Musk was threatened by hackers How should cryptocurrency crimes be tracked?

When “black money” flows into professional trading platforms, what awaits them is likely to be a severe black money blocker.

Musk was threatened by hackers How should cryptocurrency crimes be tracked?

On June 5, Elon Musk, CEO of Tesla and founder of SpaceX, was targeted by hackers and publicly threatened by the international hacking group Anonymous on social media.

The incident began when a social media account calling itself Anonymous tweeted a video slamming Musk for “constantly provoking” the cryptocurrency market and saying in a threatening tone, “You’ve met your match. We are ‘Anonymous’ and there are many of us, wait for it!”

The incident quickly sparked a heated debate among netizens as the tech mogul was threatened by a well-known international hacking group. At this stage, with the development of blockchain technology, problems such as online blackmail by hackers, telecom fraud against cryptocurrencies, piggy banks, and pyramid money boards have also started to occur frequently. In this regard, some industry insiders said that in response to the detection of new crimes involving digital currencies, the relevant departments should have the ability to track cryptocurrencies and explore the construction of a criminal wealth investigation method system for crypto assets.

However, the problem is that “blackmail” cases also often face very great difficulties in tracking on the chain, for example, the most urgent challenge is how to track, forensic, identify and investigate the digital currency assets involved, which is beyond the scope of the traditional case handling process.

Professional blockchain enterprises are an important grip for solving currency-related cases

On July 4, 2019, CCTV’s Rule of Law Online reported on a telecom fraud case with “renovated methods. The report showed that the fraud suspects, after the successful telecom fraud, did not use the traditional telecom fraud usual “‘primary card’ to transfer to multiple “secondary card” or “tertiary card”, and then withdraw cash from the ATM respectively”; but after transferring to the “secondary card”, first from the digital currency trading platform to buy bitcoin and other digital currency, and seek to sell bitcoin again to disguise the fraudulent money “whitewash”.

Due to the special nature of digital currencies, the flow of funds is not easy to track, which creates technical difficulties for the police to solve the case.

However, with the assistance of FireCoin, the police successfully traced the digital currency accounts and transaction process used by the suspects, and finally locked the suspects and arrested them, thus successfully solving the case.

This is just one of the examples of blockchain companies assisting the relevant authorities in tracking blackmail crimes. Public information shows that since 2018, FireCoin has launched the research and application of on-chain tracking analysis, and through its technical means, it has provided more than a hundred times of assistance to police in 30 provinces and cities across China in data analysis, evidence collection and fund tracing of cases involving currency fraud, money laundering and pyramid schemes, and has brought great efficiency improvement to many domestic and foreign regulatory and supervisory agencies in on-chain tracking and tracing.

With the real challenge of difficult on-chain asset tracing on one side and the short-time dilemma beyond the scope of traditional case handling process on the other side, it is obvious that blockchain enterprises undoubtedly play an important role here, because criminals want to cash out the crypto assets in their hands for large amounts, and centralized exchanges are always an important channel that is difficult to avoid.

In the future, as the global cryptocurrency market continues to expand, the technical characteristics of blockchain are mainly global, anonymous, instantaneous and complex, which makes the investigation of related black money crimes by relevant authorities full of uncertainty. However, when the “black money” flows into the professional trading platform, what awaits them is likely to be a severe black money blocker.

Chain tracking and traceability make blockchain evil behavior invisible

Although cryptocurrency exchanges, as the closest place to the money, can effectively assist the authorities to block the flow of black money, it also raises another important question, how should we identify “black money”?

At present, digital currencies generally have the feature of anonymity, and it will be very difficult to trace back after the transactions on the chain are confused and transferred many times. This makes asset tracking a certain technical threshold and time window, such as whether there is a large number of on-chain address labels, and whether there is timely warning after the target assets have changed.

In addition, the intricate and complex transaction environment on the digital currency chain, where coins, mixed coins, cross-chains, DEX, DeFi lending and other forms of transactions can be mixed and matched, greatly increases the complexity of asset tracking.

All of the above poses a lot of challenges for the authorities to conduct on-chain asset tracking. For this reason, it is especially important to have an on-chain tracking and analysis system and professional help. For example, on June 3, Firecoin announced the official establishment of “Wuji Security Lab”, which is understood to be composed of experts in the fields of internal and external security, risk control and compliance, focusing on on-chain intelligence analysis, security attack and defense confrontation, risk control, combating evil behavior using blockchain, and researching and exploring compliance strategies.

To put it simply, the addition of FireCoin’s “Wuji Lab” will track and monitor all suspicious on-chain malpractice, so that on-chain tracking can be traced back to the source and blockchain malpractice can be invisible.

In fact, as one of the earliest companies in the world to explore the blockchain field, Firecoin officially started the research and application of on-chain tracking analysis as early as 2018. 2019, Firecoin launched the Start Atlas on-chain tracking system for the first time, and tried to use it in some fields.

It is understood that the system has accumulated more than 1 billion on-chain data, security intelligence data and event analysis data, and the number of identifiable addresses is more than 150 million, among which more than 200,000 malicious addresses have been tracked and marked in the laboratory, with types covering multiple dimensions such as mixed coins, dark net, capital disk and pig killing disk, assisting users to quickly complete on-chain asset tracking and positioning and confirming asset flow. Compared with the current 150 million addresses held by Ether, the number of addresses held by Bitcoin is only 37 million, which shows how powerful Wuji Lab is in terms of blockchain big data.

For the establishment of “Wuji Lab”, some industry insiders believe that the Wuji Lab of Firecoin is estimated to be a benchmark for the U.S. data analysis company Chainalysis, which is currently the most important crypto analysis contractor of the U.S. government. Now that the blockchain big data track is still a blue ocean, the entry of FireCoin may have a “catfish effect” and accelerate the development of global competition in the field of blockchain big data and security.

Of course, the exchange is only one of the links in the fight against new cryptocurrency crimes. Faced with the cyber security issues and challenges brought by the rapidly developing blockchain and digital currency industries, the relevant departments should also actively integrate multiple technical resources, work together to form an effective method and system to combat new cryptocurrency crimes, and improve cyber security and governance in the blockchain digital era.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-07 10:36
Next 2021-06-07 10:41

Related articles