The dark side of crypto: Cyber-attackers demand $70m in Bitcoin

The popularity of cryptocurrencies has increased monumentally over time and has helped them grow in value significantly, making them attractive. Everyone wants a slice of the Bitcoin pie, especially as it reached its highest value not long ago. The drastic increase in Bitcoin value shows excellent promise for cryptocurrencies all around, which has helped birth a diverse range of cryptos on today’s markets.

However, its popularity has also attracted some threatening behaviour, and as cryptocurrencies are digital currencies, the increased fears of cybercrimes relating to crypto have increased. The covid-19 pandemic has taken the world deeper into the online world. The ease of using online and the hunger for owning crypto has led to ransomware attacks. The pandemic fueled the attacks and have become a significant money-maker for cybercriminals, increasing the number of attacks in 2020.

Major corporations have been targeted in these attacks, and some have been forced to pay cyber-attackers an eye-watering amount of funds. For example, a colossal ransomware attack on IT provider Kaseya conducted by the REvil group, formerly known as Sodinokibi, demanded $70million in Bitcoin in return for a universal decryptor, claiming it will unlock the files of all victims. The attack locked hundreds of downstream victims out of their systems, making headlines and included an attack on global meat processing company JBS.

According to its own figures, the colossal ransomware attack by the gangs hit more than a million systems. The company said that a few dozen of its customers were affected by the largest ransomware attack on record. The domino effects affected companies in 17 countries, including the US and Britain. One expert said it was “unprecedented in scale and complexity.” The attack has attracted high attention and warnings from various government agencies around the world.

US President Joe Biden addressed Vladimir Putin about the fact that ransomware gangs can operate with impunity in Russia, and announced an investigation. It is estimated that between 800 and 1,500 medium-sized and small businesses are affected by the attack. In addition, hackers demand $50 million – much less than previously reported $70 million – in exchange for access to the data held for ransom.

The operator of REvil said he had infected millions of systems and demanded a ransom of $70 million dollars in bitcoin to provide a universal decryptor. The ransom would allow everyone in less than an hour to regain access to their systems and data via all devices, but it is unlikely that this will run smoothly.

Microsoft has warned that the Russian hacking group has targeted government agencies, NGOs, consultants and think tanks as clients in more sophisticated attacks. Joe Biden plans to raise the issue at the two leaders meeting with Russian President Vladimir Putin in Switzerland.

A Biden administration will emphasize that the Russian government is not behind the cyber attacks and ransomware attacks on US governments and commercial entities, but rather the countries that harbour and are responsible for dealing with cybercriminal gangs. Earlier, FBI director Christopher Wray warned that tackling the threat was akin to fighting the international terrorist threat to the United States after the hijacking of an al-Qaeda plane on September 11.

The REvil group combined a supply chain attack with a ransomware attack, in which the company’s IT systems were encrypted and rendered unusable. The attack targeted Kaseya and spread to corporate networks via its software.

The rise of cybercrime and ransomware

The work from home movement, thanks to the pandemic, has undoubtedly opened the floodgates for cybercrime and ransomware. As workers step out of the firewalls and securities in place by their employers, criminals have gained more accessible access to data. Cryptocurrencies have also not helped the situation. Although ransomware and cybersecurity have long posed a threat to companies and their infrastructures, their rise in assurances has made them explode in recent years.

Criminals, especially over the pandemic, have found a lucrative path in ransomware, resulting in hackers breaking into networks and seeing data from government to cooperate levels, demanding payment as we have seen above. Employees working remotely mean they are at more risk, which is why their use of VPNs has increased. VPNs are the most secure ways for employees to connect to corporate networks from home, which can save businesses a lot of time and money.

Author Info:

Rebecca Barnatt-Smith

Bio: Rebecca is a freelance journalist, specialising in technology, Crypto and the stock market.

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