No, Cryptocurrency Is Not Causing Any Ransomware Surge

　　Christian Devolu of Vice claims that cryptocurrency has fundamentally altered the way cybercrime is perpetrated. Previously, hackers used ransomware to steal money from big organizations; now, he claims, they are demanding cryptocurrency as payment. Crypto, he says, spawned the ransomware crisis.

　　What is the difference between cryptocurrency and ransomware？

　　On the other hand, the US Department of the Treasury this month produced a series of publications examining various areas of money laundering and terrorism financing. Despite the numerous risks involved with illicit financial operations, like money laundering and ransomware, they continue to feel that traditional networks and currencies are more prevalent in these areas.

　　Vice examined 40 ransom payments made via money transfers between 2014 and this year's January. The majority of the funds were transferred via Western Union and MoneyGram, with transactions handled by lesser-known organizations such as Ria and Wal-Mart.

　　According to their estimations, Mexican criminal organizations have earned over $800 million over the last decade by kidnapping migrants. Additionally, money-transfer providers have been receiving a percentage of each transaction.

　　The costs that individuals pay to be smuggled into the United States are frequently less than the ransom they would pay. American businesses also benefit from these arrangements by profiting from the coyotes. The cost of crossing the border illegally ranges from $150 to $15,000. According to law enforcement agencies and think tanks, the total sum paid to smugglers for unlawful activity is estimated to be over $2 billion each year.

　　Businesses are earning from the illicit economy at an increasing rate by turning a blind eye to payments made to smugglers and extortionists. Additionally, they found that policymakers frequently overlook the role that US firms play in restricting money flow.

　　Cryptocurrency as a Means of Money Laundering

　　Due to their increasing sophistication and invisibility, the NMFS highlighted virtual assets as an emerging threat to money launderers. Additionally, it cautioned against the usage of DeFi and other anonymizing technologies.

　　Apart from financial transactions, virtual assets have been linked to a variety of cyber-attacks. Motivated by the unpredictable cryptocurrency market, scammers might entice victims into exposing their personal information by promising them fortune. Following the attack, they demand payment in virtual assets.

　　The report warned that the use of cryptocurrency as a means of money laundering is increasing. It quoted a Chainalysis study that found that in 2021, more money would be routed to criminal locations via blockchain technology.

　　Despite the rise of virtual currencies, the United States Treasury Department continues to view fiat currency as the preferred form of money laundering. They assert that the utilization of virtual assets is significantly less than that of traditional approaches. Notably, Chainalysis reports that the market's share of illicit funds has plummeted to an all-time low of 0.15 percent.

　　Is Cryptocurrency Effective in Combating Crime？

　　While cryptocurrencies might assist users in evading financial controls, they can also be used by criminals. On the other hand, they may assist users in concealing their holdings.

　　On the other side, the majority of blockchains, including Bitcoin, make use of open public ledgers to aid law enforcement in locating criminals. Companies such as Chainalysis can monitor the Bitcoin used by criminals following ransom payments. They can then assist law enforcement in reclaiming the monies.

　　Recent months have seen an increase in concerns regarding the use of cryptocurrency in criminal transactions. Officials are already examining measures to prevent Russia from evading sanctions through the use of digital currency. Tom Robinson, CEO of Elliptic, highlighted that while individuals can use cryptocurrencies to circumvent sanctions, they are not a panacea.