Editing Bitcoin Proves Double-edged Sword For Criminals

US authorities have said they were able to access the 'private key' to the hackers' bitcoin account of ransomware hackers Darkside<br>  <br>Regulators have repeatedly criticised the growth of cryptocurrencies such as bitcoin because of their popularity with criminals but the technology's transparent transactions can also work against law breakers.<br> <br>The lesson is one that has been learnt by cybercriminal hackers Darkside the hard way after the organisation extracted a $4.4 million ransom from oil company Colonial Pipeline in bitcoin.<br> <br>Following the ransomware extortion, which forced the shutdown of a major fuel network in the eastern United States last month, the US Justice Department said it has clawed back $2.3 million of the funds by tracing financial transactions.<br> <br>"Following the money remains one of the most basic, yet powerful, tools we have," US Deputy Attorney General Lisa Monaco said on Monday.<br> <br>The financial forensics to track crypto transactions are more complex on the decentralised and anonymous networks.<br> <br>For a traditional bank payment,  dark web [https://mydarkmarket.com darknet market] list police can turn to the bank that sent or received the money but for bitcoin, the registry that records these transactions -- the blockchain -- does not ask users to reveal their identity.<br> <br>But the blockchain is also public and available to everyone to download and piece together who might own the anonymous addresses where the bitcoin arrives.<br> <br>While some users keep their bitcoin safe in an offline wallet, for example on a USB stick or hard drive, Darkside's bitcoins were always linked to an online account.<br> <br>Without specifying how they came by it -- whether by hacking or through an informant -- US authorities have said they were able to access the "private key" to the hackers' online account.<br> <br>In 2019, analysis of the blockchain enabled British and  [https://mydarkmarket.com dark web market list] American authorities to dismantle a child pornography ring and arrest more than 300 people in 38 countries.<br> <br>The complex tracking of transactions has become an industry in its own right.<br><br>Firms specialising in blockchain analysis have developed, such as Chainalysis in the United States and Elliptic in Britain.<br> <br>- Russian Hydra -<br> <br>According to a Chainalysis report released in February, cryptocurrency transactions for illegal purposes reached $10 billion in 2020, one percent of total cryptocurrency activity for the year.<br><br>In 2019 criminal activity using the online currencies reached a record $21.4 billion.<br> <br>The total cost of ransomware payments alone made in cryptocurrencies soared to nearly $350 million in 2020.<br> <br>"Cryptocurrency remains appealing for criminals, primarily due to its pseudonymous nature and the ease with which it allows users to instantly send funds anywhere in the world, " Chainalysis said.<br>          The US Justice Department said it has clawed back $2.3 million of the funds Darkside received from Colonial Pipelines by tracing financial transactions<br>  <br>Elliptic analysts believe they have identified the bitcoin wallet that received the ransom payment from Colonial Pipeline to Darkside, and found that at least one other payment of $4.4 million.<br> <br>More importantly, analysis of the transactions can identify the bitcoin sales platforms that received the wallet's ill-gotten funds.<br> <br>"This information will provide law enforcement with critical leads to identify the perpetrators of these attacks," Elliptic researcher Tom Robinson wrote.<br> <br>[https://mydarkmarket.com darknet market] regulators have put pressure on cryptocurrency exchange platforms.<br><br>Many, such as Coinbase,  [https://mydarkmarket.com darknet market] now require users to disclose their identity before making transactions. But other platforms are not following the same rules.<br> <br>Both Elliptic and Chainalysis point to the growing role of Hydra, a sales site for Russian-speaking customers, which is accessible via the [https://mydarkmarket.com darknet markets onion], a version of the web not listed on search engines and where users can remain anonymous.<br> <br>"Hydra offers cash-out services alongside narcotics, hacking tools and fake IDs," Robinson explained.<br> <br>Using sites like Hydra in conjunction with cryptocurrencies, Darkside's hackers have reportedly already resold some of the ransomed bitcoins.<br> <br>As the price of bitcoin has soared in recent months regulators are adapting their strategies.<br> <br>The Bank of England said on Monday that payments in stablecoins, fixed-price cryptocurrencies, should be regulated to the same standards as bank payments.<br>