- Ransomware attacks experienced a significant increase in 2023, culminating in the theft of an unprecedented $1 billion in cryptocurrency, as revealed by a recent Chainalysis report.
- Notable victims of these attacks encompassed a wide range of entities including individuals, institutions, media outlets, hospitals, airlines, and governmental organizations.
- Chainalysis highlighted the emergence of novel ransomware strains such as CL0P, which employed sophisticated "big game hunting" strategies to target corporations.
- To obscure the trail of illicit gains, hackers opted for mixers and cross-chain bridges over centralized exchanges (CEXs) for laundering funds, complicating the tracking process.

Blockchain hacks drained nearly $2 billion from decentralized finance (DeFi) protocols in the past year, as disclosed in a report by Chainalysis, a prominent blockchain security firm. However, a significant revelation within the same report points out that approximately $1 billion of cryptocurrency payments to hackers originated from ransomware attacks.
The escalation in ransomware attacks, reaching an unprecedented high in 2023, has caught the attention of cybersecurity experts. Chainalysis attributes this surge to the emergence of 538 new ransomware variants, with the notorious CL0P being the most prominent among them. The attackers adopted diverse strategies, including the "big game hunting" tactic to target major entities, like hospitals, media outlets, and government institutions.
CL0P, in particular, stood out for exploiting "zero-day vulnerabilities" to access victims' data, opting to publicly expose it instead of encrypting it. Other ransomware variants, such as Phobos, operated on a ransomware-as-a-service (RaaS) model, enabling cybercriminals to share profits with collaborators.
Chainalysis revealed the challenges in tracking and halting ransomware funds, as hackers employed cross-chain bridges, instant exchangers, mixers, and underground exchanges to obfuscate the source and destination of funds. In 2023, only 7% of ransomware payments were directed to centralized exchanges (CEXs), while the majority flowed into alternative platforms with lower Know Your Customer (KYC) requirements and reduced accountability.
The report underscores the need for the crypto community to address the rising threat of ransomware, emphasizing the complexity of criminal strategies and the importance of collaborative efforts in tracking and preventing illicit activities. The fluid movement of funds across different blockchains and platforms highlights the ongoing challenge for law enforcement agencies. As the crypto landscape continues to evolve, vigilance, research, and informed decision-making remain essential in navigating this volatile financial space.
Disclaimer: While Voice of Crypto aims to provide accurate and current information, readers are advised to conduct their research and make independent financial decisions due to the high volatility of cryptocurrencies. The platform is not liable for any missing facts or inaccuracies in the provided information.

#Rasomware #CEX #Chainalysis #cryptocurrency #Crypto2024

First, Binance US was sued by the Security Exchange Commission, and as if it wasn't enough, they went on to apply for Funds of Binance US to be seized. Today, CoinEx has been banned in New York, and the funds of New York users seized temporarily. 

Centralized Exchanges being filed by regulators may not be annoying compared to the inability to withdraw funds due to the lawsuit. Investors are in the cryptocurrency world because they want to move away from the local centralized financial system. They probably manage to leave their funds in centralized exchanges because of the ease of using the exchange. Now, when they face this type of issue of not being able to withdraw funds during a regulatory attack, there is a higher probability of moving out completely from centralized exchanges when they finally receive their seized funds. 

One fact we have to bear in mind is that despite the centralized nature of Centralized exchanges, and the fact that crypto aims for decentralization,  We still need them in the crypto world. The user-friendly nature, and to an extent, the centralized security measure, are what most newbies can hang onto before moving to decentralized wallets and exchanges. 

We hope that most of these attacks on Centralized exchanges will stop. We hope to see regulatory compliance from Centralized Exchanges because crypto has gotten to a stage where regulatory compliance needs to be met by exchanges. Without regulatory compliance, it will be hard for crypto and centralized exchanges to thrive. This is why most top centralized exchanges are seeking regulatory compliance in the countries where they operate. 

 I believe with time, we will have a crypto-friendly world, and those of us who are early investors will appreciate joining the train on time. Centralized exchanges will stay, and decentralized exchanges will also stay. This is to give people the opportunity to choose what they want. 

#CEX #regulation