Category: Blog-new

A recent report by blockchain analysts reveals a noteworthy decrease in crypto-related crimes throughout 2023. However, a closer look at the findings underscores a significant surge in ransomware and darknet market activities involving cryptocurrencies.

Ransomware Inflows Hit New Heights

Eric Jardine, a cybercrime researcher, sheds light on the concerning trend. He points out that ransomware and darknet market wallets experienced increased inflows in 2023 compared to the previous year when measured in euros. In the realm of ransomware, heightened inflows indicate that victims – individuals to critical infrastructure providers – are paying larger ransoms after falling prey to cyberattacks by malicious actors.

Darknet Markets: A Resilient Ecosystem

Jardine notes that the surge in darknet market activities can be attributed to the recovery of the illicit darknet ecosystem. The closure of Hydra Marketplace in 2022, one of the largest darknet marketplaces, reduced the inflows to darknet markets that year. However, this closure also triggered increased darknet market activity throughout 2023.

Historical Context: Cryptocurrency and Darknet Marketplaces

Another researcher draws attention to the historical use of cryptocurrencies in darknet marketplaces. Notable examples include The Silk Road, known for utilising Bitcoin in money laundering and illegal drug transactions, and the closure of Abraxas in 2015. Surprisingly, in 2023, an entity moved 4,800 BTC – valued at €144 million – from a wallet tied to Abraxas.

Ransomware Attacks on the Rise

Beyond darknet markets, ransomware attacks involving cryptocurrency witnessed a substantial increase in the past year. According to a bug bounty platform Immunefi report, the top 10 crypto-ransomware attacks since 2020 have profited €69,316,140 in Bitcoin. 

Nir Duan, CEO of Sayfer – a blockchain cybersecurity company, attributes this surge to the prevalence of malware-as-a-service (MaaS). Duan emphasises that these services allow individuals to execute attacks without advanced technical skills.

Evolving Threats: Phishing and “Crypto Drainer” Malware

Duan points to the rise of phishing-as-a-service infrastructure, citing examples like pig butchering schemes. These schemes involve enticing individuals to deposit money using various tactics, resulting in substantial financial losses.

Additionally, a recent report from cybersecurity company Group-IB highlights the increasing use of “crypto drainer” malware. The Inferno Drainer, a phishing operation functioning under the “scam-as-a-service” model, compromised approximately 130,000 victims and stole nearly €87 million of digital assets in 2023.

Responding to the Surge in Crypto Crimes

Efforts are underway to combat the escalating threat of ransomware and darknet market crimes. The creation of The Darknet Marketplace and Digital Currency Crimes Task Force in June 2023 aims to target “cryptocurrency-enabled crimes” such as drug trafficking, money laundering, and child exploitation.

Jardine emphasises the role of law enforcement in locating and apprehending perpetrators. He notes that the traceability of blockchains facilitates such enforcement actions.

Proactive Measures and Future Outlook

Despite the challenges, proactive measures are being taken. Duan shares that Sayfer is developing an on-chain-off-chain investigation tool to detect underlying infrastructure used in attacks, aiming for a more effective defence against evolving malware techniques.

However, Duan and Jardine express concerns about the persistence and growth of ransomware and darknet market crimes using cryptocurrency. Duan cites the franchising of malware tools and advancing technology as contributors to the continued rise in criminal activities.

In conclusion, while the use of cryptocurrency grows, enforcement actions and proactive measures become crucial to mitigate the impact of these evolving cyber threats. The landscape of crypto-related crimes is dynamic, demanding ongoing adaptation and collaboration across sectors to maintain a safer digital environment.

As we enter the dynamic realm of 2024, the crypto landscape is set to undergo groundbreaking shifts, unveiling new technologies, evolving regulations, and more. Coinsdrom delves into the upcoming trends, offering insights into the transformative journey ahead.

1. Bitcoin Halving: Anticipation Builds for a Web3 Surge

The countdown to the Bitcoin halving event in April 2024 has commenced, echoing historical trends that have pumped the value of Bitcoin. This event, occurring every four years, restricts new Bitcoin influx, potentially injecting fresh enthusiasm into the Web3 landscape. Coinsdrom will closely monitor the impacts, witnessing how this event shapes the year’s trajectory.

2. Data Connectivity Revolution: Bridging Blockchains

In 2024, the crypto space anticipates a convergence of blockchains, introducing innovative solutions like multisig wallets, multichain, parachain, bridges, interoperability, and oracles. These advancements aim to facilitate seamless data transfer between blockchains and sources, unlocking the technology’s true potential. As the data connects, scalability becomes paramount, catching the eye of industries reliant on robust communication.

3. TradFi and DeFi Convergence: Navigating Turbulent Waters

With digital banking projected to embrace 3.6 billion people by 2024, the intersection of decentralised finance and traditional finance becomes inevitable. The challenge lies in integrating regulatory practices for stability while allowing TradFi to leverage DeFi and blockchain technology to address global economic issues. Coinsdrom observes the turbulent meeting of minds, seeking opportunities for sustainable financial collaborations.

4. Regenerative Finance (ReFi): Proving Green Credentials

Sustainability takes centre stage with the rise of regenerative finance. Projects like Energy Web, Celo, and Regen Network showcase real-world utility for cryptocurrencies, aligning with new regulations emphasising corporate social responsibility. Coinsdrom recognizes the significance of blockchain in countering greenwashing, providing irrefutable proof of environmental claims and demanding authenticity in pursuing a greener future.

5. AI Agents in Crypto: Shaping Digital Asset Perception

Artificial Intelligence infiltrates crypto markets, revolutionising trading strategies and enhancing experiences in the metaverse. Projects like Ocean Protocol and Cosmos explore the synergies of AI and crypto, paving the way for innovative use cases. Coinsdrom observes the symbiotic relationship, recognizing the potential to unlock novel applications across diverse sectors.

6. Game-Within-Game Economies: Beyond Gaming as Usual

Online content creators leverage technology to breathe life into new revenue streams, assets, and virtual worlds. The expansion of players into Web3 through gaming platforms is evident. Blockchain-based games are poised to dominate the crypto landscape in 2024, presenting an opportunity to tap into new audiences and foster greater adoption. Coinsdrom acknowledges the growth of niche economies within platforms like Upland, showcasing the fascinating emergence of player-driven innovations.

7. Regulatory Dynamics: Navigating Crypto’s Legal Landscape

Expect regulatory drama in 2024 as lawmakers and lawyers grapple with understanding, evaluating, and monitoring the crypto world. Coinsdrom recognizes the intricate blend of technology, hidden treasures, and communities shaping the crypto landscape. The collaboration between AI and decentralised technologies emerges as a potent catalyst, propelling the industry into uncharted territories of possibility and growth.

As the crypto landscape evolves, Coinsdrom watches the release of new, innovative services, and provides opportunities for users to explore the crypto world. The stage is set for 2024 to unfold a tapestry of possibilities in the ever-evolving crypto narrative.

The Financial Conduct Authority (FCA) has extended its regulatory reach to include crypto asset promotions, aiming to provide consumers with accurate information and adequate risk warnings. As of October 8, 2023, firms involved in promoting crypto assets in the UK must be authorised or registered by the FCA, or have their marketing approved by an authorised firm.

Common Issues Identified by the FCA:

1. Misleading Claims: Some promotions make exaggerated claims about the ‘safety,’ ‘security,’ or ease of using crypto asset services without adequately highlighting the inherent risks.
2. Visibility of Risk Warnings: Risk warnings are not sufficiently visible due to small fonts, hard-to-read colouring, or non-prominent positioning.
3. Lack of Information: Firms fail to provide customers with adequate information on the risks associated with promoting specific products.

FCA’s Actions:

• Authorised firms approving crypto asset financial promotions must take their regulatory obligations seriously. Non-compliance may result in restrictions, as the FCA has already taken action against an authorised firm.
• Collaborating with social media platforms, app stores, search engines, and domain name registrars to remove or block illegal promotions.
• Working with payments firms to limit UK consumer exposure to firms issuing illegal promotions.
• Issuing 221 alerts against firms illegally promoting crypto assets to UK consumers since the new regime went live.

Consumers’ Role:

• Check the FCA’s Warning List before making any crypto decision to identify firms whose promotions may be breaking the law.
• Understand that even with new marketing rules, crypto assets remain high-risk and largely unregulated, and consumer protections may be limited if something goes wrong.

Coinsdrom’s Commitment:

Coinsdrom emphasises transparency throughout the entire process of buying and selling cryptocurrency. Users need to be aware of the risks involved in the crypto industry. While Coinsdrom provides a transaction platform, users are encouraged to exercise due diligence, conduct research, and make informed decisions.

Key Information for Firms Promoting Crypto Assets:

• Authorised or registered status is required by law for firms promoting crypto assets in the UK.
• Promotions must be clear, fair, and not misleading, with prominent risk warnings.
• The financial promotion regime applies to all firms marketing crypto assets to UK consumers, regardless of their location.
• Four lawful routes for communicating crypto asset promotions, including authorization, approval, registration under Money Laundering Regulations, or compliance with exemption conditions.
• Firms engaging in good faith with the FCA for compliance will be treated proportionately, but non-compliance will lead to robust actions to protect consumers.

The FCA’s new financial promotion rules align with its core commitments to reduce harm, set higher standards, and promote competition and positive change. Coinsdrom encourages users to approach crypto assets cautiously, considering the FCA’s warnings and the risks associated with the crypto market.

In a recent interview with Business Insider, Steve Wozniak, co-founder of Apple, emphasised his trust in Bitcoin, labelling it as having “pure gold mathematics.” Despite his enthusiasm for Bitcoin, Wozniak expressed scepticism regarding other cryptocurrencies and NFTs, highlighting potential risks for users.

Bitcoin’s Solid Foundation

Wozniak’s confidence in Bitcoin stems from its robust mathematical underpinnings. He equates its stability to gold, emphasising the importance of these calculations in safeguarding its value. While Wozniak didn’t delve into technical specifics, his endorsement aligns with Bitcoin’s reputation as a secure and enduring “store of value.”

“Bitcoin is the only digital gold that has this mathematical nature. It’s pure gold mathematics.” – Steve Wozniak.

Caution Amidst Crypto Diversity

While championing Bitcoin, Wozniak cautioned users exploring other cryptocurrencies and NFT projects. He expressed concerns about the motivations of project founders, suggesting the potential exploitation of early-stage users.

Unicorn: A Unique Perspective

Wozniak, a judge on the Unicorn Hunters TV show, showcased a more positive outlook on Unicorn, a cryptocurrency featured on the program. Unicorn aims to address volatility concerns and protect holders from inflation, presenting itself as an opportunity for broader participation in the startup world.

“Unicorn is not just words and talks; it’s real financial strategy,” said Steve Wozniak.

Despite his optimism for Unicorn, Wozniak refrained from explicitly comparing its underlying technology to that of Bitcoin. His involvement in the cryptocurrency space, coupled with his measured endorsement of specific projects, provides nuanced insights into the evolving crypto landscape.

Key Takeaways for Crypto Users

Wozniak’s perspective is a valuable guide for crypto users navigating the dynamic cryptocurrency market. Understanding the unique attributes and potential risks associated with different cryptocurrencies becomes increasingly crucial as the industry matures. Crypto users are encouraged to approach the market discerningly, considering the diverse landscape shaped by technological nuances and varying project intentions.

Note:

This article is intended to provide insights into the opinions expressed by Steve Wozniak, co-founder of Apple, regarding cryptocurrency, specifically Bitcoin. Readers must understand that the article does not endorse or support any cryptocurrency. The views expressed by Wozniak are personal and represent his individual perspective on the subject.

Readers are strongly advised to exercise caution when exchanging cryptocurrencies. Coinsdrom, as an online exchange, does not provide  financial advice. This article should not be construed as such. Coinsdrom strives to provide informative content, but users should independently assess the opportunities and risks associated with cryptocurrency.