Crypto-related ransom payments nearly doubled to a record $1 billion in 2023, according to Chainalysis, a blockchain analytics company.

Compared to $567 million in 2022, scammers who target government offices, hospitals, and schools with ransom demands made $1.1 billion last year.

However, according to Chainalysis, losses from other crypto-related crimes including hacking and scamming decreased in 2023.

The biggest cryptocurrency, bitcoin, has increased 60% since the end of September to $43,134 due to anticipation for the launch of a new U.S. bitcoin ETF and indications that interest rate reductions by central banks globally are imminent.

“An increasing number of new players were attracted by the potential for high profits and lower barriers to entry,” Chainalysis said.

Over the past three years, “big game hunting” has emerged as the most popular tactic, according to Chainalysis, with payments of $1 million or more accounting for a disproportionate amount of ransom earnings.

According to the analytics business, a group of cybercriminals going by the moniker “cl0p” compromised the file-sharing programme MOVEit and received close to $100 million in ransom payments.

The MOVEit software tool, which is commonly used to transfer large amounts of frequently sensitive data, such as social security numbers and pension information, has been linked to cybersecurity breaches that have been reported by hundreds of organisations, including government departments, the UK’s telecom regulator, and the energy giant Shell.

According to a report published in November, the cybercrime gang “Black Basta” had demanded at least $107 million in bitcoin, with a significant portion of the ransom payments being laundered and ending up on the blacklisted Russian cryptocurrency exchange Garantex.

Reports from the UN state that another important source of money for North Korea is the theft of cryptocurrency through ransomware attacks and cyberheists.

Because Chainalysis primarily records bitcoin delivered to wallet addresses that have been flagged as unlawful, its statistics undervalue the role that cryptocurrency plays in all types of criminal activity. Payments for crimes unrelated to cryptocurrency, such as cryptocurrency used in drug trafficking transactions, are not included.

(Adapted from Reuters.com)

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