Security News > 2021 > July > Disrupting Ransomware by Disrupting Bitcoin

Paying a ransom starts with a victim turning a large sum of money into bitcoin and then transferring it to a criminal controlled "Account." Bitcoin is, in itself, useless to the criminal.

In a chain swap, the criminal transfers the bitcoin to a shady offshore cryptocurrency exchange.

So the background speculators are mostly balanced: One bitcoin in results in one bitcoin out.

There are exceptions involving offshore exchanges and speculation among different cryptocurrencies, but they're marginal, and only involve turning one bitcoin into a little more or a little less.

While this is intended to target tax evasion, it has the side consequence of disrupting those offshore exchanges criminals rely to launder their bitcoin.

Enough little disruptions, a "Death of a thousand cuts" through new and existing regulation, should make bitcoin no longer usable for ransomware.

News URL

https://www.schneier.com/blog/archives/2021/07/disrupting-ransomware-by-disrupting-bitcoin.html