Chainalysis tool could make Bitcoin extortion a thing of the past

The reign of terror brought about by Bitcoin extortion may soon be coming to an end. According to blockchain analysis firm Chainalysis, law enforcement agencies are ready to combat cybercrime of this nature.

Ransomware attacks have increased dramatically in recent days. Initially targeting individual users and demanding small amounts of ransom, these cybercriminals have now set their sights on larger targets, including large companies, banks, financial institutions, hospitals, and even police departments.

The combination of encryption and the pseudonymous nature of Bitcoin transactions has created a challenge in combating ransomware attacks, but advances in blockchain analysis techniques have made it possible for law enforcement agencies to track these transactions.

According to Chainalysis, the demand for its solutions from law enforcement agencies has increased. Michael Gronager, the company's CEO, pointed out that Chainalysis's Bitcoin tracking technology has been adopted by law enforcement agencies in the United States, the European Union, and Asia, and has achieved great success. It is reported that Chainalysis' technology has successfully helped law enforcement agencies hunt down members of DD4BC.

In a recent report, Michael said:

"The ransomware industry is a $100 billion-a-year industry... I would like to see some arrests made as soon as possible after law enforcement investigates ransomware operations."

Although the main premise behind Chainalysis’ technology is to provide anti-money laundering solutions for the banking and financial industries, it has also proven that the tool is useful to law enforcement agencies. Michael believes that the recent hacker who attacked the Bitfinex exchange made a big mistake, and once the hacker decides to spend the bitcoins, Michael hopes that his company’s tools will be able to track him.

As blockchain technology becomes more and more important within mainstream banking and finance, Chainalysis expects to gain more clients in the near future. Currently, Chainalysis' software also allows organizations to discover emerging threats from the deep web and investigate ransomware without relying on others.

Michael also said that last year, the Chainalysis tool detected more than 5,000 suspicious transactions in the United States.

Once law enforcement begins to crack down on ransomware attacks and other cybercrime, the number of Bitcoin crimes could decline, ultimately helping the digital currency shed its negative image.