WHAT IS CRYPTOCURRENCY CRIME?
Cryptocurrency and crime describe notable examples of cybercrime-related to the theft of cryptocurrencies and some of the methods or security vulnerabilities commonly exploited. Crypto-jacking is a form of cybercrime specific to cryptocurrencies that have been used on websites to hijack a victim’s resources and use them for hashing and mining cryptocurrencies. According to blockchain analysis company Chain analysis, illicit activities like cybercrime, money laundering, and terrorism financing made up only 0.15% of all crypto transactions conducted in 2021, representing a total of $14 billion. The top cryptocurrencies are Bitcoin, Ethereum, Cardano, and Dogecoin. The legal framework regarding cryptocurrencies is yet to be laid down. RBI has not given any license/authorization to any entity/company to deal with any virtual currency. In the absence of a legal framework, it is not advisable for citizens to deal with virtual currencies such as Bitcoins. These currencies are normally used by criminals operating on the dark web or the hidden web. Legal, bonafide businesses do not normally use Bitcoins. Therefore, any request for business transactions in Bitcoins should raise suspicious and should be avoided.2.255)Ransomware payouts saw a massive increase in 2020, with nearly $370 million paid in cryptocurrency. Ransomware, a form of malware, typically infiltrates a system by using a malicious attachment or embedded link, or by exploiting a vulnerability Attackers threaten to release sensitive data or prevent system access unless a ransome is paid. These attacks target businesses and governments and have the potential to cripple critical infrastructure, such as hospitals Cryptocurrencies are an ideal vehicle used by criminals to operate scams: they are instant, anonymous, borderless, and require no formality between parties. Scams can take many phishing scams, and investment scams are just a few popular variations that have made recent headlines.
TYPE OF WHAT IS CRYPTOCURRENCY CRIME?
- Cryptocurrency ransomware attack
Ransomware payouts saw a massive increase in 2020, with nearly $370 million paid in cryptocurrency. Ransomware, a form of malware, typically infiltrates a system by using a malicious attachment or embedded link, or by exploiting a vulnerability. Attackers threaten to release sensitive data or prevent system access unless a ransom is paid. These attacks target businesses and governments and have the potential to cripple critical infrastructure, such as hospitals. - Cryptocurrency Scams
Cryptocurrencies are an ideal vehicle used by criminals to operate scams: they are instant, anonymous, borderless, and require no formality between parties. Scams can take many forms: Ponzi schemes, phishing scams, and investment scams are just a few popular variations that have made recent headlines. The largest crypto scam in 2020 was the Mirror Trading International (MTA) scam, originating in South Africa. In this $588 million Ponzi scheme, victims were also promised investment returns, only to find that they could no longer access or withdraw their funds. - Darknet markets & trade
Darknet marketplaces are websites, hosted on the dark web. They can only be accessed over TOR, thus allowing for secured and anonymous browsing. Dark marketplaces are account for over $1.7 billion worth of cryptocurrency transactions in 2020. - Cryptocurrency Crimes
In 2021, the NCB (Narcotics Control Bureau) had been investigating cases where drugs were bought using Bitcoin. Consequently, Makarand Adivirkar, who is known as the “crypto king” in Mumbai, was arrested in June 2021, for allegedly using Bitcoins to buy illegal narcotic drugs. Thereafter, NCB requested “Binance”, and got his account frozen.
