General

Introduction

If you are reading this blog, you are likely doing so on the surface web (also known as the visible web), the part of the internet that is publicly available and indexable by search engines. The counterpoint to the surface web is the dark web, which is only accessible via specialized tools like the Tor Browser.

The U.S. Department of State in collaboration with the U.S. Department of Justice, the Federal Bureau of Investigation, the United Kingdom’s National Crime Agency, the Australian Federal Police, and other international partners, have taken a significant step against the infamous LockBit ransomware group. On May 7th, 2024 the United States designated Dmitry Yuryevich Khoroshev as the leader of LockBit and offered a reward of up to $10 million for information leading to his arrest or conviction.

Two of the most talked about issues in technology today are blockchain and generative artificial intelligence (AI). To most consumers, these technologies generally occupy opposite sides of the spectrum. Blockchain serves as a public, digital ledger, most often for cryptocurrency transactions, while generative AI aids in the production of text, image, audio, and as we saw in the recent release of OpenAI’s Sora, video.

Binance, the largest cryptocurrency exchange in the world, is now facing an existential crisis. Federal prosecutors had issued charges to Binance and founder and CEO Changpeng Zhao for their failure to report 100,000 suspicious transactions involving ransomware attacks, hacks, and even terrorist financing.

How Does Blockchain Forensics Work

Blockchain forensics utilizes specialized techniques and processes to analyze blockchain data and transactions to support criminal investigations and compliance efforts. This emerging field provides invaluable capabilities for monitoring and tracing cryptocurrency activities.

On July 31st, OFAC (The Office of Foreign Asset Control) took decisive action against individuals and entities linked to terrorist organizations Al-Qaeda, ISIS, and ISIS-Khorasan (ISIS-K) in the Maldives. Among those sanctioned is Ali Shafiu, a Maldivian national actively involved in the activities of ISIS-K. 

In the ever-evolving landscape of digital transactions and data sharing, blockchain technology has emerged as a game-changer. Its decentralized and transparent nature has revolutionized various industries, offering a secure platform for recording financial transactions, digital assets, and other valuable data. However, as with any technological advancement, blockchain brings its own set of challenges, particularly in the realm of forensic investigations.

Introduction

With the crypto ecosystem suffering from a loss of $3.9 billion in 2022 due to smart contract vulnerabilities, ransomware, price oracle manipulation, and many more criminal activities, and the figures of 2023 surpassing $656 million in the first half of the year itself, serious efforts are being made to ensure the yearly figures don’t exceed the previous one. Though it still remains too early to make a comment on what’s about to happen in the world of digital assets, law enforcement agencies remain focused on implementing methodologies to prevent crypto hacks.