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Showing posts with label Crypto Crime. Show all posts
Threat Intelligence
Crypto Crime Crypto Funds Cyber Crime India ISKP Threat Intelligence

Terror Ourfits Are Using Crypto Funds For Donations in India: TRM Labs

 

Transaction Monitoring (TRM) Labs, a blockchain intelligence firm based in San Francisco and recognised by the World Economic Forum, recently published a report revealing the links between the Islamic State Khorasan Province (ISKP) and ISIS-affiliated fund-collecting networks in India. ISKP, an Afghan terrorist outfit, is reportedly using the cryptocurrency Monero (XMR) to gather funds.

Following the departure of US soldiers from Afghanistan, the ISKP terrorist group garnered significant attention. The "TRM Labs 2025 Crypto Crime Report," published on February 10th, focusses on unlawful cryptocurrency transactions in 2024. According to the reports, illicit transactions have fallen by 24% compared to 2023. 

The "TRM Labs 2025 Crypto Crime Report," published on February 10th, focusses on illicit cryptocurrency transactions in 2024. According to the reports, illicit transactions have fallen by 24% compared to 2023. However, it also emphasises the evolving techniques employed by terrorist organisations. 

TRM Labs' report uncovered on-chain ties between ISKP-affiliated addresses and covert fundraising campaigns in India. The on-chain link is a component of the Chainlink network that runs directly on a blockchain, featuring smart contracts that handle data requests and connect to off-chain oracles. The TRM report states that the ISKP has begun receiving donations in Monero (XMR). 

News reports state that Voice of Khorasan, a periodical created by ISKP's media branch, al-Azaim, announced the commencement of the organization's first donation drive in support of Monero. Since then, Monero's fundraising activities have consistently included requests for donations. 

According to the report, ISKP and other terrorist organisations are favouring Monero more and more because of its blockchain anonymity capabilities. Monero is now worth ₹19,017.77. This powerful privacy tool aids in transaction concealment. However, the report emphasises that terrorist groups will choose more stable cryptocurrencies over Monero money for the foreseeable future due to its volatility and possible crackdowns. 

Furthermore, reliance on cryptocurrency mixers and unidentified wallets has risen. The primary venues for exchanging guidance on best practices and locating providers with the highest security requirements are now online forums. Fake proofs are being used by people to get over Know Your Customer (KYC) rules enforced by exchanges, which makes it challenging for law enforcement to follow the illicit transactions. 

In contrast to Bitcoin and other well-known digital assets, Monero gained attention for its sophisticated privacy features that make transactions trickier to identify. Because of this, they are a tempting option for people who engage in illicit financial activity.
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North Korean Hackers
Coin Mixer Crypto Crime Cyber Crime cyber theft North Korean Hackers

North Korean Hacking Outfit Lazarus Siphons $1.2M of Bitcoin From Coin Mixer

 

Lazarus Group, a notorious hacker group from North Korea, reportedly moved almost $1.2 million worth of Bitcoin (BTC) from a coin mixer to a holding wallet. This move, which is the largest transaction they have made in the last month, has blockchain analysts and cybersecurity experts talking. 

Details of recent transactions

Two transactions totaling 27.371 BTC were made to the Lazarus Group's wallet, according to blockchain analysis firm Arkham. 3.34 BTC were subsequently moved to a separate wallet that the group had previously used. The identity of the coin mixer involved in these transactions remains unknown. Coin mixers are used to conceal the trail of cryptocurrency transactions, making it difficult to track down the ownership and flow of funds.

The Lazarus Group's latest effort adds to its long history of sophisticated cyber crimes, notably involving cryptocurrency. The US Treasury Department has linked them to a $600 million bitcoin theft from the Ronin bridge, which is linked to Axie Infinity, a famous online game. 

Growing cryptocurrency reservoir

According to Arkham, the Lazarus Group's combined wallet holdings are currently worth approximately $79 million. This includes around $73 million in Bitcoin and $3.4 million in Ether. This huge wealth accumulation through illicit techniques exemplifies the group's persistent and expanding cryptocurrency operations.

Furthermore, a recent TRM Labs study discovered that North Korean-affiliated hackers, notably the Lazarus Group, were responsible for one-third of all cryptocurrency attacks and thefts in 2023. These operations apparently earned them roughly $600 million. 

Cyber attack patterns  

Multiple cybersecurity firms have carried out investigations into the Lazarus Group's operational tactics. Taylor Monahan, a Metamask developer, stated that the latest Orbit assault, which resulted in a loss of $81 million, was similar to prior Lazarus Group operations. Such patterns provide significant insights into their strategies and can assist in the development of more effective defensive measures for future attacks.

Over the last three years, the cybersecurity firm Recorded Future has attributed more than $3 billion in cryptocurrency breaches and vulnerabilities to the Lazarus Group. Their consistent and effective execution of high-profile cyber thefts highlights the advanced nature of their skills, as well as the challenges encountered in combatting such attacks.
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Cyber Fraud
Chainlink Crypto Crime Crypto Fraud Crypto Hack Cyber Fraud

"Pink Drainer" Siphons $4.4 Million Chainlink Through Phishing

 

Pink Drainer, the infamous crypto-hacking outfit, has been accused in a highly sophisticated phishing scheme that resulted in the theft of $4.4 million in Chainlink (LINK) tokens. 

This recent cyber crime targeted a single victim who was duped into signing a transaction linked with the 'Increase Approval' feature. 

Pink Drainer exploits 'Increase Approval' function 

The 'Increase Approval' function is a regular method in the cryptocurrency world, allowing users to limit the number of tokens that can be transferred by another wallet. This activity facilitated the illegal transfer of 275,700 LINK tokens in two separate transactions without the victim's knowledge. 

According to Scam Sniffer, a crypto-security website, the tokens were drained in two separate transfers. Initially, 68,925 LINK tokens were routed to a wallet identified by Etherscan as "PinkDrainer: Wallet 2." The remaining 206,775 LINK were sent to a separate address that ended as "E70e." 

ZachXBT, a well-known crypto detective, also revealed that the stolen funds were soon transferred into Ethereum (ETH) and laundered through the eXch service, complicating asset tracking.

Scam Sniffer's investigation verifies the Pink Drainer group's involvement in this theft, although the specific technique employed to trick the victim into allowing the token transfer is unclear.

Scam Sniffer has also discovered at least ten additional scam sites linked to Pink Drainer in the previous 24 hours.

The Pink Drainer syndicate has been linked to incidents involving Evomos, Pika Protocol, and Orbiter Finance. It is also known for high-profile attacks on platforms such as Twitter and Discord. They were also accused earlier this year in a fraud posing as crypto journalists, which resulted in the theft of nearly $3 million from over 1,932 victims. 

According to Dune Analytics' most recent statistics, Pink Drainer's operations have intensified. As of December 19, the total losses suffered by the group amounted to $18.7 million, impacting 9,068 victims.
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Money Laundering
Canadian Intelligence Crypto Crime Cyber Security Financial crime report Money Laundering

Canadian Financial Intelligence Agency Predicts Crypto Crime to Surge Rapidly

 

As the use of cryptocurrency grows, more criminals are likely to start using it to raise, move, and conceal money outside of the established banking system, according to Canada's financial intelligence agency. 

In a report published on Monday, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) stated that ransomware attacks and the concealment and cleaning of fraudulent profits are the most frequent types of criminal activity involving cryptocurrencies. 

Fintrac expanded its strategic intelligence programme to increase its knowledge and comprehension of the risks and vulnerabilities related to virtual currencies by building on the funding it had received in the previous two years' budgets. 

“Fintrac continues to operate in a challenging environment with new and evolving technologies and financial products, rapidly shifting global financial systems and geopolitical events constantly shaping our work,” agency director Sarah Paquet stated in the report. 

Every year, the agency sifts through millions of pieces of data from insurance firms, banks, money services enterprises, securities dealers, real-estate brokers, casinos, and others to track down money linked to illegal activities. It then actively shares details on suspected cases with police and other law enforcement agencies. 

Businesses that exchange foreign currencies, transfer money, cash, or buy or sell money orders or traveler's cheques, or deal in virtual currency must first register with Fintrac before offering these services to the general public. 

According to the report, the continued use of unregistered money services businesses creates challenges for those attempting to discover money laundering and terrorist financing via traditional financial channels. 

“Suspicious transactions reported to Fintrac have highlighted the significant role of third-party intermediaries, such as professional money launderers and money mules, in facilitating underground banking and the laundering of criminal proceeds,” the report further reads. 

While the majority of illicit cryptocurrency transactions involve the laundering of criminal proceeds—a small proportion of total virtual transactions—Fintrac has observed that terrorist groups around the world are increasingly using virtual currencies to finance their operations. 

This trend is especially visible among those associated with ideologically driven violent extremism, who distrust regulated and centralised financial systems. There has also been an increase in loosely connected entities within expansive movements that transcend national boundaries in recent years, as well as the persistence of cross-border funding networks and online fundraising efforts. 

Additionally, the report discovered that there is a significant reliance on mixing services and high-risk exchanges for laundering cryptocurrency and converting ransoms back into cash.
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Two Factor Authentication
Blockchain Crypto Crypto Crime Crypto Theft Data Breach. Developers Two Factor Authentication

Over $30 Billion Stolen from Crypto Sector, Reveals SlowMist's

A recent report by cybersecurity firm SlowMist has uncovered a shocking revelation regarding the vulnerability of the crypto sector. According to the report, blockchain hacks have resulted in the theft of over $30 billion from the cryptocurrency industry since 2012. This alarming figure highlights the pressing need for enhanced security measures within the blockchain ecosystem.

The report from SlowMist, a renowned cybersecurity company specializing in blockchain technology, brings to light the magnitude of the problem facing the crypto sector. The findings emphasize the urgent requirement for robust security protocols to safeguard digital assets and protect investors.

The report reveals that hackers have been successful in exploiting vulnerabilities across various blockchain networks, resulting in significant financial losses. SlowMist's research indicates that these attacks have been carried out through a range of methods, including exchange hacks, smart contract vulnerabilities, and fraudulent schemes.

One of the primary areas of concern is the vulnerability of cryptocurrency exchanges. These platforms serve as a vital link between users and their digital assets, making them lucrative targets for hackers. SlowMist's report highlights the need for exchanges to prioritize security measures and implement robust systems to safeguard user funds.

The rise in smart contract-based attacks has also been a cause for concern. Smart contracts, which automate and facilitate transactions on blockchain platforms, have been exploited by hackers who identify vulnerabilities within the code. This highlights the need for thorough security audits and ongoing monitoring of smart contracts to prevent potential breaches.

Industry experts emphasize the significance of preemptive actions to thwart these threats in response to the report's conclusions. Renowned blockchain security expert Jack Smith emphasizes the value of ongoing surveillance and quick response mechanisms. According to him, "It is crucial for crypto companies to prioritize security and adopt a proactive approach to identify and mitigate vulnerabilities before hackers exploit them."

The report also highlights the demand for a greater user understanding of cryptocurrencies. If consumers don't employ prudence when transacting with and holding their digital assets, even the most comprehensive security measures won't be enough. By educating people about best practices, like as using hardware wallets and turning on two-factor authentication, the danger of being a victim of hacking efforts can be greatly decreased.

The cryptocurrency industry has grown rapidly in recent years, drawing both investors and bad actors looking to take advantage of its weaknesses. The SlowMist report is a wake-up call, highlighting the critical need for better security procedures to protect the billions of dollars invested in the sector.

The adoption of more robust security measures must continue to be a primary focus as the blockchain sector develops. The report's conclusions underscore that everyone is accountable for building a secure ecosystem that promotes trust and protects against possible dangers, including blockchain developers, cryptocurrency exchanges, and individual users.



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User Security
Crypto Crime Crypto Theft Cyber Crime Data Theft Illegal Activity User Security

Evaluation by Chainalysis Declare 2022 to be "The Year of Crypto Thefts"

 

A recent Chainalysis analysis stated that ransomware and fraud increased cryptocurrency theft last year. "The 2023 Crypto Crime Report" was published by Chainalysis. The paper also discussed the reasons why 2022 established records for cryptocurrency hacking and the effects of sanctions against Hydra, Tornado Cash, and other companies on cryptocurrency crime. In addition, case studies on the greatest hacks, darknet markets, and ransomware variants of the year were included in the paper. 

Rise in crypto crime

Chainalysis is a well-known blockchain data platform that serves more than 70 nations' worth of exchanges, financial institutions, insurance organisations, and cybersecurity firms with data, software, services, and research.

The 2022 instability on the cryptocurrency markets was addressed in the 2023 crypto crime report. The paper also highlighted the most recent methods used by fraudsters for laundering money using cryptocurrencies. 

For cryptocurrency criminals, 2017 was a good year. Over $3.8 billion, more than any other year, was stolen from various services and processes, with $775.7 million of that total occurring in just one month, according to Chainalysis. The research also claims that fraudsters' and ransomware hackers' overall revenue decreased.

As stated in the papers, DeFi methods accounted for 82.1% of the stolen money. "In particular, cross-chain bridges, which are protocols that let users exchange assets between two separate blockchains."

"Bridges are an enticing target for hackers as the smart contracts in effect become massive, centralised warehouses of monies backing the assets that have been crossed to the new chain – a more desirable honeypot could barely be imagined," the paper states. 

Oracle manipulation, according to Chainalysis, is a growing trend in DeFi hacks. This is when an attacker subverts the mechanisms used by a decentralised protocol to determine the price of traded assets and establishes favourable conditions for quick and extremely profitable trades.

DeFi protocols lost $386.2 million in 2022 as a result of 41 different oracle manipulation attacks. A case in point is the Mango Markets exploit, which led to the arrest of the suspected attacker, Avraham Eisenberg, who is now accused of manipulating commodities in a US court. 

The Lazarus squad of North Korean hackers surpassed their previous record in 2022, stealing $1.7 billion from numerous victims. The majority of that money was sent to decentralised exchanges and a number of mixers, including Tornado Cash, Blender(dot)io, and Sinbad after Blender was shut down. 

The Russian darknet marketplace Hydra, the exchange Garantex, the cryptocurrency mixers Blender(dot)io, and Tornado Cash were all sanctioned by the United States last year. However, not all of the money processed by these sanctioned services had criminal origins; according to the Chainalysis analysis, just 6.1% of the money Garantex received and 34% of the money received by Tornado Cash came from illegal sources. 

Sanctions, as stated by Chainalysis, significantly reduced the amount of money that could enter Tornado Cash, however, Garantex continued to operate as usual and reported an increase in receiving funds from recognised darknet and fraud sites.
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Technology
Crpto Crypto Crime Cryptocurrencies Government Regulations Technology

Britain Government With Robust Crypto Regulation

The department of Britain’s finance ministry came with robust regulations for crypto assets, following the collapse of the crypto exchange FTX last year in which millions of people lost billions of dollars. 
However, regulation of crypto-assets could create a one-sized approach that could hinder innovation.

The treasury department published a consultation document today, to bring cryptocurrency-related activities under the ambit of governing traditional financial services. 

The ministers said that the new regulations will "mitigate the most significant risks of crypto assets while harnessing their advantages". As per the data from ministers, up to 10% of UK adults now own some form of crypto. 

The government is planning to use existing rules and regulations for the industry, rather than creating a whole new regime. The Treasury Department reported regarding the regulations that it will allow crypto to benefit from the "confidence, credibility and regulatory clarity" of the existing system for financial services, as set out in the UK's Financial Services and Markets Act 2000 (FSMA). 

Economic Secretary Andrew Griffith reported that the government remained "steadfast in our commitment to grow the economy and enable technological change and innovation - and this includes crypto-asset technology. But we must also protect consumers who are embracing this new technology - ensuring robust, transparent, and fair standards". 

The Treasury Department proposed in its consultation document the following: 

1. It will make laws and regulations on crypto-asset promotions which will be fair, clear, and not misleading. 

2. It will also enhance data-reporting requirements, including with regulators. 

3. Furthermore, it will implement new laws to stop so-called pump and dump, or lie and sell high where an individual artificially inflates the value of a crypto asset before selling it. 

Conservative MP Harriett Baldwin, who chairs the Treasury Committee, said, "truly Wild West behavior, valuable technological innovation happening that could benefit the UK economy". We are paying close attention to these plans and to the regulators' plans because we would not want our constituents to think cryptocurrencies are any less risky if they are regulated".
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Technology
Blockchain Crypto Crime Crypto Currency Crypto Market Crypto Safety Technology

Is Bitcoin Actually Safe? Here’s All You Need to Know

 

Since its creation in 2009, Bitcoin, the first and best-known cryptocurrency in the world, has had many ups and downs. One bitcoin was essentially useless when it first started. 

In May 2010, Laszlo Hanyecz purchased two pizzas for around 10,000 bitcoins, marking the first bitcoin transaction for the purchase of tangible items (BTC). The cost of those pizzas would have been approximately $650 million USD at the highest recorded price of bitcoin, which was almost $65,000 USD per coin. 

However, this year Bitcoin witnessed a fall of roughly 60%. In the meanwhile, the absence of a regulatory framework led to an increase in crypto crimes. The Federal Trade Commission estimated that bitcoin fraud cost INR 27 billion in just the first three months of this year. 

Despite the cryptocurrency market's volatility, advocates of Bitcoin have consistently argued that it provides anonymity and security that traditional money cannot. That's not actually true, though. Contrary to popular belief, Bitcoin is not at all secure or private. Bitcoin privacy issues Bitcoin does include some privacy precautions that most fiat currencies do not, such as the ability to create addresses that are unrelated to a person's identity. But it's not at all private. Here are the primary three justifications. 

Transactions are openly disclosed 

The blockchain, a public ledger, contains a record of every Bitcoin transaction. This implies that every transaction is visible to everyone who has access to the blockchain and that anyone may see all the transactions connected to a specific Bitcoin address. A threat actor or law enforcement agency might track every transaction you ever made if they were able to connect your Bitcoin address to your identity. 

The Use of Third-Party Services Required 

Bitcoin is dependent on outside services. For instance, you must register with an exchange if you want to purchase Bitcoin. The vast majority of exchanges demand multiple forms of identity verification from users. Your name, email address, street address, and other details are all covered by this. Most will also require a photo of an ID issued by the government. 

Government surveillance 

Governments worldwide are warming up to the idea of regulating Bitcoin since it has long been favored by criminals of all sorts. However, surveillance also endangers privacy in addition to controlling it. Law enforcement organizations swiftly adjusted to this new reality and now employ blockchain analysis to identify Bitcoin users and track their transactions. Even if you don't mind a third-party service knowing your identity, consider what may happen if it experienced a data breach. 

How to Safeguard Your Bitcoin 

The safety of your Bitcoin largely depends on how you store it. Your choice of crypto wallet and the degree of encryption it employs are key factors in ensuring the security of your currencies. 

Ryan Burke, general manager at Invest at M1 asserts that convenience and security are not always mutually exclusive. 

Although less practical than hot wallets, he claims that offline "cold" wallets that are not connected to the internet are safe against attack. Cold wallets can also be stolen or destroyed. Burke warns that if you misplace your private key or lose a device or drive, you will have trouble. 

Because you can access your cryptocurrencies from everywhere there is an internet connection or phone service, hot wallets are more practical but also more prone to hacking. 

“A prudent strategy is to use a combination of hot and cold storage, with most assets being held in cold storage,” Burke added. 

Before registering for a wallet or service, experts advise reading the terms and conditions so that your bitcoin doesn't unintentionally become another victim of the crypto liquidity crisis. Investigate whether buying Bitcoin is a good fit for your financial portfolio, just like with any other investment. Be ready for highs and lows if you decide to purchase BTC as part of your investing plan.
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