Perfil: Bitcoin Proves Double-edged Sword For Criminals

<div class="artSplitter mol-img-group"> <div> <div class="image-wrap"> </div> <noscript> <img src="" width="450"> </noscript> </div> <p class="imageCaption">US authorities have said they were able to access the 'private key' to the hackers' bitcoin account of ransomware hackers Darkside</p> </div> <p>Regulators have repeatedly criticised the growth of cryptocurrencies such as bitcoin because of their popularity with criminals but the technology's transparent transactions can also work against law breakers.</p> <p>The lesson is one that has been learnt by cybercriminal hackers Darkside the hard way after the organisation extracted a $4.4 million ransom from oil company Colonial Pipeline in bitcoin.</p> <p>Following the ransomware extortion, which forced the shutdown of a major fuel network in the eastern United States last month, the US Justice Department said it has clawed back $2.3 million of the funds by tracing financial transactions.</p> <p>"Following the money remains one of the most basic, yet powerful, tools we have," US Deputy Attorney General Lisa Monaco said on Monday.</p> <p>The financial forensics to track crypto transactions are more complex on the decentralised and anonymous networks.</p> <p>For a traditional bank payment, police can turn to the bank that sent or received the money but for bitcoin, the registry that records these transactions -- the blockchain -- does not ask users to reveal their identity.</p> <p>But the blockchain is also public and available to everyone to download and piece together who might own the anonymous addresses where the bitcoin arrives.</p> <p>While some users keep their bitcoin safe in an offline wallet, for example on a USB stick or hard drive, Darkside's bitcoins were always linked to an online account.</p> <p>Without specifying how they came by it -- whether by hacking or through an informant -- US authorities have said they were able to access the "private key" to the hackers' online account.</p> <p>In 2019, analysis of the blockchain enabled British and American authorities to dismantle a child pornography ring and arrest more than 300 people in 38 countries.</p> <p>The complex tracking of transactions has become an industry in its own right.<p> </p><p> </p>
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Firms specialising in blockchain analysis have developed, such as Chainalysis in the United States and Elliptic in Britain.</p> <p>- Russian Hydra -</p> <p>According to a Chainalysis report released in February, cryptocurrency transactions for illegal purposes reached $10 billion in 2020, one percent of total cryptocurrency activity for <a href="https://hydraclubbioknikokex7njhwuahc2l67lfiz7z36md2jvopda7hidra-onion.com" rel="dofollow">hydraclubbioknikokex7njhwuahc2l67lfiz7z36md2jvopda7nchid.onion</a> the year.<p> </p><p> </p>
In 2019 criminal activity using the <a href="https://www.fool.com/search/solr.aspx?q=online%20currencies" rel="dofollow">online currencies</a> reached a record $21.4 billion.</p> <p>The total cost of ransomware payments alone made in cryptocurrencies soared to nearly $350 million in 2020.</p> <p>"Cryptocurrency remains appealing for criminals, primarily due to its pseudonymous nature and the ease with which it allows users to instantly send funds anywhere in the world, " Chainalysis said.</p> <div class="artSplitter mol-img-group"> <div> <div class="image-wrap"> </div> <noscript> <img src="" width="450"> </noscript> </div> <p class="imageCaption">The US Justice Department said it has clawed back $2.3 million of the funds Darkside received from Colonial Pipelines by tracing financial transactions</p> </div> <p>Elliptic analysts believe they have identified the bitcoin wallet that received the ransom payment from Colonial Pipeline to Darkside, and found that at least one other payment of $4.4 million.</p> <p>More importantly, analysis of the transactions can identify the bitcoin sales platforms that received the wallet's ill-gotten funds.</p> <p>"This information will provide law enforcement with critical leads to identify the perpetrators of these attacks," Elliptic researcher Tom Robinson wrote.</p> <p>Market regulators have put pressure on cryptocurrency exchange platforms.<p> </p><p> </p>
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Many, such as Coinbase, now require users to disclose their identity before making transactions. But other platforms are not following the same rules.</p> <p>Both Elliptic and Chainalysis point to the growing role of Hydra, a sales site for Russian-speaking customers, which is accessible via the darknet, a version of the web not listed on search engines and where users can remain anonymous.</p> <p>"Hydra offers cash-out services alongside narcotics, hacking tools and fake IDs," <a href="https://www.dailymail.co.uk/home/search.html?sel=site&searchPhrase=Robinson%20explained" rel="dofollow">Robinson explained</a>.</p> <p>Using sites like Hydra in conjunction with cryptocurrencies, Darkside's hackers have reportedly already resold some of the ransomed bitcoins.</p> <p>As the price of bitcoin has soared in recent months regulators are adapting their strategies.</p> <p>The Bank of England said on Monday that payments in stablecoins, fixed-price cryptocurrencies, should be regulated to the same standards as bank payments.</p></div><p> </p><p> </p>
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