Russia is now a leader in cryptocurrency adoption due to its growing popularity. But while it is yet to reach the top of the ranking, the country already has a “disproportionate share” of global activity related to some forms of crime involving cryptocurrency, according to a new study by Chainalysis.
Researchers Say Three-quarters of Ransomware Revenue is Traceable To Russia
The blockchain analytics company revealed that individuals and groups located in Russia Federation can link to approximately $400 million worth of crypto-denominated ransomware revenues in 2021. Chainalysis revealed the following details in a preview for its 2022 Crypto Crime Report:
Overall, roughly 74% of ransomware revenue in 2021 — over $400 million worth of cryptocurrency — went to strains we can say are highly likely to be affiliated with Russia in some way.
According to the U.S.-based firm, platforms operating on Russia’s crypto market aid in laundering the majority of the money. They also claim that they use web traffic data to prove their claims. A total of 13% were sent to ransomware addresses by the service providers to funds that went to Russian users. According to the authors, crypto laundering activity is higher than in other areas.
According to Chainalysis, dozens of cryptocurrency businesses facilitating the laundering of illicit funds are headquartered in, or operate out of, the Russian capital’s financial district, Moscow City. They are suspected to have executed a large number of transactions from addresses connected to criminal activity.
Suex was one of these brokers, and it was blacklisted last September by the Office of Foreign Assets Control of the U.S Treasury Department. This platform has Moscow and St. Petersburg offices and is believed to have processed hundreds of millions in crypto transactions related scams, ransomware, darknet market, and the notorious BTC-e trade.
Chainalysis reports that these companies have been able to receive nearly $700,000,000 worth of cryptocurrency through illicit addresses over the 3-year study period. That’s 13% of all crypto funds sent to these platforms, the total volume of which reached a high of almost $1.2 billion in Q2 of 2021.
According to the report, scams and darknet market accounts for most illicit cryptocurrency that was transferred from 2019 to 2021, between $313 million ($296 million) and companies located in Moscow City. Ransomware ranks third at $38 million.
These figures were published following Russian law enforcement’s recent action against cryptocurrency-using cybercrime actors. On a U.S. demand, in January the Federal Security Service, (FSB), busted Revil ransomware, and detained 14 of its members. The operation was conducted by the Ministry of Internal Affairs.
Elliptic conducted a study last week and found that Russia also blocks four important dark web websites, with an estimated $263M in crypto sales. The interior ministry has sought the arrest of six more hackers accused of “illegal circulation of means of payment” while authorities are working to regulate the expanding Russian crypto market.
Would you agree for Russia to clamp down on the use of cryptocurrency platforms in cybercrime financing? Let us know your thoughts in the comment section.
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