Tag: chainalysis

Crypto Ransom Attack Payments Hit Record $1 Billion in 2023: Chainalysis

Payments from crypto-related ransom attacks nearly doubled to a record $1 billion (roughly Rs. 8,304 crore) in 2023, blockchain analytics firm Chainalysis said on Wednesday.

Scammers targeting institutions such as hospitals, schools and government offices for ransom pocketed $1.1 billion (roughly Rs. 9,133 crore) last year, compared with $567 million (roughly Rs. 4,708 crore) in 2022.

However, losses stemming from other crypto-related crimes such as scamming and hacking fell in 2023, Chainalysis said.

Bitcoin, the largest cryptocurrency, has jumped 60 percent since the end of September to $43,134 (roughly Rs. 35,81,500) on enthusiasm about a new US Bitcoin ETF and on signs central banks around the world will begin trimming interest rates.

“An increasing number of new players were attracted by the potential for high profits and lower barriers to entry,” Chainalysis said.

“Big game hunting” has become the dominant strategy over the last few years, with a dominant share of all ransom revenue volume made up of payments of $1 million (roughly Rs. 8.3 crore) or more, Chainalysis added.

A group of digital extortionists named “cl0p”, which subverted a file sharing software MOVEit, made nearly $100 million (roughly Rs. 830 crore) in ransom payments, the analytics company said.

Hundred of organizations, including government departments, UK’s telecom regulator and energy giant Shell, have reported cybersecurity breaches involving the MOVEit software tool, which is typically used to transfer large amounts of often sensitive data, including pension information and social security numbers.

A report in November showed that cybercrime group “Black Basta” had extorted at least $107 million in bitcoin, with much of the laundered ransom payments making their way to the sanctioned Russian cryptocurrency exchange Garantex.

Cryptocurrency theft via cyberheists and ransomware attacks is also a significant source of funding for North Korea, according to UN reports.

Chainalysis’ figures undervalue crypto’s role in all crime as it only tracks cryptocurrency sent to wallet addresses identified as illicit. It does not include payments for non-crypto-related crime such as crypto used in drug trafficking deals.

© Thomson Reuters 2024

Affiliate links may be automatically generated – see our ethics statement for details.

Check out our Latest News and Follow us at Facebook

Original Source

Analytics Firm Chainalysis Among FTX’s Long List of Creditors, Reveals Court Filing

Crypto analytics firm Chainalysis has disclosed that FTX owes it money in connection with the bankruptcy proceedings for the beleaguered cryptocurrency exchange. Chainalysis was listed as a creditor in filings submitted to the Delaware bankruptcy court on Wednesday, and it requested that any pertinent records be delivered to its attorneys. The partnership between the blockchain analysis company and FTX dates back at least to 2019 when they collaborated to update the exchange’s anti-money laundering (AML) and know-your-customer (KYC) procedures.

FTX founder Sam Bankman-Fried, who resigned as the company’s CEO when it filed for Chapter 11 bankruptcy last week, revealed a partnership with Chainalysis in September 2019. While it remains unclear how much Chainalysis is owed by FTX, a day before FTX declared bankruptcy, Chainalysis shared on-chain data in a series of tweets to make sense of the impact of FTX’s implosion.

“There’s no sugarcoating it: The potential collapse of an industry stalwart like FTX is bad for crypto, and the market reflects that,” the company said in a November 10 tweet. “But the industry has survived events like this before and emerged stronger. We know it will again.”

FTX has stated there may be more than a million persons having claims in the case but is expecting to release a list of its “Top 50” creditors by the end of this week.

A few companies have already disclosed their own involvement with FTX, whether it be in the form of loans, investments on one of its platforms, or holdings of the FTT token.

According to Binance CEO Changpeng Zhao, his company still possesses a substantial stock of FTT tokens. Similarly, BlockFi, a prominent cryptocurrency lender, said this week that it has “substantial exposure” to FTX and that it is considering filing for bankruptcy and making layoffs.

Meanwhile, in a statement submitted to the bankruptcy court in Delaware, new FTX CEO John J. Ray III disclosed that bankrupt firm Alameda Research owes a total of $4.1 billion (roughly Rs. 33,300 crore) from various parties.

Euclid Way, one of the companies under FTX’s bankruptcy filing, lent $2.3 billion (roughly Rs. 18,700 crore) to Paper Bird.

Additionally, Alameda Research lent $1 billion (roughly Rs. 8,118 crore) to FTX founder Sam Bankman-Fried, $543 million (roughly Rs. 4,408 crore) to FTX’s Director of Engineering Nishad Singh and $55 million (roughly Rs. 446 crore) to FTX co-CEO Ryan Salame.

Affiliate links may be automatically generated – see our ethics statement for details.



Check out our Latest News and Follow us at Facebook

Original Source

Chainalysis Launches Subsidiary to Assist US Government Agencies in Investigating Crypto Crimes

Chainalysis, a blockchain analytics firm, has launched its subsidiary dubbed Chainalysis Government Solutions, which aims to aid US government agencies in investigating crimes related to crypto. The firm has already dealt with US government agencies in the past on a number of separate probes and a new study by the research firm reveals that 75 percent of public sector agencies around the world are not prepared to deal with the crypto incidents, highlighting a dire need for relevant resources and technologies accessible to investigators.

As per a blog post published by Chainalysis, the new subsidiary will work with law enforcement and government agencies investigating cryptocurrencies, criminal operations, and recovery of funds for victims. The post said the subsidiary will employ around 90 experts in cryptocurrency investigations, analysis, cyber security, and data engineering.

The post also adds that the subsidiary will be led by Eric Scofield, previously the CEO of Abaxx, who has experience in partnering with the US government on data analytics and investigative services.

Having collaborated with the US government in deals worth tens of millions of dollars, Chainalysis has increased its effort toward aiding public agencies in investigations related to cryptocurrencies. The company has helped agencies through its advanced technology to track blockchain transactions and also provide them with data tools.

The company signed a $625,000 (roughly Rs. 4.95 crore) deal with the US Internal Revenue Service (IRS) in 2020 for building a tool that tracks privacy coins such as Monero and second-layer solutions like Lightning Network.

Four major solutions that the firm will provide to the US agencies were highlighted in the latest blog. Essentially the company aims to integrate the best software tools and data from the industry. In addition, it will also offer on-chain analysis to offer insight into the government institutions.

Michael Gronager, the CEO of Chainalysis, has pointed out that the significant rise in crimes related to crypto has expanded the reach of government investigations. It has gone far away from the use of Bitcoin in illegal markets. The institutions have started targeting nation-state hacking and areas of ransomware attacks.

Check out our Latest News and Follow us at Facebook

Original Source

Exit mobile version