Theft of cryptocurrencies, the new type of cybercrime and how it is being fought

ZachXBT is an independent researcher who last August warned that a group of scammers in France was stealing millions in cryptocurrencies. Unexpectedly, his warning paid off.

“Swindlers in Paris” was the title of his investigation.

And for once, the police heeded him and announced last week the arrest of five young cybercriminals.

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It is the first time that their investigations provoked a police intervention, ZachXBT assured in a message to AFP.

Tracing social networks and platforms dedicated to cryptocurrencies, ZachXBT (who does not reveal his identity in order to continue his work) has so far revealed fraud and hacks worth about 250 million dollars.

This “cyber detective” has 300,000 followers on Twitter, where he tells his investigations step by step.

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The main problem with such hacking is its relative insignificance, compared to big hits by state-backed or criminal groups.

Terrorist cyber-attacks and money laundering are the priority focus of US and European authorities.

The result is that only eight people were charged in the United States in the first half of the year for petty cryptocurrency-related scams, according to the US Department of Justice.

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TV star Kim Kardashian was recently fined $1.26 million for promoting a cryptocurrency on Instagram without disclosing that she had been paid to do so.

No official data

The cryptocurrency specialist firm Chainalysis assures that fraud and theft accounted for more than $3.5 billion between January and July.

The AFP asked departments and authorities in Europe and the United States for global figures on cyber crimes related to cryptocurrencies, without success.

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Chainalysis is specialized in tracking down this type of crime and selling its services to private institutions and public agencies, including the New York Police.

Former New York Police Chief Terry Monahan explained at a recent Chainalysis symposium that before he left his post last year, the average number of cryptocurrency-related complaints was three daily.

Since they lacked the means to investigate them, the cases were closed.

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“The victim had nowhere to turn” recognized this former police chief. US federal agencies were only interested in multi-million dollar cases.

Small investors end up requesting the help of “cyberhounds” like ZachXBT.

“I would say there is little police persecution in the crypto space” assures this expert.

China is particularly reluctant to their demands for collaboration.

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Little by little, the authorities, particularly in the United States, are realizing the level of scams.

Recently, the Celsius scandal broke, a cryptocurrency lender that went bankrupt, leaving a $4.7 billion hole.

Pensioners lost their savings, farmers lost their properties, small investors were totally ruined.

It’s not all bleak: companies like Chainalysis have technology that allows to recover part of the fundsMonahan says.

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“At least we managed to give them something back [a las víctimas]”Explain.

According to Professor Omid Malekan, a professor at Columbia University, there are increasingly sophisticated tools to unmask cybercriminals, despite the anonymity that prevails in the crypto universe.

“Once a participant is identified”explains this expert, “all your history on the blockchain (chain computing where every transaction is recorded) it becomes a valuable data source for tracking your entire network.”

Source: Elcomercio

James

I have worked as a journalist for over 10 years and have written for various news outlets. I currently work as an author at 24 News Recorder, mostly covering entertainment news. I have a keen interest in the industry and enjoy writing about the latest news and gossip. I am also a member of the National Association of Journalists.