Comrades In Crime: Russian-Speaking Hackers Bag 70% Of Crypto Proceeds

A study from TRM Labs says that Russia’s involvement in illegal crypto operations grew a lot in 2023. Almost 70% of all cryptocurrency earnings from ransomware came from groups of people who spoke Russian. This makes them big players in this field.

It is clear that Russia plays a significant part in the worldwide hacking sector, as these entities have stolen almost half a billion US dollars, the report disclosed.

The study puts in the spotlight ALPHV/BlackCat and Lockbit, two ransomware operators that profited over $320 million. Sanctioned hacker Lockbit has targeted Boeing and the Royal Mail in the UK.

The MGM Resorts and the Fortune 500 dental and medical supply wholesaler Henry Schein are targets for BlackCat/ALPHV. Not only do these assaults show how far-reaching and sophisticated these groups are, but they also show how much money these victims lost because of them.

Source: TRM Labs

The Role Of Garantex In The Illicit Operations

Russia is the focal point of the concentration of sanctioned crypto volumes, as highlighted in the TRM Labs research. Amazingly, just one Russian exchange, Garantex, handled more than 80% of all crypto transactions that were subject to sanctions.

Nowadays, most bitcoin transactions connected to approved entities go via this Moscow-based trading company, which has grown to be a significant global hub for these businesses.

There is a possibility that the existing regulatory processes are inadequate due to the fact that Garantex has a monopoly on sanctioned crypto volumes. The fact that it has continued to operate despite the penalties demonstrates the difficulties that law enforcement agencies have when attempting to bring illegal crypto activity to a halt. The concentration of sanctioned cryptocurrency transactions on a single exchange necessitates more monitoring and regulation.

Image: National Association of Manufacturers

Avoiding Sanctions And Regulating Crypto

An increasing number of people are turning to cryptocurrencies as a means of evading sanctions imposed as a result of Russia’s continuing conflict with Ukraine. US officials have banned Bitcoin and Ether addresses associated with these evasion tactics many times, according to the TRM Labs research.

The utilization of bitcoin or cryptocurrency in general for the purpose of eluding sanctions and perpetrating cross-border trade clearly shows how criminals and hackers quickly adapt to emerging new technologies.

The rampant use of crypto for illegal means underscores the importance of a worldwide initiative to effectively combat, if not oversee, dirty cryptocurrency activities.

The analysis acknowledges that North Korea is still a key player in cryptocurrency crime, despite concerns about Russia. North Korean hackers stole $1 billion in bitcoin in 2023, proving their global cybersecurity threat.

Featured image from Getty Images, chart from TradingView