Thursday, October 5, 2023

Ransomware Epidemic not Caused by Crypto


Cryptocurrency, according to Christian Devolu of Vice, has profoundly changed how cybercrime is carried out.

Hackers have previously utilized ransomware to extract money from well-known firms. He now claims that they are requesting cryptocurrency as payment. Crypto, he claims, is to blame for the ransomware outbreak.

Crypto Ransom Payments

The US Treasury Department, on the other hand, issued a series of reports last month. It covers a wide range of topics related to money laundering and terrorism financing. Money laundering and ransomware, two of the many threats linked with illegal financial transactions. Traditional networks and fiat, they say, are still more widespread in these places.

From 2014 to January of this year, Vice examined 40 ransom payments made via money transfers. Western Union and MoneyGram use to send the majority of the funds. The transactions were handled by lesser-known corporations like Ria and Wal-Mart.

Mexican criminal gangs, according to their estimations, have made roughly $800 million in the last decade through kidnapping migrants. Every transaction has also resulted in a cut for money-transfer businesses.

People often pay less to smuggle into the United States than they would to pay a ransom. These agreements help American businesses by allowing them to profit from the coyotes. Illegal border crossing can cost anywhere from $150 to $15,000. According to estimates from law enforcement agencies and think tanks, people pay roughly $2 billion each year to smugglers for their unlawful activities.

Companies are increasingly profiting from the illegal economy by turning a blind eye to smugglers and extortionists’ payments. They also pointed out that lawmakers frequently overlook the role that US corporations play in halting money flow.

Crypto as Tool for Money Laundering

Because of their increasing sophistication and opacity, the NMFS has highlighted virtual assets as an emerging concern to money launderers. It also cautioned against the use of DeFi and other technologies that enhance anonymity.

Virtual assets have linked to a number of cyber-attacks in addition to utilization in financial transactions. Fraudsters might utilize promises of money to deceive their victims into exposing their personal information, motivated by the unpredictable cryptocurrency market. After carrying out the attack, they demand payment in virtual assets.

The use of cryptocurrency as a money-laundering technique is on the rise, according to the analysis. It quoted a Chainalysis analysis that claimed that in 2021, more money transmitted to criminal locations via blockchain technology.

The US Treasury Department still considers fiat currency to be the primary form of money laundering, notwithstanding the advent of virtual currencies. They claim that the utilization of virtual assets is significantly less common than traditional approaches. According to Chainalysis, the share of unlawful money in the market has dropped to an all-time low of 0.15 percent.

Effectiveness against Crime

While cryptocurrencies enable users avoid financial constraints, they can also use by criminals, according to the paper. They can, on the other side, assist users in concealing their assets.

Most blockchains, including Bitcoin, however, employ clear public ledgers to aid law enforcement in locating offenders. Companies like Chainalysis can monitor the Bitcoin used by criminals after ransom payments have been made via blockchain. They can then assist law enforcement in reclaiming the monies.

In recent months, there have been concerns regarding the use of cryptocurrency in unlawful transactions. Officials are currently working on measures to prevent Russia from evading sanctions by exploiting digital currency. While people can use cryptocurrencies to evade sanctions, they aren’t a silver bullet, according to Tom Robinson, CEO of Elliptic.

Louis Honsa
Louis Honsa
Louis Honsa is an independent writer for Cryptoconstellation. He is a data analyst and trades NFT’s too. Louis enjoys cycling and working out in his free time.

More from Crypto News Constellation

[tds_leads input_placeholder="Email address" btn_horiz_align="content-horiz-center" pp_checkbox="yes" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" msg_composer="success" display="column" gap="10" input_padd="eyJhbGwiOiIxNXB4IDEwcHgiLCJsYW5kc2NhcGUiOiIxMnB4IDhweCIsInBvcnRyYWl0IjoiMTBweCA2cHgifQ==" input_border="1" btn_text="I want in" btn_tdicon="tdc-font-tdmp tdc-font-tdmp-arrow-right" btn_icon_size="eyJhbGwiOiIxOSIsImxhbmRzY2FwZSI6IjE3IiwicG9ydHJhaXQiOiIxNSJ9" btn_icon_space="eyJhbGwiOiI1IiwicG9ydHJhaXQiOiIzIn0=" btn_radius="0" input_radius="0" f_msg_font_family="521" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_msg_font_weight="400" f_msg_font_line_height="1.4" f_input_font_family="521" f_input_font_size="eyJhbGwiOiIxMyIsImxhbmRzY2FwZSI6IjEzIiwicG9ydHJhaXQiOiIxMiJ9" f_input_font_line_height="1.2" f_btn_font_family="521" f_input_font_weight="500" f_btn_font_size="eyJhbGwiOiIxMyIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMSJ9" f_btn_font_line_height="1.2" f_btn_font_weight="600" f_pp_font_family="521" f_pp_font_size="eyJhbGwiOiIxMiIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMSJ9" f_pp_font_line_height="1.2" pp_check_color="#000000" pp_check_color_a="#fdbf46" pp_check_color_a_h="#000000" f_btn_font_transform="uppercase" tdc_css="eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGUiOnsibWFyZ2luLWJvdHRvbSI6IjMwIiwiZGlzcGxheSI6IiJ9LCJsYW5kc2NhcGVfbWF4X3dpZHRoIjoxMTQwLCJsYW5kc2NhcGVfbWluX3dpZHRoIjoxMDE5LCJwb3J0cmFpdCI6eyJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3Njh9" msg_succ_radius="0" btn_bg="#fdbf46" btn_bg_h="#dd9933" title_space="eyJwb3J0cmFpdCI6IjEyIiwibGFuZHNjYXBlIjoiMTQiLCJhbGwiOiIwIn0=" msg_space="eyJsYW5kc2NhcGUiOiIwIDAgMTJweCJ9" btn_padd="eyJsYW5kc2NhcGUiOiIxMiIsInBvcnRyYWl0IjoiMTBweCJ9" msg_padd="eyJwb3J0cmFpdCI6IjZweCAxMHB4In0=" msg_err_radius="0" f_btn_font_spacing="1" title_text="Stay Up to Date"]


Related Crypto News

Celsius Gets Lawyer to Recoup $180M

Holders of accounts amount to 4% of the total funds held by the bankrupt crypto lender. Customers of the...

El Salvador’s Surprising Debt Buyback

On Tuesday, the president of El Salvador announced plans to extend a voluntary repurchase offer to bondholders whose...

Crypto Crisis Prompts Regulation

Bills and the human toll create a perfect storm. Cryptos thrived as old-system alternatives. The recent crypto crash has...

Chipotle Buys the Dip Game Mainstreams Crypto

Despite a drop in pricing this year, Bitcoin and other crypto assets continue to enter the mainstream. Some...