Odaily News A new EU report points to Bitcoin’s Lightning Network and other Layer 2 solutions as “data obfuscation” technologies that could be “abused by criminals.” The first crypto report published by the EU’s Internal Security Innovation Hub points out that in addition to technologies such as Mimblewimble, zero-knowledge proofs, token mixers, and privacy coins such as Monero and Zcash, Layer 2 solutions such as the Lightning Network could also be abused by criminals. The report points out that the Lightning Network’s “two-party multi-signature payment channels do not broadcast all transactions to the blockchain, but only the opening and closing of channels,” adding that it and other Layer 2 solutions could pose “problems for law enforcement investigations.” The report emphasizes that their use of “zero-knowledge proofs and Layer 2 solutions” obfuscates some transaction data, which “significantly increases the complexity for law enforcement agencies to track the source of (illegal) cryptocurrencies.” (Decrypt)