Cybercrime

Ukraine’s Cyberpolice Force Starts Accepting Cryptocurrency Donations

03/03/2022 by Idelto Editor

Ukraine Cyberpolice Starts Accepting Cryptocurrency Donations

As Ukraine is increasingly relying on crypto donations, its Cyberpolice force has also decided to seek help from the crypto community in the country and abroad. The unit now takes various cryptocurrencies to support law enforcement agencies and acquire essential supplies.

Cyberpolice Ukraine’s Latest Government Body to Solicit Crypto Donations

The Cyberpolice department of the National Police of Ukraine has joined the government in Kyiv and Ukrainian NGOs trying to obtain funding through cryptocurrency amid Russian military invasion. The unit has recently posted an announcement on its website requesting “charitable assistance” in the form of digital coins.

The law enforcement agency has published several crypto addresses and is currently accepting donations in bitcoin (BTC), ether (ETH), tether (USDT), tron (TRX), polygon (MATIC), and BNB. It says it has launched the initiative in connection with the introduced martial law in Ukraine.

The collected coins will be used to support the National Police, the National Guard, the State Border Guard Service, and the State Emergency Service. The digital money will also go for the purchase of medicine, other essentials, and to provide medical care for victims of the hostilities with Russia.

“Also, people who want to support Ukraine in this difficult time can connect their mining equipment or part of it to these ethereum and bitcoin wallets,” the department adds in the notice.

The Cyberpolice force is Ukraine’s law enforcement body responsible for combating cybercrime. It has in the past carried out operations against illegal crypto activities but in 2018 it also called for the legalization of cryptocurrencies despite sharing some concerns about them.

Ukraine was in the process of regulating its crypto space when Russia launched its military offensive a week ago. In mid-February, Verkhovna Rada, the country’s legislature, adopted the law “On Virtual Assets” which was expected to enter into force after an update of the Ukrainian Tax Code.

Since the Russian assault, authorities in Kyiv have sought financial support through various channels. The government has been quite successful in its efforts to raise funds via crypto donations and has already received millions in bitcoin, ether, and other currencies like polkadot and dogecoin. Volunteer groups have been funded by cryptocurrency donors as well.

The global crypto community has supported humanitarian efforts in Ukraine. The world’s largest crypto exchange, Binance, pledged $10 million to help the Ukrainian people and currently facilitates assistance from third parties through a crowdfunding initiative.

You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.

Do you expect more government institutions in Ukraine to seek cryptocurrency donations? Tell us in the comments section below.

US Sanctions Russian Crypto Broker Suex for Laundering Millions in Illicit Funds

22/09/2021 by Idelto Editor

US Sanctions Russian Crypto Broker Suex for Laundering Millions of Illicit Funds

The U.S. Treasury Department has blacklisted Suex, a cryptocurrency broker based in Russia, for its money laundering activities. The platform 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.

OFAC Adds Russian Crypto OTC Exchange Suex to Blacklist

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has added Suex to the Specially Designated Nationals and Blocked Persons (SDN) List. The move, announced Tuesday, effectively prohibits U.S. citizens from engaging with the platform. OFAC also published a list of cryptocurrency addresses linked to Suex.

The company behind the crypto broker, Suex OTC s.r.o., is an entity registered in the Czech Republic. However, it operates mainly from branches in the Russian Federation, including its offices in the capital Moscow and the country’s second-largest city, Saint Petersburg. It’s believed that Suex maintains presence elsewhere in Russia, the surrounding region, and possibly the Middle East as well.

According to a report by blockchain forensics firm Chainalysis, which supported the U.S. government-led investigation, Suex (“Successful Exchange”) offers users conversion of their cryptocurrency into cash and other assets at its physical locations. It’s these services that have attracted ransomware actors, scammers, and darknet market operators that have allegedly sent over $160 million in bitcoin (BTC) to the over-the counter (OTC) crypto broker.

Since launching in early 2018, Suex has received a total of more than $481 million in BTC alone, according to exchange rates at the time of transfer, and it also accepts ether (ETH) and tether (USDT) among other coins. Of that amount, almost $13 million came from ransomware operators such as Ryuk, Conti, and Maze. Over $24 million was sent by crypto scams including the Finiko Ponzi scheme, more than $20 million originated from darknet markets like the Russian Hydra Market, and another $20 million came from mixers, Chainalysis detailed.

The OTC broker also got more than $82 million from “high-risk” digital asset trading platforms. According to the investigation, Suex received over $50 million worth of cryptocurrency from addresses associated with the now defunct BTC-e. Although the exchange was shut down four years ago for facilitating large-scale money laundering on behalf of cybercriminals, the funds were sent to the crypto broker after that, likely by former administrators, associates, or users.

One of the alleged operators of BTC-e, Russian IT specialist Alexander Vinnik who was arrested in Greece in the summer of 2017, was sentenced by a French court last December to five years in prison for money laundering. Another Russian national, Dmitry Vasiliev, who managed BTC-e’s successor platform, Wex, was recently arrested in Poland. Earlier this week someone moved over $30 million worth of ether from a Wex wallet.

What are your thoughts on the blacklisting of Russian crypto OTC broker Suex? Tell us in the comments section below.

Korean Banks Elevate Cybersecurity to Deal With Crypto-Related Risks

07/07/2021 by Idelto Editor

South Korean banks are taking steps to bring cybersecurity to a new level as they try to keep up with fintechs and address new threats arising from their interaction with the crypto space. A number of institutions are adopting unprecedented measures including the integration of blockchain technologies, Korean media reported.

South Korean Banks Boost Cybersecurity to Facilitate Digitalization

Faced with challenges stemming from the digitalization of the financial sector, commercial banks in South Korea are stepping up their efforts to improve security in the cyberspace. According to a report by the Korea Herald, the move is a bid to better compete with Korean fintech companies which have been developing rapidly. The new requirement for lenders and crypto exchanges to work together on the issuance of real-name accounts for traders is another motive.

Woori Bank is one of the institutions that have been taking extraordinary measures. On Monday, Woori announced the adoption of SOAR (security orchestration, automation and response), an advanced set of technologies enabling automatic collection and filing of security data. The lender said the integration would allow it to upgrade its cybersecurity platform and move beyond its previous monitoring-focused approach.

KB Kookmin Bank, another leading banking group in South Korea, has been working on its own automatic cybersecurity system which is based on artificial intelligence. The project is part of its 551.9 billion won ($488.5 million) investment in IT services in 2021. The lender also uses technology from the Korean startup Everspin designed to prevent phishing and fraud attempts through fake apps imitating its mobile services.

Two other banks, Shinhan and Hana, have opted to implement blockchain technologies which they hope will provide protection against hacking and reduce security gaps. Shinhan Bank has launched three blockchain-related services, including an identity verification service for its mobile app, Sol. And Hana Bank has adopted blockchain technology in its Hana 1Q app which helps customers manage their highway toll payments.

Regulators Reject Banks’ Requests to Be Relieved of Responsibility for Crypto Crime

Continuous efforts to upgrade cybersecurity in the banking sector have led to a 35.9% annual drop in cyberattacks to 6.2 million cases as of the end of 2020, Korea’s Financial Security Institute revealed last month. The Korea Herald quotes industry observers saying that banks and other businesses now need to constantly update their cybersecurity platforms in light of the new requirement for domestic crypto exchanges to partner with banks on the introduction of real-name accounts for their users.

Banking institutions have been reluctant to engage with the Korean coin trading platforms fearing exposure to money laundering, hacking, fraud and other risks related to cryptocurrencies. A report in June suggested that Korean banks have asked regulators to be relieved of liability for this kind of offense committed through digital asset exchanges they have to screen.

However, according to sources from the country’s banking sector quoted by Arirang, financial authorities have rejected the banks’ requests to exempt themselves from blame for such issues. Speaking with reporters recently, the Chairman of Korea’s Financial Services Commission (FSC) Eun Sung-soo emphasized that lenders hold the primary responsibility in case money laundering occurs on a crypto trading platform they are working with.

South Korean exchanges have increased in number to around 200. The rejection may lead to many closures as most of these platforms have so far failed to secure a partnership deal with a local bank. It has been reported that only four major Korean platforms — Upbit, Bithumb, Coinone, and Korbit — are currently working with commercial banks to implement the real-name account system. The provisions of the revised Special Funds Act, which introduced the requirement, will be enforced in September.

Do you think Korean banks will eventually agree to provide services to more cryptocurrency exchanges? Share your thoughts on the subject in the comments section below.

A Look at ‘Individual X’ and the Seized Stash of Silk Road Bitcoins Worth $1 Billion

09/11/2020 by Idelto Editor

On November 3, 2020, the cryptocurrency community noticed that one of the largest addresses holding 69,369 bitcoins from the Silk Road were transferred. Following the onchain movement, the U.S. government revealed it had seized the coins from a person they dubbed “Individual X.” The following is an in-depth look at what we know about the Silk Road bitcoin address that was seized by U.S. law enforcement.

This week on election day in the U.S., American law enforcement officials seized 69,369 bitcoins worth over $1 billion today. The bitcoin address is a well known address and news.Bitcoin.com reported on the address on September 11, 2020. The reason why our newsdesk looked into the address is because hackers have been trying to sell an alleged encrypted wallet dat file during the last two years.

The bitcoin address called “1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx” or “1HQ3” for short, stemmed from the Silk Road according to blockchain analysis. According to onchain data, 1HQ3 got 69,471 BTC sent to the address on April 9, 2013. The funds came from the Silk Road (SR) marketplace and many of the funds stemmed from the SR bitcoin address “1BBq.”

Individual X managed to hack nearly $1 billion from the old Silk Road Bitcoin accounts.

Then the govt found Individual X and took the Bitcoin back, the DOJ announced today.

Who is Individual X? pic.twitter.com/N0Rra8EqOR

— Nathaniel Popper (@nathanielpopper) November 5, 2020

Between April 2013 and up until the day the address was seized, only one large transfer was sent. 101 BTC (over $1.5M) was sent to the now-defunct Btc-e exchange and after that, the wallet only contained 69,369 BTC.

Reports show that federal law enforcement seized the funds on November 3 and are seeking forfeiture with the courts. They describe obtaining the BTC from a “hacker” and prosecutors call the person “Individual X.” The person the government calls Individual X is still a mystery to this day and people are uncertain about this person’s true identity.

However, the court filing explains that the Internal Revenue Service (IRS) was involved with the procedure. Law enforcement officials also hired third party blockchain analysis investigators to analyze bitcoin transactions executed by Silk Road.

“From this review, they observed 54 transactions that were sent from bitcoin addresses controlled by Silk Road, two bitcoin addresses totaling 70,411.46 BTC (valued at approximately $354,000 at the time of transfer),” the court filing details.

“According to an investigation conducted by the Criminal Investigation Division of the Internal Revenue Service and the U.S. Attorney’s Office for the Northern District of California, Individual X was the individual who moved the cryptocurrency from Silk Road,” the attorney for United States David L. Anderson wrote.

Anderson further added:

On November 3, 2020, Individual X signed a Consent and Agreement to Forfeiture with the U.S. Attorney’s Office, Northern District of California. In that agreement, Individual X, consented to the forfeiture of the Defendant Property to the United States government. On November 3, 2020, the United States took custody of the Defendant Property from 1HQ3.

The filing also notes that after the 101 BTC was sent to BTC-e in 2015, two years later the alleged Russian operator, Alexander Vinnik, was indicted for running an unlicensed money transmitting business and for money laundering.

I was just thinking 🤔 $975million in bitcoin that was unauthorized and illegally hacked and stolen by “individual x” who then signed an agreement of forfeiture to the @USAttorneys and turned those funds over to the @usgov ….
??? #stimuluspackage ??? @TFoegelle @AustinSchuck

— Rene’e & Shadow 🤘❤️✌️ (@shadownrenee) November 6, 2020

A number of bitcoiners assume this is how the prior owner of address 1HQ3 was caught, but there’s also the last two years of hackers attempting to crack the wallet. After the wallet saw the first transfer in 2013 with 69,471 BTC sent, a great number of cryptic messages have been sent to the address as well.

For instance, crypto advocates can leverage tools like note4ever.com, which encodes any message into a list of bitcoin addresses, so someone can broadcast it to an address of their preference. If someone was to inspect the transactions involved with address 1HQ3, then they would see a number of colorful messages.

Even after the federal agents seized the 69,369 bitcoin, messages with addresses like “1BitcoinForPresident42o7777DKkJij” and 1FreeRossF*ckCops77777777777W87XM can be seen on any blockchain explorer. A great number of messages were sent to 1HQ3 over the years and some people have definitely tried to communicate with the owner.

This leads to the massive amount of advertisements over the last two years that have claimed to sell an encrypted dat file belonging to the 1HQ3 bitcoin address. For example, Alon Gal, the Chief Technology Officer of cybercrime firm Hudson Rock tweeted about the address recently. Google also has approximately 16,700 links tethered to the address as well making it very popular.

Prior to the feds seizing the coins from the so-called Individual X, the wallet dat file was seen on marketplace websites like Satoshidisk.com, and All Private Keys. When news.Bitcoin.com reported on the attempted sales, one site was selling the file for 0.08929505 BTC or $1,050, which was the exchange rate at that time.

The 1HQ3 address may be a mystery today, but more clues are currently unraveling and may be published in the future. So far, this case has revealed where $1 billion worth of the old Silk Road bitcoins went, but 444,000 BTC is considered still missing from the marketplace’s coffers. Using today’s exchange rate, the missing 444k SR BTC is worth more than $6.8 billion today.

It will also be quite interesting to see whether or not the U.S. government decides to auction the 69k bitcoin stash, as they have done many times in the past.

What do you think about the bitcoin stash controlled by Individual X? Let us know what you think about this subject in the comments section below.

The post A Look at ‘Individual X’ and the Seized Stash of Silk Road Bitcoins Worth $1 Billion appeared first on Bitcoin News.

The $700 Million Wallet Crack: Bitcoin’s 7th Largest Address Is Under Constant Attack

11/09/2020 by Idelto Editor

During the last two years, hackers have been trying to crack the seventh-largest bitcoin wallet, an address that holds 69,370 BTC or $712 million using today’s exchange rate. According to the CTO of the cybercrime intelligence firm, Hudson Rock, the wallet is being publicized on hacking forums in order to crack the password.

Wallets with a massive amount of bitcoin (BTC) are listed on bitinfocharts.com in a list called the “Bitcoin Rich List.” During the last ten years, crypto proponents have scrutinized this list in order to figure out the owners or record significant transfers.

According to a report published by Vice, the seventh richest BTC address is a target for hackers, as an ostensible wallet.dat file has been passed around hacker forums for 12 to even 24 months. On Twitter, Alon Gal, the Chief Technology Officer of cybercrime firm Hudson Rock explained the situation.

“Get this,” Gal tweeted. “There is a bitcoin wallet with 69,000 bitcoins that is being passed around between hackers/crackers for the past [two] years for the purpose of cracking the password, no success so far. I have the wallet, Google hook me up with a quantum computer please,” the cybercrime intelligence expert added.

Following Gal’s tweet, he was inundated with a number of direct messages on Twitter asking about the wallet. Gal further wrote:

Unless there is a really good reason for me to give you the wallet, you’re not going to get it sorry 40+ [direct messages].

News.Bitcoin.com also discovered that the wallet.dat file has been selling on a number of websites like Bitcointalk.org. The 69,000 BTC wallet file has been seen on Satoshidisk.com, and All Private Keys as well. The website All Private Keys operates a market so individuals and groups can buy certain files in order to crack a number of public bitcoin addresses.

The file being sold on Satoshidisk.com is selling for 0.08929505 BTC or $1,050 using today’s exchange rate. On Friday, 321 people viewed the Satoshidisk.com listing that allegedly contains the wallet.dat file.

Despite the various attempts to crack the wallet with $712 million worth of BTC, no one has been able to crack it yet. Moreover, Gal explained on Twitter that there is possibly a scheme that allows someone to “forge a wallet,” which means the address might really be empty.

“Someone alerted me that there might be a method to forge wallets, although I don’t know if it is true or if it was applied to this specific wallet,” Gal tweeted. “There is a thriving market for selling uncracked wallets where I know some crackers had undeniable success,” the Hudson Rock CTO wrote.

Of course, many individuals were skeptical of any of the so-called wallet.dat file sales, and the website All Private Keys. Some people assume that all of the sites are basically selling phony keys and wallet.dat files to score BTC.

“How does one know [the marketplace All Private Keys] is not just a scam to get people to send them BTC and in return give them locked empty wallets?” one person asked in Gal’s Twitter thread.

News.Bitcoin.com does not recommend downloading or purchasing wallet.dat files or alleged private keys, as it is highly likely that most of these advertisements are scams. If it’s too good to be true, it probably is.

What do you think about hackers trying to crack this wallet with 690,000 BTC? Let us know what you think of this subject in the comments below.

The post The $700 Million Wallet Crack: Bitcoin’s 7th Largest Address Is Under Constant Attack appeared first on Bitcoin News.