Trust-building measures in cryptocurrency through investigations and compliance systems, detailed in the second part of our Links NYC Recap
In the digital age, cybercrime continues to evolve at an alarming rate. One such form of digital extortion that has gained notoriety is ransomware.
Ransomware: A Modern Menace
Ransomware groups have demanded lump sums of up to $40 million dollars in Bitcoin to decrypt data, targeting organisations such as schools, hospitals, pipelines, municipalities, and even wine producers. The year 2020 was dubbed the "Year of Ransomware", and 2021 has already surpassed its figures, with ransomware attacks on the rise.
The Fall of Helix and the Rise of Regulation
The demise of Bitcoin mixer company Helix, founded by Larry Dean Harmon, marked a significant milestone in the fight against ransomware. Harmon was sentenced to 3 years in prison in 2021 for laundering over $300 million in Bitcoin related to darknet drug markets. Helix moved over 350,000 bitcoins (worth approximately $311 million at the time), making it a prime target for law enforcement. The private sector has also fought back against ransomware attacks by exploiting errors by operators to decrypt the files of dozens of victims.
Enhanced Cryptocurrency Investigations
Enriched Ethereum investigations have come to Reactor, with a collection of new tools to trace tokens transferred across blockchains. This development has enabled investigators to unravel complex peel chains with a single click, thanks to automated peel chain detection. Reactor has also played a crucial role in the downfall of Helix, as it was used to trace cryptocurrency transactions associated with cybercrime, including darknet market drug sales and scams.
The Battle Against Illicit Activities
Paxful, a peer-to-peer finance platform, has successfully curbed illicit use on their platform across categories, including scams and fraud shops. They have also leveraged their platform for deeper investigations into CSAM (Child Sexual Abuse Material).
Empowering the Community
In an effort to foster collaboration and information sharing, a community tab has been introduced on our website, currently in beta. This feature enables customers to easily share information and OSINT with each other, strengthening the collective fight against cybercrime.
Future Developments
Cross-chain graphing is coming soon to Reactor in Q1 of 2022, and our website's KYT product supports transaction monitoring for all crypto-assets and will soon support layer two transactions, starting with lightning networks this quarter. Behavioral alerts with highly customizable parameters have been introduced on our website's KYT product to make the job of compliance officers easier and more effective.
The Success of Ransomware: A Retrospective
Allan Liska, known as the "Ransomware Sommelier", attributes the success of early ransomware to the popularity of gift cards at Blockbuster and Starbucks. This highlights the importance of staying vigilant and adaptable in the face of evolving cyber threats.
The Closure of Ransomware Groups
REvil and Black Matter have announced their closure due to a combination of heightened political pressure, compromised Tor servers, and law enforcement activity. This is a positive sign that the collective efforts of law enforcement, the private sector, and the public are making a difference in the fight against ransomware.
As we continue to navigate the digital landscape, it is essential to stay informed, vigilant, and proactive in the face of cyber threats. By working together, we can create a safer and more secure digital world.
