By Michael Scott
Chainalysis reveals that crypto criminals among North Korea-affiliated attackers target centralized exchanges, with UK illegal activity peaking at $5.1 billion.
Actors behind crypto heists show a preference for centralized exchanges, having drained over $1.5 billion from the platforms by mid-2024, per Chainalysis report. The report by the Blockchain analytics firm shows a significant shift in crypto criminals who, for four years, eyed the decentralized platforms.
The report links the change to the sophistication realized by attackers, who now deploy advanced social engineering tactics. Chainalysis’s mid-year report illustrates that some attackers and those affiliated with North Korea have sought IT jobs within the targeted entities.
The strategy allows crypto criminals to penetrate centralized exchanges. This occurs even when centralized trading platforms seem mature and deploy robust security measures. Their target is the awareness that they can earn crypto criminals larger potential payoffs.
The report notes that the value of stolen crypto rose 84% yearly to $1.58 billion. Nonetheless, the figures show a sudden turnaround from a 50% year-over-year decline realized by mid-2023. Such a change makes the present surge appear pronounced.
Ransomware Hit $459.8M
While the number of hacking incidents increased marginally by 2.76% year-on-year, the average value of the incident rose sharply by 79%. The Chainalysis report shows that the notable increment in stolen value underscores that criminals are pursuing higher-value targets.
Chainalysis Ransomware is a growing threat. Total payments hit $459.8 million by mid-2024, up from $449.1 million in June 2023.
The report attributes the surge in ransomware and stolen funds to organized criminal activity. Chainalysis connects the large heists to North Korean attackers.
The analytic firm indicates that criminal actor groups deploy sophisticated social engineering techniques. These techniques allow them to breach crypto entities and launder the proceeds before authorities intervene.
While the Chainalysis report highlights a sharp rise in organized crime, it reveals a positive trend within the crypto sector. The report illustrates that legitimate transactions executed on blockchains outpaced the rise of illicit activity.
Chainalysis demonstrates that aggregate transactions tumbled 19.6% to $16.7 billion from $20.9 billion. Such occurred as crypto utilization extended following mainstream adoption.
Cybercrime research head at Chainalysis, Eric Jardine, indicates that witnessing criminal activity’s shrinking share of the crypto ecosystem is highly encouraging. Legitimate activity outpaced illicit activity executed on-chain, which illustrates the continued transition of crypto to the mainstream space.
UK Linked with $5.1 Billion in Illicit Crypto Transactions
The scrutiny of illicit activity within the crypto ecosystem by the National Crime Agency (NCA) links the UK with $1.7B to $5.1B annually.
A recent disclosure by the UK’s NCA shows illicit crypto transactions hit $5.1 billion annually, and crime in the crypto and digital space is rising. The agency’s findings are featured in the National Strategic Assessment, which draws data from enforcement, private intelligence, and government.
The NCA report indicates that the growth of crypto popularity matches the frequency of crypto-based crime.
The NCA observed that the amount of money laundered within the UK rose in 2023, with criminals sustaining the illicit tempo throughout 2024. The report illustrates that crypto is a crucial facilitator of criminal transactions, funds laundering, dark web trade, and ransom settlement. The NCA observes that the legitimate utilization of crypto presents opportunities for fraud and theft.
According to NCA data, the rise in crypto-based money laundering is reportedly between $1.7B and $5.1B. A substantial portion of laundered money links to the corrupt elites orchestrated overseas.
The NCA established a special unit for crypto last year and exercised seizure powers. This coincided with a period when the UK profiled privacy coins, including Monero’s threat to public good.
A notable case where NCA played a key is facilitating the downing of lockBit, a cybercrime entity identified as Europol. The group is behind the proliferation of ransomware gangs.
The Justice Department links the syndicate as netting $120M from ransom payments executed by over 2,000 victims globally.
In February last year, the NCA played a critical role in dismantling LockBit in a coordinated effort involving the US and six other jurisdictions. Arrests occurred globally, and over 200 crypto accounts connected to LockBit were frozen.