A new study has found that crimes enabled by artificial intelligence in the cryptocurrency ecosystem are still in their nascent stages. Stakeholders can prevent these activities from becoming widespread through timely and measured responses. Data from the same study indicate a surge in tokens featuring AI-related keywords such as GPT, Openai and Bard. Approximately 4,500 […]
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No Evidence Hamas Received Significant Crypto Donations: Elliptic Says Data Has Been Misrepresented
Blockchain analytics firm Elliptic says there is no evidence that Hamas has received significant volumes of cryptocurrency donations, emphasizing that crypto data it provides on the matter has been misrepresented. Noting that crypto accounts linked to Hamas have been seized or frozen, Elliptic says: “This illustrates the weakness of crypto as a terrorism fundraising tool. The transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities.”
Hamas’ Crypto Amounts Raised ‘Tiny’ Compared to Other Funding Sources
Blockchain analysis provider Elliptic published a blog post on Wednesday to set the record straight regarding crypto crowdfunding by Hamas, the military organization currently at war with Israel. This clarification followed numerous media reports claiming that Hamas had raised significant funds in cryptocurrency, including an article in The Wall Street Journal titled “Hamas Militants Behind Israel Attack Raised Millions in Crypto.”
Elliptic emphasized:
There is no evidence to support the assertion that Hamas has received significant volumes of crypto donations.
The Wall Street Journal article has been referenced by various individuals, including Senator Elizabeth Warren and more than 100 U.S. lawmakers who jointly sent a letter to the White House and the U.S. Department of the Treasury, urging them to take action against crypto citing its use by Hamas. “In the months leading up to their brutal and horrific October 7th attack on Israel, Hamas and Palestinian Islamic Jihad (PIJ) raised millions of dollars in crypto — evading U.S. sanctions and funding their operations. Indeed, between August 2021 and this past June, the two groups raised over 0 million in crypto,” wrote Warren and her fellow lawmakers.
However, Elliptic stressed: “There is no evidence to suggest that crypto fundraising has raised anything close to this amount, and data provided by Elliptic and others has been misinterpreted.”
In order to clear up confusion, Elliptic said that it has “engaged with the Wall Street Journal to correct misinterpretations of the level of crypto fundraising by Hamas” and has been “in discussions with the office of Senator Warren to ensure that the relevant parties have a proper appreciation of the complexities and nuances of analyzing these wallets.” Noting that “A full understanding of blockchain analysis and the context of any analysis is needed when using these insights to draw conclusions,” Elliptic said:
We have spoken to representatives of the lead signatory, Senator Warren, as well as the authors of the Wall Street Journal article, to clarify this.
While acknowledging that “Over the past few years, Hamas has begun to experiment with cryptocurrency as a means to crowdfund from the public through social media,” Elliptic clarified: “The unique traceability of these assets has meant that the amounts raised remain tiny compared to other funding sources.”
Furthermore, the blockchain analytics company highlighted that various cryptocurrency wallets associated with Hamas have been seized, and centralized crypto exchanges are collaborating with law enforcement agencies to freeze accounts connected to illicit activities. “This illustrates the weakness of crypto as a terrorism fundraising tool. The transparency of the blockchain allows illicit funds to be traced, and in some cases linked to real-world identities,” the firm described.
Elliptic further detailed that since the Hamas attacks of Oct. 7, the most prominent public crypto fundraising campaign has been operated by a pro-Hamas news organization, Gaza Now. However, the firm said only ,000 in cryptocurrency has been donated since Oct. 7, and much of this has been frozen. On Oct. 9, Gaza Now sent around ,000 of the donated cryptocurrency to an exchange, where it was promptly frozen, the firm added, noting that around ,000 in USDT donations were also frozen by Tether.
In contrast, much more funds have been raised to help people in Israel, the blockchain analytics firm additionally pointed out, stating:
Crypto fundraising for humanitarian causes in Israel is flourishing. For example, Crypto Aid Israel had received over 5,000 in crypto donations by October 19th to support those impacted by the attacks.
What do you think about the clarification by Elliptic about how much crypto Hamas had raised? Let us know in the comments section below.
Elliptic: FTX Hacker Laundered Stolen Crypto Funds Through Russian Crime Networks
Close to a year has passed, and the hacker responsible for the staggering 7 million heist from the now-defunct crypto exchange FTX still remains elusive. Yet, Elliptic, a leading blockchain analytics firm, has meticulously mapped the intricate journey of the stolen funds, shedding light on the culprit’s attempts to launder and mask their activities. Allegedly, a portion of the pilfered assets have been mingled with bitcoins linked to notorious Russian cyber gangs.
Elliptic Maps Stolen FTX Crypto Trail, Links to Russian Cyber Gangs
In a tumultuous November 2022, FTX declared bankruptcy. On that same day, its CEO, Sam Bankman-Fried (SBF), faced accusations of misappropriating customer funds. Seizing the moment, a crafty hacker pilfered a staggering sum from FTX’s exposed wallets. As Elliptic’s recent findings indicate, the cybercriminal swiftly initiated a laundering spree across decentralized exchanges and cross-chain portals to blur their tracks and ward off asset confiscation.
Using platforms like Renbridge, the hacker deftly exchanged the stolen tokens for mainstream crypto assets such as ether, then channeled these funds into bitcoin. Elliptic said over million flowed through Renbridge, a platform ironically under the umbrella of FTX’s sibling firm, Alameda Research. To add another layer of obscurity, the hacker dispatched the bitcoin through mixing services like Chipmixer, Elliptic’s study reveals.
For nearly nine months, a sizable chunk of ether, amounting to more than 0 million, lay untouched in the perpetrator’s digital vault. But as September 2023 drew to a close, the hacker reignited laundering operations, employing fresh cross-chain bridges and bitcoin mixers, as earlier ones faced restrictions or confiscations.
Through tracking efforts, Elliptic’s sleuths pinpointed instances where the laundered funds surfaced on exchanges, having been blended with other transactions. Elliptic claims these transactions intersected with accounts tied to cybercriminals operating from Russia. While the hacker’s true identity remains shrouded in mystery, such clues hint at the possibility of the offender hailing from Eastern Europe, diverging from earlier suspicions of North Korea’s notorious Lazarus Group.
What do you think about Elliptic’s research report that claims the FTX hacker funneled funds through Russian cyber gangs? Share your thoughts and opinions about this subject in the comments section below.
Cybercriminals Use Dexs and Crypto Cross-Chain Services to Launder $7 Billion — Elliptic
According to the findings of a research study by Elliptic, cybercriminals are believed to have used crypto cross-chain bridges and coin swap services to launder billion worth of “illicit or high-risk funds.” The Lazarus Group, a cybercriminal organization said to be backed by North Korea, is “responsible for 0 million of cross-chain crime.”
Bad Actors Exploiting Dexs and Cross-Chain Bridges
In the period between July 2022 and July 2023, cross-chain and cross-asset services were used to “launder billion worth of illicit or high-risk funds,” the latest research by the blockchain analytics firm Elliptic has shown. The value of crypto assets laundered via such channels exceeds the firm’s prediction of .5 billion by the end of 2023.
In a press statement issued on Oct. 5, Elliptic said the latest value of crypto assets laundered via decentralized exchanges, cross-chain bridges and coin swap services dwarfs the .1 billion recorded a year earlier. Commenting on the findings of its latest study, Tom Robinson, the co-founder and chief scientist at Elliptic, said:
“Now, with the innovative insights from our Holistic blockchain analytics capabilities released last year, we’ve seen that cross-chain crime continues to grow, as bad actors continue to exploit services such as decentralized exchanges (dexs), cross-chain bridges, and coin swap services.”
Sanctioned Entities Hold 80 Assets Across 26 Blockchains
According to the statement, the Lazarus Group, a cybercriminal organization said to be backed by North Korea, is responsible for 0 million of cross-chain crime. It added that sanctioned entities now “hold over 80 different assets across more than 26 blockchains.” As has been reported by Bitcoin.com News in the past few months, the Lazarus Group continues to be pointed to in high profile hacking incidents. In one such incident, the hackers are thought to have made off with digital assets worth 0 million.
The blockchain analytics firm said it has noticed that cybercriminals including the Lazarus Group now attempt to obfuscate the movement of the funds before cashing out. The criminals achieve this by using what Elliptic refers to as more complex cross-chain methods. These methods include derivatives trading and limit orders.
What are your thoughts on this story? Let us know what you think in the comments section below.
Elliptic to Utilize Chatgpt in Intelligence Gathering
Blockchain analytics company Elliptic said it’s going to use Openai’s Chatgpt to support its intelligence gathering and research. The AI-based language model will allow its experts to speed up and expand the analysis of new risks related to crypto assets.
Blockchain Forensics Firm Elliptic to Employ Chatgpt
London-headquartered Elliptic, a leader in blockchain analysis and crypto-asset risk management, announced the integration of the Chatgpt chatbot into its team’s off-chain intelligence and research gathering efforts.
The company pointed out in a press release that the solutions it has developed leverage a proprietary dataset consisting of more than a decade’s worth of data, “encompassing over 97% of crypto transactions by trading volume, and the largest collection of crypto exchange risk profiles.”
Adding the technology based on artificial intelligence (AI) to Elliptic’s tool set will allow its specialists to concentrate on accuracy and scalability while the large language model (LLM) will be used to organize the data, the firm noted, stating:
With Chatgpt, Elliptic’s researchers and investigators will be able to synthesize and organize intelligence on new risk factors in higher volumes and at a quicker speed than ever before.
“We pride ourselves in being on the forefront of blockchain innovation, and incorporating cutting-edge technologies to enhance how we work,” said Elliptic CEO Simone Maini. “Integrating Chatgpt allows us to scale up our intelligence,” Chief Technology Officer Jackson Hull added.
Elliptic specializes in blockchain analysis and risk assessment on crypto transactions, providing intelligence services to financial firms, crypto businesses, governments and law enforcement agencies. It is backed by investors such as J.P. Morgan and Wells Fargo Strategic Capital.
Developed by the Microsoft-funded AI research laboratory Openai, Chatgpt has been making its way into the crypto space. In March, leading U.S. digital asset exchange Coinbase announced it’s testing the product as a token verification tool.
Do you think applications for Chatgpt in the crypto industry will continue to grow in number? Share your expectations in the comments section below.
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XRP Is Used in Crime, But Far Less Often Than Bitcoin, Elliptic Says
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Blockchain Analytic Firm Elliptic Raises $23 Million in Funding
The post Blockchain Analytic Firm Elliptic Raises Million in Funding appeared first on DCEBrief.