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Track illegal activities through the Bitcoin blockchain to combat cryptocurrency related crimes

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While cryptocurrencies like Bitcoin have the potential to break the traditional financial barriers, there are a number of growing concerns over the digital currencies used to finance illegal activities.

According to a she studies At the beginning of this year, about a quarter of Bitcoin users and half of Bitcoin transactions are associated with illegal activities. Approximately $ 72 billion of illegal activities per year involve Bitcoin, which is close to the scale of US and European markets for illegal drugs.

Furthermore, a 2018 she studies conducted by the blockchain analysis startup, Elliptic and the Center on Sanctions and Illicit Finance, found a fivefold increase in the number of large-scale illegal operations that worked on the Bitcoin blockchain between 2013 and 2016. Analyzing the history of over 500,000 bitcoins, organizations have identified 102 criminal entities, which included dark web marketplaces, ponzi schemes and ransomware / malware attacks.

Trace criminal activity through the Bitcoin blockchain

It is interesting to note that many of the digital currencies examined in the study conducted by Elliptic and the Center for sanctions and illicit finances could be traced back to those responsible. For example, it emerged that 95% of all recycled coins detected came from nine web markets, including Silk Road, Silk Road 2.0, Agora and AlphaBay.

By closely examining blockchain activities, companies focused on combating cryptocurrency crimes can identify accounts that appear to belong to the same Bitcoin portfolio and are controlled by the same entity. This process is known as "clustering".

According to Kyrylo Chykhradze, head of Bitfury crystal, a software solution designed to track Bitcoin and Bitcoin Cash Blockchain activities, Crystal collects information on all transactions recorded on the blockchain to determine which addresses belong to the same entity to identify criminal activities.

Using a unique clustering algorithm, Crystal can determine which bitcoin address belongs to certain users. The solution also uses web crawlers and manual registration on various services to name the entities and assign them a risk score based on the type of service. Crystal, who has assisted financial institutions and order forces in identifying and tracking down criminal activities such as extortion and money laundering, assigns a risk score based on each bitcoin address that is never appeared in the blockchain. "

Because financial institutions and law enforcement agencies begin to use tools like Crystal, organizations can easily begin to detect illegal activities that happen through blockchain networks.

For example, the Bitfury Group conducted a report to trace the Bitcoin movement from the Japanese-based Zaif exchange after it had been violated in the month of September. Zaif lost $ 60 million in crypts, including nearly 6,000 bitcoins.

According to the analysis completed by Bitfury's Crystal Blockchain Analytics engineering team, 30% of the stolen Bitcoins are still in hacker addresses. & nbsp; Another 24% was sent to Binance for exchange / withdrawal. The remaining 46% was subdivided into small quantities and sent to various addresses.

Addresses with unknown owners are still under surveillance using the Crystal Blockchain software solution. And because Zaif shared the exact time of unauthorized access, Crystal's engineering team was able to do it to determine which transactions belonged to hackers.

Keep the Crypto community safe offline

In addition to tracing threatening criminal activities through blockchain networks, cryptocracy has also had an impact on the offline world. Recently, there have been numerous crimes in which the victims were forced to hand over the details of the cryptocurrency account, or to face violent consequences.

Because of real attacks, BlockShow, a major blockchain industry event, has announced a partnership with Bitfury to bring Crystal to its next Singapore event, which is expected to attract over 3,000 attendees.

Recently, a group or individual who used phony identities said they planned to sabotage BlockShow Asia with explosives through its community Telegram channels. In addition to reporting threats to the police and increasing security during the event, the BlockShow organizers wanted to give participants the opportunity to recognize the risks that accompany the bitcoin's promise and to get more information about their own vulnerability.

All our events are centered on a simple premise: we believe in the power of blockchain and cryptocurrencies. But we also believe in transparency and we will not ignore the dangers of this promising new technology, "said Addy Creaze, CEO of BlockShow." To a certain extent, the more technology is promising, the more people want to sabotage it. We look forward to helping participants understand and address some of the risks of crypto, as we also explore its undeniable potential. "

All BlockShow Asia participants will have access to Crystal and will be able to scan the QR code of their crypto-wallets to get the user's risk scores. According to Chykhradze, a risk score represents the extent to which a bitcoin address is linked to a questionable activity. This allows all Blockshow participants to check whether their funds may or may not raise suspicions from the authorities.

Bitfury is proud to participate in BlockShow Asia to demonstrate our unique "risk score", which is based on a database we compiled from hundreds of organizations and thousands of individuals who own bitcoin addresses. Participation in Blockshow helps us support the organizers and Bitfury's intentions to draw attention to important cryptography issues – such as trust, transparency and cyber security. "

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While cryptocurrencies like Bitcoin have the potential to break the traditional financial barriers, there are a number of growing concerns over the digital currencies used to finance illegal activities.

According to a she studies At the beginning of this year, about a quarter of Bitcoin users and half of Bitcoin transactions are associated with illegal activities. Approximately $ 72 billion of illegal activities per year involve Bitcoin, which is close to the scale of US and European markets for illegal drugs.

Furthermore, a 2018 she studies conducted by the blockchain analysis startup, Elliptic and the Center on Sanctions and Illicit Finance, found a fivefold increase in the number of large-scale illegal operations that worked on the Bitcoin blockchain between 2013 and 2016. Analyzing the history of over 500,000 bitcoins, organizations have identified 102 criminal entities, which included dark web marketplaces, ponzi schemes and ransomware / malware attacks.

Trace criminal activity through the Bitcoin blockchain

It is interesting to note that many of the digital currencies examined in the study conducted by Elliptic and the Center for sanctions and illicit finances could be traced back to those responsible. For example, it emerged that 95% of all recycled coins detected came from nine web markets, including Silk Road, Silk Road 2.0, Agora and AlphaBay.

By closely examining blockchain activities, companies focused on combating cryptocurrency crimes can identify accounts that appear to belong to the same Bitcoin portfolio and are controlled by the same entity. This process is known as "clustering".

According to Kyrylo Chykhradze, head of Bitfury crystal, a software solution designed to track Bitcoin and Bitcoin Cash Blockchain activities, Crystal collects information on all transactions recorded on the blockchain to determine which addresses belong to the same entity to identify criminal activities.

Using a unique clustering algorithm, Crystal can determine which bitcoin address belongs to certain users. The solution also uses web crawlers and manual registration on various services to name the entities and assign them a risk score based on the type of service. Crystal, who has assisted financial institutions and order forces in identifying and tracking down criminal activities such as extortion and money laundering, assigns a risk score based on each bitcoin address that is never appeared in the blockchain. "

Because financial institutions and law enforcement agencies begin to use tools like Crystal, organizations can easily begin to detect illegal activities that happen through blockchain networks.

For example, the Bitfury Group conducted a report to trace the Bitcoin movement from the Japanese-based Zaif exchange after it had been violated in the month of September. Zaif lost $ 60 million in crypts, including nearly 6,000 bitcoins.

According to the analysis completed by Bitfury's Crystal Blockchain Analytics engineering team, 30% of the stolen Bitcoins are still in hacker addresses. Another 24% was sent to Binance for exchange / withdrawal. The remaining 46% was subdivided into small quantities and sent to various addresses.

Addresses with unknown owners are still under surveillance using the Crystal Blockchain software solution. And since Zaif shared the exact time of unauthorized access, Crystal's engineering team was able to determine which transactions belonged to the hackers.

Keep the Crypto community safe offline

In addition to tracing threatening criminal activities through blockchain networks, cryptocracy has also had an impact on the offline world. Recently, there have been numerous crimes in which the victims were forced to hand over the details of the cryptocurrency account, or to face violent consequences.

Because of real attacks, BlockShow, a major blockchain industry event, has announced a partnership with Bitfury to bring Crystal to its next Singapore event, which is expected to attract over 3,000 attendees.

Recently, a group or individual who used phony identities said they planned to sabotage BlockShow Asia with explosives through its community Telegram channels. In addition to reporting threats to the police and increasing security during the event, the BlockShow organizers wanted to give participants the opportunity to recognize the risks that accompany the bitcoin's promise and to get more information about their own vulnerability.

All our events are centered on a simple premise: we believe in the power of blockchain and cryptocurrencies. But we also believe in transparency and we will not ignore the dangers of this promising new technology, "said Addy Creaze, CEO of BlockShow." To a certain extent, the more technology is promising, the more people want to sabotage it. We look forward to helping participants understand and address some of the risks of crypto, as we also explore its undeniable potential. "

All BlockShow Asia participants will have access to Crystal and will be able to scan the QR code of their crypto-wallets to get the user's risk scores. According to Chykhradze, a risk score represents the extent to which a bitcoin address is linked to a questionable activity. This allows all Blockshow participants to check whether their funds may or may not raise suspicions from the authorities.

Bitfury is proud to participate in BlockShow Asia to demonstrate our unique "risk score", which is based on a database we compiled from hundreds of organizations and thousands of individuals who own bitcoin addresses. Participation in Blockshow helps us support the organizers and Bitfury's intentions to draw attention to important cryptography issues – such as trust, transparency and cyber security. "

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