Binance takes the lead in tackling criminal activity associated with crypto

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Since the 18th century, humanity has witnessed revolutions that changed the world forever, for the better. The closest revolution we have witnessed is the advent of the Internet, the influence of which is so enormous that we can no longer imagine our life without it.

However, you would be seriously wrong if you thought that everything ended with the internet. Humanity, from now on, is at the start of another revolution – a revolution within a revolution. This torch is carried by cryptocurrencies and their basic structure – blockchain technology.

This new technology promises to change the Internet as we know it, from everything related to the financial sector to the information sector. The main selling point of this technology is creating a system designed by people, for people, and for people. And, this very technology has started to grab the attention of everyone across the globe, with Bitcoin and its companions making the headlines with each passing day.

While the potential of cryptocurrencies and blockchain technology is vast, it is by no means without its drawbacks. The most rampant in the cryptoversy right now is ransomware attacks. That being said, it should be noted that ransomware attacks are not exclusively a crypto problem.

Notably, now that this problem is highlighted, several platforms have emerged to curb its association with crypto, if not cut it altogether. And at the forefront of that effort is Binance, one of the world’s largest cryptocurrency exchanges.

What is ransomware?

Now, as the name suggests, ransomware is a type of malware that when it infects your computer or other software device, prevents you from accessing it.

You will only regain control of the devices when you pay the ransom demanded by the bad actors. Think of it like you’re locked out of your own home and the only way to get back is to pay the person who found themselves in this situation.

An attack like this was first reported in Russia in 2005. Since then, millions of such attacks have taken place regularly around the world. And, with the creation of Bitcoin and other cryptocurrencies, they have become the most preferred way to extort money from victims.

The most notable ransomware attack associated with Bitcoin to date is the Wanna Cry ransomware attack that took place in 2017. The malware used for this attack was such that it would spread from one infected PC to another. on networks. The nature of the malware had called it a global epidemic.

The four-day malware attack affected approximately 200,000 people and nearly 150 countries. The attack saw the perpetrators demand the ransom in Bitcoin, with more than $ 140,000 paid by victims in cryptocurrency.

Take charge of the future

As the cases of Bitcoin and other cryptocurrencies being used for illicit activities multiply, efforts to curb those activities multiply as well. This effort saw the evolution of several crypto and blockchain companies actively participating in the search for the source of cryptocurrencies and the movement of illicit actors.

And the one leading by example is Binance, one of the world’s largest cryptocurrency exchanges.

The cryptocurrency exchange has partnered with several law enforcement agencies and implemented advanced methods to keep tabs on the trading activities performed on the platform. The exchange also has a dedicated team – the Security Data Science Team – that focuses on building anti-fraud systems and scaling up investigations.

In a recent blog post, the exchange said:

“At Binance, we believe that tight controls on exchanges, smart legislation and ongoing education will go a long way in eliminating bad players.”

Thanks to its security team and powerful AML detection systems, the exchange succeeded in eliminating two malicious actors associated with the crypto space. The first crackdown came in mid-2020 as part of the Bulletproof Exchanger project.

For this case, the exchange collaborated with the Ukrainian cyber police after detecting suspicious activity. This, in turn, led to the arrest of a cybercriminal organization linked to a ransomware campaign, accused of laundering more than $ 42 million in cryptocurrency. In this particular case, the bad players were using nested exchanges to move their illicit cryptos.

“Projects such as our ‘Bulletproof Exchanger’ and our ongoing partnerships with law enforcement, as well as security analysis and blockchain companies, will be a driving force in improving cybersecurity measures overall. of the crypto industry. “

The second case the exchange was involved in saw the arrest of a criminal organization involved in laundering nearly $ 500 million in ransomware attacks. The group in question is known as FANCYCAT, with its activities involving cyber attacks such as Cl0p and Petya and money laundering from dark web operations.

The exchange’s anti-money laundering system has detected suspicious activity on the exchange. This prompted the platform to dig deeper using clusters. As a result of this, the exchange worked alongside TRM Labs and Crystal – the blockchain analytics companies. This led the exchange to find that these accounts were linked to the Cl0p and Petya money laundering attack funds. All funds from these illegal activities amounted to almost $ 500 million.

This case was immediately classified as high profile because the Cl0p ransomware attack was linked to leading countries and universities. The ransomware attack took four Korean companies and three US universities hostage. The universities in question were the famous Stanford Medical School, the University of Maryland and the University of California.

This operation ultimately resulted in the exchange of handshakes with multiple regulatory authorities. This included the Cyber ​​Police of Ukraine, the Korean National Police Agency, US law enforcement, the Swiss Federal Office of Police and the Spanish Civil Guard.

Interestingly, Binance managed to detect this on its platform despite the activities that take place regularly by taking a two-pronged approach. The first is to implement advanced detection systems and mechanisms to identify and eliminate suspicious accounts. The second part of the approach is working closely with law enforcement to take the right steps to bring down criminal groups.

Since then, the company has adopted several other measures to bring down not only criminal groups engaged in illicit activities, but also the platforms that enable them.

Needless to say, the leading cryptocurrency exchange is on a mission to eliminate bad players from the crypto space.

Disclaimer: This is a paid post and should not be construed as news / advice.

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