Report Attributes Large Share of Global Crypto Crime to Russia, Moscow City

The increasing popularity of cryptocurrencies has placed Russia among the leaders successful adoption. But portion it is yet to scope the apical of the ranking, the state already has a “disproportionate share” of planetary enactment related to immoderate forms of transgression involving cryptocurrency, according to a caller survey by Chainalysis.

Three Quarters of Ransomware Revenue Traceable to Russia, Researchers Say

Individuals and groups based successful the Russian Federation, which is successful the apical 20 of the Global Crypto Adoption Index by Chainalysis, tin beryllium linked to immoderate $400 cardinal successful crypto-denominated ransomware gross successful 2021, the blockchain analytics steadfast revealed this week. In a preview of its 2022 Crypto Crime Report, Chainalysis elaborated:

Overall, astir 74% of ransomware gross successful 2021 — implicit $400 cardinal worthy of cryptocurrency — went to strains we tin accidental are highly apt to beryllium affiliated with Russia successful immoderate way.

Platforms operating chiefly connected the Russian crypto marketplace launder the bulk of extorted funds, the U.S.-based institution further alleges, citing web postulation information arsenic well. An estimated 13% of the funds sent from ransomware addresses to the work providers went to users believed to beryllium residing successful Russia. These crypto laundering activities transcend those successful different regions, the authors note.

According to Chainalysis, dozens of cryptocurrency businesses facilitating the laundering of illicit funds are headquartered in, oregon run retired of, the Russian capital’s fiscal district, Moscow City. Several of those are thought to person processed a important fig of transactions originating from addresses linked to crime.

Among them is Suex, a crypto broker which was blacklisted by the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department successful September past year. The platform, which has offices successful Moscow and St. Petersburg, is suspected of processing hundreds of millions of dollars successful crypto transactions related to scams, ransomware attacks, darknet markets, and the infamous BTC-e exchange.

Chainalysis points retired that during the three-year play examined successful the study, these businesses person received astir $700 cardinal worthy of cryptocurrency from illicit addresses. That’s 13% of each crypto funds sent to these platforms, the full measurement of which reached a precocious of astir $1.2 cardinal successful Q2 of 2021.

The study besides indicates that scams and darknet markets relationship for the bulk of the illicit cryptocurrency transferred betwixt 2019 and 2021 to companies based successful Moscow City, astatine $313 cardinal and $296 million, respectively. Ransomware comes successful 3rd spot with $38 million.

The figures person been published aft Russian instrumentality enforcement precocious took enactment against cybercrime actors utilizing cryptocurrency. In January, the Federal Security Service (FSB) busted the notorious Revil ransomware radical connected a U.S. request, arresting 14 of its members successful an cognition conducted with the Ministry of Internal Affairs.

A survey conducted by different blockchain analytics firm, Elliptic, revealed past week that Russia has besides blocked 4 large acheronian web sites with an estimated $263 cardinal successful crypto sales. The interior ministry has sought the apprehension of six much hackers accused of “illegal circulation of means of payment” portion authorities are moving to regulate the expanding Russian crypto market.

Do you but Russia to ace down connected cryptocurrency platforms facilitating cybercrime? Tell america successful the comments conception below.

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