Sat, July 27, 2024 at 02:03

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some concerning news regarding Russia's involvement in illegal cryptocurrency operations.

  • According to a study from TRM Labs, Russia's participation in these activities grew significantly in 2023.

  • 
• Annie

  • Oh, really?

  • That's quite alarming.😧 Can you tell me more about how significant their involvement is?

  
• 

  Kang-hoon

  • Certainly.

  • Almost 70% of all cryptocurrency earnings from ransomware in 2023 came from groups that spoke Russian.

  • This makes them major players in the global hacking sector.

• Annie

  • Wow, that's a huge percentage.😮 Which groups are we talking about here?

  
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• 

  Kang-hoon

  • The study highlights two major ransomware operators: ALPHV/BlackCat and Lockbit.

  • Together, they profited over $320 million.

  • Lockbit, which has been sanctioned, has targeted major entities like Boeing and the Royal Mail in the UK.

• Annie

  • That's shocking.😲 What about BlackCat/ALPHV?

  • Who did they target?

  
• 

  Kang-hoon

  • BlackCat/ALPHV targeted MGM Resorts and the Fortune 500 dental and medical supply wholesaler Henry Schein.

  • These attacks not only show the sophistication of these groups but also the significant financial losses incurred by the victims.

• Annie

  • It's scary how advanced these groups have become.😟 What role does Garantex play in all of this?

  
• 

  Kang-hoon

  • Garantex, a Russian exchange, handled more than 80% of all crypto transactions that were subject to sanctions.

  • This Moscow-based trading company has become a significant global hub for sanctioned crypto volumes.

• Annie

  • That's a lot of control for one exchange.😕 Does this mean the current regulatory processes are failing?

  
• 

  Kang-hoon

  • Indeed, it does.

  • The fact that Garantex continues to operate despite penalties highlights the challenges law enforcement faces in halting illegal crypto activities.

  • More monitoring and regulation are necessary.

• Annie

  • So, people are using cryptocurrencies to evade sanctions related to Russia's conflict with Ukraine?

  
• 

  Kang-hoon

  • Yes, that's correct.

  • The TRM Labs research indicates that many are turning to cryptocurrencies to evade sanctions.

  • US officials have banned Bitcoin and Ether addresses associated with these evasion tactics multiple times.

• Annie

  • It's amazing how quickly criminals adapt to new technologies.😕 What does this mean for global cybersecurity?

  
• 

  Kang-hoon

  • The rampant use of crypto for illegal means underscores the need for a global initiative to combat and oversee dirty cryptocurrency activities effectively.

  • The analysis also notes that North Korea remains a significant player in cryptocurrency crime.

• Annie

  • North Korea too?

  • This is getting worse.😟 How much did they steal in 2023?

  
• 

  Kang-hoon

  • North Korean hackers stole $1 billion in Bitcoin in 2023, proving their global cybersecurity threat.

  • 

  • This highlights the urgent need for international cooperation in tackling these issues.

• Annie

  • This news is quite unsettling.😔 Do you think this will have a negative impact on the market?

  
• 

  Kang-hoon

  • Yes, Annie.

  • This is definitely bad news.

  • The increasing sophistication and reach of these hacking groups, combined with the regulatory challenges, could lead to heightened market volatility and undermine trust in cryptocurrency systems.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.