolving so rapidly that countries are having a hard time fighting this crime. The time allotted allows the enforcement officials to understand the structures of bitcoin and find ways to cooperate, on the international stage, to apprehend criminals.
UNODC builds partnership with the actors from RegTech and FinTech sector, and collaborates with cryptocurrency industry leaders like Chainalysis Inc. to assist law enforcement officers and analysts to trace illegal financial flows.
Currently, about 22 participants were able to attend, but the website would be able to spread access to countries that may not have had participants attend as well as provide information in between the annual field trainings. As we know cryptocurrencies, and the acceptance of blockchain, is rapidly changing and a meeting once a year cannot prepare these countries well enough.

6. OUTCOMES Analysis and Literature Review
The effects of drug trafficking on developing countries
The use of technology by law enforcement to tackle drug trafficking
Methods for stopping drug traffickers through the use of blockchain technology
Assessment of the Current Solution Approaches
United Nations trainings on cryptocurrency for law enforcement officials
Development of a Prototype Website Solution
Block the Chain of Drugs

7. REFERENCES
Bohannon, J. (2016, March 9). Why criminals can't hide behind Bitcoin. Science. Retrieved from
Goldstein, J. (2013, October 2). Arrest in U.S. Shuts Down a Black Market for Narcotics. The New York Times. Retrieved from
International Narcotics Control Board (2002). Illicit drugs and economic development. In Report of the International Narcotics Control Board for Report no. E/INCB/2002/1. Retrieved from
Koshy, P., Koshy, D., and McDaniel, P. An Analysis of Anonymity in Bitcoin Using P2P Network Traffic. In: Christin N., Safavi-Naini R. (eds). Paper presented at International Conference on Financial Cryptography and Data Security. doi: / _30.
Lawson Stearns, B. & Dininio, P. (2013, April). The Development Response to Drug Trafficking in Africa: A Programming Guide. USAID. Retrieved from
Lopez, D. & Goodman, J. (2017, May 10). US Brings in More Technology to Fight Drug Smuggling at Sea. Associated Press. Retrieved from
Martin, J. (2013, October 7). Lost on the Silk Road: Online drug distribution and the ‘cryptomarket’. Criminology and Criminal Justice, 14(3), , doi: /
May, Channing. (2017, March). Drug Trafficking. In Transnational Crime and the Developing World. Retrieved from
Operation Onymous. Retrieved from
Rocha Garcia, R. (2003). Drug Trafficking and its Impact on Colombia: An Economic Overview. Canadian Journal of Latin American and Caribbean Studies, 28(55/56), , doi: /
Scan Eagle (2011, September 15). Retrieved December 12, 2017 from
Sharma, A. (2016, April 21). Bitcoin is India's currency of choice for drug trafficking, illegal arms and prostitution. Daily Mail. Retrieved from
Singer, M. (2008). Drugs and development: The global impact of drug use and trafficking on social and economic development. International Journal of Drug Policy, 19, , doi: /j.drugpo
Tor: Overview. Retrieved from
United Nations Office on Drugs and Crime. (2017, May 8). UNODC launches training to tackle cryptocurrency-enabled Organized Crime. Retrieved December 13, 2017, from
United Nations Office on Drugs and Crime. (2016 May). World Drug Report Retrieved from