Criminals Use Bitcoin Mixer to Launder More Than $300 Million
Key Takeaways
- CertiK discovered a significant change in 2023, with more than $300 million in funds stolen from major cryptocurrency breaches flowing into the Bitcoin network.
- Bitcoin mixers like Sinbad have emerged as a preferred choice for money laundering, especially after Tornado Cash was sanctioned.
- As cybercriminals adapt, dynamic countermeasures are urgently needed to effectively combat blockchain-based financial crime.
Blockchain security company CertiK figured it out In 2023, 50 major cryptocurrency breaches brought over $300 million in stolen funds into the Bitcoin network.This signals a change in tactics among cybercriminals.
Bitcoin’s decentralized nature, which allows users to transact without risk of censorship, provides a cloak of anonymity to malicious actors seeking to move illicitly acquired assets.
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Historically, Tornado Cash was the hackers’ choice It aims to obfuscate the source of profits obtained through illicit means. but, After being sanctioned Announced by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) in 2022 Tornado Cash has lost its appeal.
Instead, Bitcoin mixers have emerged as the preferred choice for money launderers in 2023. Such mixers, such as Sinbad, were widely used by the infamous hacker group Lazarus, for example.
Bitcoin Mixer’s strength lies in its unique approach to Bitcoin. Transaction anonymization. Unlike Tornado Cash, which simply breaks the link between sender and receiver, this mixer allows users to: Deposit Bitcoin and distribute it to multiple wallets in various amounts.
Joe Green, Head of Rapid Response at CertiK, said:
The Bitcoin ecosystem hosts a variety of privacy mixers that serve both privacy-conscious users and those with nefarious intentions.
Therefore, while Tornado Cash continues to be preferred small-scale cybercrime, CertiK noted a significant shift toward Bitcoin-based laundering solutions in cases involving more than $50 million. These trends may shape the future of cryptocurrency-related financial crime.
As cybercriminals’ tactics evolve, dynamic countermeasures are urgently needed to effectively combat blockchain-based financial crimes.
Joe Green suggests: Comprehensive tracking of illicit financial movementsCombination Sharing information with related parties such as exchangesThis is very important in solving this problem.
Green also emphasizes the importance of: Stakeholders within the cryptocurrency space remain alert and informed about criminal tactics.. This knowledge will be pivotal in the fight against financial crime in the cryptocurrency world.
Ain is a senior cryptocurrency researcher. Her vast experience with content related to cryptocurrency and blockchain technology allows her to identify key information that should be presented to learners and ensure the validity of the data collected.
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