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Digital currency becomes the first choice for ransom

A memo from the Center on Sanctions & Illicit Finance shows that in 2016, about 15 percent of bitcoins used for money laundering came from cyber-attack ransoms, up from just 0.87 percent in 2015.

Ransomwarn is a network attack software that infects a computer and encrypts the data on the computer so that the victim cannot access the relevant data. Only when the victim pays the attacker a certain amount of Bitcoin, the attacked computer will will return to normal.

Cyber-extortion attacks in 2016 caused losses of 4-6 billion US dollars globally. It is difficult to know exactly how much money attackers made in these attacks. What is certain is that digital currency plays a role and is respected. In a criminal record held by the Cryptocurrency Association, the North Korean cybergroup that carried out the wannacry attack purchased code for the attack from a hacking group known as the Shadow Brokers, which only accepts two privacy-focused numbers. Currencies — Monero and Zcash.

For criminals, there is a great risk where to get the ransom. Who knows if there is a trap? What if the victim had a gun? What if the attacker accidentally leaves the victim with enough information to identify themselves? What if bystanders witnessed the transaction in action? All of this needs to be done carefully, not to mention walking around with large amounts of cash, which can make you an easy target for the police or other criminal gangs.

Digital currencies solve many of the "classic puzzles" about ransom. Using digital currency as a ransom, the attacker only needs to leave a bitcoin wallet address on the victim's computer, as well as some instructions for the victim, including downloading the digital currency wallet, exchanging bitcoin, and sending it to the corresponding wallet address. As long as the victim follows the instructions of the attacker, such a ransomware incident can be concluded perfectly, and the attacker and the victim don't even have to get out of bed.

Using digital currency as a ransom also allows criminals to target people they will never meet in real life, thus increasing the number of potential victims of extortion.

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To mine, hackers steal electricity and computing power

The current high cost of electricity to mine Bitcoin makes it difficult to mine profitably. Early miners got a good balance between giving and receiving, but today the supply of bitcoin is slower, and without good mining equipment, miners are not necessarily profitable. Even with powerful mining equipment, cost reasons will make mining an uncertain thing.

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Digital currencies are the new darling of illicit transactions

Digital currencies are gradually replacing cash as the currency of choice in illicit transactions. How to transfer large amounts of money has long been a problem that has plagued drug dealers. Cash is the king of illegal transactions, but also its weakness, because the financing of these cash needs to rely on traditional financial companies, such as banks, etc., but law enforcement officers like to stare at money, resulting in the arrest of many criminals. The reason why digital currency is highly regarded is that it can transfer currency without relying on a third party. The convenience of cross-border circulation of digital currency shortens the timeliness and process, which is conducive to protecting the security of illegally obtained funds during the transfer process. .

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The idea brought about by the Bitcoin white paper is revolutionary. The core idea of ​​Bitcoin, including the blockchain, has the potential to disrupt and reshape not just the criminal industry. The story of Bitcoin reminds us that this "trustless" payment medium also has its legitimate application scenarios.

The direction of digital currency largely depends on the goals of the research and the attitude of the government. When we try to intervene in the direction of digital currency, we should consider all its application scenarios, not just the ones we want it to be applied.