According to new research from TRM Labs, Russia’s involvement in the illegal cryptocurrency business has increased significantly in 2023, reaching unprecedented levels of influence and profitability.
Russian hackers dominate cryptocurrency crime
TRM Labs research reveals a grim phenomenon: nearly 70% of cryptocurrency proceeds from ransomware can be traced back to Russian-speaking hacker groups, a proportion that highlights their prominent position in the cybercrime world.
The report further exposes Russia’s central role in global hacking activities, with these hacking entities having illegally stolen up to $500 million in cryptocurrency. Of particular concern are two ransomware operators, ALPHV/BlackCat and Lockbit, whose illegal gains exceeded $320 million.
Lockbit, an internationally sanctioned hacker group, has targeted several well-known companies including Boeing and the Royal Mail. BlackCat/ALPHV attacked MGM Resorts and Fortune 500 company Henry Schein, a giant in the dental and medical supply wholesale sector. These attacks not only show the wide reach and high skills of these hacker groups, but also reveal the huge financial losses suffered by the victims due to these attacks.
New research from TRM Labs reveals that Russia’s Garantex exchange plays a central role in sanctioned cryptocurrency trading. According to the research, one Russian exchange alone, Garantex, handles more than 80% of all sanctioned cryptocurrency transactions, highlighting its dominance in illegal trading.
Garantex, a Moscow-based trading company, has become a key hub for global bitcoin trading associated with approved entities. It is not only a trading venue with local legal authorization, but also a hub connecting illegal financial flows, allowing a large number of sanctioned cryptocurrency transactions to be carried out.
However, despite the fact that Garantex’s actions have attracted the attention of regulators and have been punished accordingly, it continues to operate. This fact exposes the shortcomings of the existing regulatory system and shows that law enforcement agencies face significant challenges in combating illegal cryptocurrency activities. Garantex’s continued operation not only poses a challenge to regulators, but also poses a threat to the security and integrity of the entire financial system.
Given Garantex's monopoly in regulated cryptocurrency trading, stricter monitoring and regulatory measures are clearly needed. Regulators must strengthen their scrutiny of such exchanges to ensure that their trading activities comply with laws and regulations and prevent illegal funds from flowing through cryptocurrency channels. Only in this way can the spread of illegal cryptocurrency transactions be effectively curbed and the stability and security of the global financial system be protected.
Cryptocurrency may become a new means of evading sanctions
As the conflict between Russia and Ukraine continues, more and more individuals and groups are looking to use cryptocurrencies to circumvent the resulting economic sanctions.
This trend reveals how criminals and hackers are quickly using emerging cryptocurrency technologies to bypass traditional financial regulations and sanctions to conduct illegal cross-border trade and fund transfers. At the same time, the anonymity and cross-border nature of cryptocurrency make it an ideal tool for criminal activities.
In response to this evasion, U.S. officials have identified and blocked multiple Bitcoin and Ethereum addresses associated with sanctions evasion tactics, TRM Labs’ research noted.
In addition, the widespread use of cryptocurrencies in illegal activities highlights the urgency of strengthening global supervision. Effective measures must be taken to combat and monitor these so-called "dirty" cryptocurrency activities to prevent the flow of illegal funds and potential criminal activities.
It is worth noting that although Russia has a place in cryptocurrency crime, analysts also point out that North Korea should not be ignored in this field. In 2023, North Korean hackers' attacks resulted in the theft of up to $1 billion worth of Bitcoin. This figure not only highlights North Korea's position in the global cybersecurity threat, but also emphasizes the need for the international community to strengthen cooperation and countermeasures in cryptocurrency regulation. #加密货币 #俄语黑客 #网络犯罪 #非法金融活动
Conclusion:
TRM Labs' report highlights the growing popularity of cryptocurrencies in illegal financial activities, especially the active role of Russian hackers and exchanges. This phenomenon poses new challenges to the global financial regulatory system, requiring regulators to strengthen cross-border cooperation and adopt innovative means to combat illegal transactions and sanctions evasion using cryptocurrencies.
In order to maintain the integrity and security of the financial system, it is necessary to strengthen the synchronous upgrading of regulatory policies and technologies on a global scale. This requires not only the coordination of laws and technologies, but also the joint efforts of the international community to build a safer and more transparent cryptocurrency trading environment. Through these measures, we can more effectively respond to the risks brought by cryptocurrencies, protect legitimate economic activities, and promote global financial stability.
