From Ransomware to Mining: The Alarming Connection Unveiled by Chainalysis – 257

Mining pools are the new mixers for Cyber criminals this is according to Chain analysis hackers have a new way to Recycle their ill-gotten crypto gains Ransomware hackers have a new money Laundering trick mining new coins to Replace tainted ones blockchain Analytics firm chain analysis said in a Blog post on Thursday the firm located 372 exchange deposit wallets that Received both mining profits and Ransomware proceeds chain analysis wrote These addresses all together have Received 158.3 million dollars from Ransomware related wallets since 2018. Quote overall data or overall the data Suggests that mining pools may play a Key role in Maine in many ransomware Actors money laundering strategy chain Analysis wrote this fashion of money Laundering is becoming an increasingly Popular with ransomware related wallets Sending more and more funds to mining Pools since 2018. Analysis gives an example of a deposit Wallet on an unnamed popular crypto Exchange that received large amounts of Crypto from ransomware incidents and Mining pools of the 94.2 million dollars Worth of cryptocurrency sent to that Deposit address 19.1 million has come from ransomware Dresses in 14.1 million has come from Mining pools chain analysis calculated

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Although the funds always came to the Exchange via intermediary wallets chain Analysis found in instances in which the Wallet receiving ransomware proceeds Sent funds directly to the mining pool Wallet which then sent the coins to the Exchange this might mean that both the Ransomware and the mining related wallet Belong to the same owner who is using Mining as a way to launder criminal Funds chain analysis rope now this is Apparently one single case and an Important note here too is this is not The particular case in which the the Large amount is is being touted as right So in the first case here Um to to be clear the example of the Deposit wallet on an unnamed popular Exchange this one in particular had 19.1 Million from From ransomware dresses in 14.1 for Mining pool addresses so the the way This is stated 19.1 million did not go Into the mining pool and then out from The mining pool to The Exchange address Which is really what they're trying to Frame this as they want it to sound like A lot of money right and then they want To tell you that it's going through Mining pools but in fact what happened Here is that somebody was mining to an Exchange wallet right or sending money From a mining wallet to the same Exchange wallet that also the ransomware

Addresses were sending money to so it Isn't always this particular case and I Would assume that this is a much lower Number because obviously when you're Writing articles like this you want to Make it sound like it's a big deal and When your chain analysis you want to Make it sound like a bigger deal than it Actually is so that clarification I Think is important especially because it Wasn't clarified in this article this Might mean that both the ransomware and The mining related wallets belong to the Same owner of course as what they State The thing here is like From a chain analysis perspective you Can still track this back to the the Actual ransomware addresses so you can Split that off and see how much each is So this feels like to me more of a Targeted attack on proof of work than it Is necessarily a valid concern right Because if we were actually seeing it be Used as full on mixers maybe what you Would see where it would make the most Sense is that you would load up the Payments address wallet from the mining Pool itself right with the ransomware Attack and then pay that out to the Miners and then that way you could have Some sort of mixing done but as soon as This was found out and as soon as it was Basically in the public knowledge that This particular mining pool was

Performing this type of thing users Would more than likely move off of it Because their funds the fees that they Were getting or the payout and they were Awards they were they were getting from The mining pool would be tainted with Basically criminal funds and nobody Wants to have that so it's a little Funny in this scenario though they go on To quote the mining pool acts similarly To a mixer in that it obfuscates the Origin of the funds reminder you can't Trace crypto through Services mining Pools included I mean Can't you though isn't that what you Just said that you could do so let's go Back here right if you say you can't Then why do you have these numbers well First of all these numbers are Calculated because it wasn't laundered Through a mining pool address the money Went from the mining pool to the same Exchange as the ransomware also went to The same exchange wallet so you're able To track that and then it's stated here Right after that that chain analysis did Find instances in which the wallet Receiving ransomware proceeds sent funds Directly to the mining pool wallet which Then sent the coins to The Exchange So If you do find those instances I would Say that you just contradicted yourself It's a little odd

Um I I believe you would be able to Track anything that went into a payments Wallet Essentially Pretty easily right from another wallet Into a payments wallet because that's All it is right a mining pool will have Essentially two wallets it'll have the Wallet that receives the rewards and They'll send those rewards to the Payments wallets then the payment wallet Will go out to the mining pool software The mining pool software will hit the Database calculate the shares and Disperse that out accordingly So I'm pretty sure that you can And creates the illusion that the funds Are proceeds for mining rather than Ransomware the blog post reads the bit Club network scam which pretended to be Operating a crypto mining business until Its operators were indicted by the doj In 2020 also use this scheme chain Analysis Row the wallets attributed to Bitclub used the same set of deposit Addresses on two exchanges as quote a Russian-based Bitcoin mining operation Chain analysis wrote without naming the Mining firm oh you gotta roll Russia Into there if you really want to get People against something you know it's Just make sure you add that in right Away this might have been a trick to Make exchanges believe that the funds

Are coming from mining not from crime Chain analysis wrote exchange deposit Addresses that received money both from Scams and Mining pools received a little Less than 1.1 billion worth of crypto Since 2018 according to the firm I would Like to to hear what you guys your Opinions are in the comment section Below as well as in the live chat to me Like I stated if they are able to Analyze this and and see where Everything is moving from then it goes To show that it's not a great strategy For mixing in the first place right and In from my knowledge of running mining Pools in the past the a wallet a a Payments wallet that is processing Payments to different miners or whatever Is going to still be traceable At the end of the day so if you're Sending anything to that wallet that's Going to be on a majority of chains in Public knowledge I mean obviously There's there's there's privacy change That are going to change this a little Bit as something like Monero or whatever It may be right you could but that's Going to be the same regardless right as Long as you don't send it directly to The exchange it's obfuscated to a Certain extent if you bounce wallets Around with any privacy coin so I don't know it seems a little Click-baity it seems a little targeted

Uh it seems like fun against crypto Mining in general at least from my Perspective as it stands so I'd like to Hear what you guys think thanks for Checking out this clip from the crypto Mining show you can check out the full Episode here or more crypto content down Here also I'd like you to check out my Locals page at son of a tech.locals.com Where you can become a member for free Or choose to be a five dollar a month Supporter that unlocks additional Content

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