binance accounts may have been used to launder over $1 million in proceeds from ‘ryuk’ ransomware, according to a new investigative report. The findings confirm that digital asset exchanges have a problem with illicit use, one for which they are not fully equipped.
An anonymous research team compiled the report, which was shown to Binance and Forbes blogger Billy Bambrough. sampled 63 transactions worth approximately $5.7 million and found that $1,064,865 worth of btc was sent to various addresses before ending up in a binance wallet, before being exchanged and cashed out.
Reading: Report ryuk bitcoin binance
binance responded by noting that it is always fighting money laundering and other malicious activities, describing it as “an endless effort.” it then pointed to a number of its detection procedures and algorithms used to “flag potentially malicious activity”.
As sophisticated as the techniques are, they are clearly not enough to prevent criminal groups from operating on Binance. according to the report, the binance account associated with the transactions was still active this month.
Issues with the proceeds of criminal activity continue to plague the world of blockchain and digital assets (and, it should be said, the “traditional” international banking system). btc, however, is particularly associated with ransomware, as it allows transactions of any size to be sent to a numbered, pseudonymous address. it is also the best known and most accessible digital asset. only by performing a forensic analysis of transactions from that address and associated addresses can investigators hope to find the real-world identities that control them.
See also: Bitcoin Revolution Recenzja. Czy Bot to Oszustwo? 2022
Regulators and law enforcement agencies around the world are well aware of this problem and are introducing increasingly stringent regulations (such as the European Union’s AMLD5) to combat it. exchanges like binance, and even wallet custody services, will soon be subject to increased scrutiny.
what is ryuk?
According to crowdstrike, ryuk is a form of ransomware unleashed on the world by a russia-based criminal group as part of the magic spider criminal enterprise. First seen in August 2018, ryuk is similar to the earlier hermes ransomware and is primarily targeted at large companies.
Otherwise, it works much like other ransomware attacks. It encrypts files on the victim’s computer and other hosts on that network, promising decryption and recovery if a btc ransom is paid. It has typically been spread by users clicking links in spam emails and using tricks to carry out its attack on targeted systems.
why binance?
As one of the most popular digital asset exchanges in the world, Binance has become a preferred destination for this type of activity. has long been known for its ease of use and large number of listed assets, ease of which includes accounts that are easy to create.
In jurisdictions where digital-to-fiat transactions are allowed, such as Jersey and Kenya, Binance has similar KYC procedures to other exchanges, requiring a new user to present a valid national ID card, permanent resident card or passport. . if accepted, users must validate their residential address. however, it does not require the often standard “selfie with ID” and has lower-tier accounts available in non-fiduciary trading jurisdictions for registration with just an email address.
said in 2018 that it had partnered with knowledge-of-client service provider refinitiv (a division of thomson reuters) and analytics firm chainalysis to investigate blockchain transactions.
The large number of transactions that go through the binance system makes it difficult to track and detect all criminal activity. however, that does not mean that blockchain advocates can simply shrug their shoulders and absolve themselves of responsibility.
bitcoin bsv strives for a more accountable and auditable blockchain world, one that preserves individual privacy but not total anonymity. complete anonymity, whether we like it or not, eventually causes a breakdown of trust and dysfunction in a society, reducing value in an economy rather than creating it. Where crime is easier, the criminals and the corrupt always flock. accountability is the only workable solution available, and a public blockchain where everyone is bound by the same rules is preferable to crypto-anarchists promising new ways around them.
new to bitcoin? check out coingeek’s bitcoin for beginners section, the ultimate resource guide for more information on bitcoin such as as originally conceived by satoshi nakamoto—and blockchain.
See also: What is cryptocurrency CFD trading? – Coin Rivet
