According to a new report from cryptocurrency tracking and analytics firm Chainalysis, Russia is linked to the majority of crypto hacks and cybercrimes, especially when you consider that 74 percent of ransomware revenue in 2021, is worth over $400 million (roughly Rs. 3,005 crores) in cryptocurrency, went to accounts affiliated with the country in some way. The investigation, which was conducted as part of Chainalysis’ 2022 Crypto Crime Report, focused on a number of dozen businesses in Moscow City, the Russian capital’s business district.
As per the survey, “illicit and dangerous” blockchain addresses account for between 29% and 48% of all payments received by cryptocurrency businesses in any given quarter. According to Chainalysis, that traffic, which includes valid crypto transactions, can reach more than $1 billion (approximately Rs. 7,510 crores) in a quarter.
“A huge amount of cryptocurrency-based money laundering, not just of ransomware funds but of funds associated with other forms of cybercrime as well, goes through services with substantial operations in Russia,” Chainalysis says.
According to the report, Russia has a long history of being a shelter for hackers due to the country’s emphasis on coding instruction, computer sciences, and information technology education among students starting from middle and high school. Due to the lack of genuine career opportunities for such competent professionals, many turn to cybercrime and crypto assaults for a living. According to Chainalysis, given this scenario, it’s no surprise that Russia is the global leader in ransomware.
Not only does Russia lead in terms of ransomware perpetrators; according to Chainalysis blockchain forensics and Web traffic statistics, the majority of extorted cash is also laundered through services predominantly catering to Russian customers when any form of ransomware attack occurs. According to the study, the Federation Tower in Moscow City is home to a high number of hackers.
The Federation Tower is a complex in the heart of Moscow City that is widely regarded as one of Russia’s most recognizable and significant structures. According to Bloomberg, the facility includes numerous notable firms as well as a growing cybercrime collective.
“Nothing is more emblematic of the growth of Russia’s crypto crime ecosystem, and of cybercriminals’ ability to operate with apparent impunity, than the presence of so many cryptocurrency businesses linked to money laundering in one of the capital city’s most notable landmarks,” as stated in the Chainalysis report.
However, Chainalysis did not examine the possible consequences of Russian law enforcement’s January sting against the REvil ransomware gang, noting that analysts have suggested that the arrests “may not represent a serious commitment to combating ransomware.” Despite the illicit activities, Russia is one of the most advanced countries in terms of bitcoin adoption, ranking 18th in the Global Crypto Adoption Index.