Report Attributes Large Share of Global Crypto Crime to Russia, Moscow City
The growing popularity of cryptocurrencies has placed Russia among the leaders in adoption. 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. Three Quarters of Ransomware Revenue Traceable to Russia, Researchers Say
Individuals and groups based in the Russian Federation, which is in the top 20 of the Global Crypto Adoption Index by Chainalysis, can be linked to some $400 million in crypto-denominated ransomware revenue in 2021, the blockchain analytics firm revealed this week. In a preview of its 2022 Crypto Crime Report, Chainalysis elaborated: 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.
Platforms operating mainly on the Russian crypto market launder the bulk of extorted funds, the U.S.-based company further alleges, citing web traffic data as well. An estimated 13% of the funds sent from ransomware addresses to the service providers went to users believed to be residing in Russia. These crypto laundering activities exceed those in other regions, the authors note.
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. Several of those are thought to have processed a substantial number 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 in September last year. The platform, which has offices in Moscow and St. Petersburg, is suspected of processing hundreds of millions of dollars in crypto transactions related to scams, ransomware attacks, darknet markets, and the infamous BTC-e exchange.
Chainalysis points out that during the three-year period examined in the study, these businesses have received nearly $700 million worth of cryptocurrency from illicit addresses. 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.
The report also indicates that scams and darknet markets account for the bulk of the illicit cryptocurrency transferred between 2019 and 2021 to companies based in Moscow City, at $313 million and $296 million, respectively. Ransomware comes in third place with $38 million.
The figures have been published after Russian law enforcement recently took action against cybercrime actors using cryptocurrency. In January, the Federal Security Service (FSB) busted the notorious Revil ransomware group on a U.S. request, arresting 14 of its members in an operation conducted with the Ministry of Internal Affairs.
A study conducted by another blockchain analytics firm, Elliptic, revealed last week that Russia has also blocked four major dark web sites with an estimated $263 million 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. Tags in this story Blockchain Analysis, Blockchain Forensics, Chainalysis, Crime, Crypto, crypto market, Cryptocurrencies, Cryptocurrency, Cybercrime, illicit funds, Money Laundering, Moscow City, ransomware, Regulation, Regulations, report, Russia, russian, study
Do you except Russia to crack down on cryptocurrency platforms facilitating cybercrime? Tell us in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Animoca Brands and Venture Accelerator Brinc Launch $30 Million Play-to-Earn Guild Fund NEWS | 11 hours ago Spanish Securities Regulator Warns of Impersonators Selling Bitcoin on Its Behalf NEWS | 20 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSEC Warns Against Interest-Bearing Crypto Accounts — Says They’re Riskier Than Bank Deposits Next articlePoint Network Launches Full Web3 Architecture Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItIndia Won"t Legalize or Ban Crypto at This Stage, Finance Minister Confirms
India"s finance minister has revealed the current status of crypto policy in India, including whether crypto will be legalized or banned in the country. The question surrounding the legitimacy of cryptocurrency was raised in parliament after the government announced that ... read more.Students Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says Binance Invests $200 Million Into the Business Magazine and Digital Publisher Forbes Fintech Specialists Predict Ethereum Price Hitting $6,500 This Year Before Rising to $26,338 by 2030 RBI: Cryptocurrency Is a Big Threat to Macroeconomic and Financial Stability in India