Cybercriminals Reportedly Shaped Blockchain Analytics Tool


According to cryptocurrency analytics firm Elliptic, cybercriminals have established a blockchain analytics apparatus on the darknet that could assist a gang launder unlawfullyacquiredbitcoin, and they are vigorously marketing it.

“On the dark web, a blockchain analytics tool that allows bitcoin addresses to be checked for links to criminal activity has been launched.””Antinalysis” allows crypto launderers to see if their funds will be identified as proceeds of crime by regulated exchanges, according to Tom Robinson, co-founder and chief scientist at Elliptic.

Cybercriminals, according to Robinson, have taken advantage of a procedure used by cryptocurrency exchanges for checking customer deposits for any kind of links to unlawful activity.

“These tools mightclassify whether the funds invented from a wallet related with ransomware or any other criminal movement by outlining a transaction back through the blockchain,” he says. “Whenever they use to send funds to a business making use of such a tool, the launderer runs the risk of being identified as a criminal and being reported to law enforcement.”

While Antinalysis’ process is similar to that of legitimate tools, Robinson claims the results are unfavourable.

“Elliptic’s own analysis of the results returned for a variety of bitcoin addresses reveals that it was ineffective at detecting links to major darknet markets and other criminal entities,” he claims.


According to Robinson, one of the developers overdue Incognito Market, a darknet marketplace specialising in the narcoticssale, created the tool. Incognito was launched in late 2020 and accepts both bitcoin and monero as payment methods.

“The launch of Antinalysis is likely a reflection of the market’s and vendors’ difficulties in cashing out their bitcoinensues,” he says.

According to Elliptic’s research, a cybercriminal can use the Antinalysis tool, which is similar to Elliptic’s tools for tracking criminal proceeds, to essentially see what the authorities would see in a blockchain transaction.

“Antinalysis aims to assist crypto launderers by providing a performance of what a blockchain analytics tool will create of their bitcoin wallet and the funds it use to hold,” Robinson explains. “The site is powered by Tor, an unidentified web browser usually used to host darknet markets and rest of the illicit services.”

The Business Model

The Antinalysis tool costs $3 to check a single bitcoin address. The user happens to receive a color-coded collapse of where the software trusts the bitcoinsinvented, as well as the risk related with the transaction, in exchange for this fee.

The Antinalysis team compares the results it generates to those from similar, commercially available tools to demonstrate the tool’s value to potential customers. According to Robinson, this comparison demonstrates that Antinalysis is ineffective at its job.

“This is perhaps unsurprising: providing accurate blockchain analytics necessitates significant investment in technology and long-term data collection,” he says.

Antinalysis, on the other hand, represents a step forward for criminals, allowing them to test their laundering methods before risking depositing at an exchange or other service provider, according to Robinson.

“It’s also significant because it’s the first time blockchain analytics has been made available to the general public,” Robinson says.

The technology and capability of blockchain analytics had previously been restricted to controlled financial service providers. Individuals or businesses concerned about receiving proceeds from criminal activity now have the option to prescreen addresses before accepting bitcoin payments, according to Robinson.

Laundering Ill-Gotten Gains

The need for a cyber-gang to launder cryptocurrency was highlighted this week when hackers returned $600 million to the cryptocurrencystand Poly Network (see Poly Network Says $600 Million in Cryptocurrency Stolen).

Poly Network urged other cryptocurrency exchanges to blacklist tokens coming from the hacker’s addresses and demanded that the money be returned.

On Wednesday, the hackers began returning the stolen cryptocurrency in one of the strangest turns in crypto theft history. This, according to Robinson, is due to their inability to launder and cash out such a large amount of cryptocurrency.


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