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Russian Ransomware Generates Over $500 Million in Crypto Revenue, Says TRM Labs
Analysts at TRM Labs say Russian-speaking ransomware groups accounted for nearly 70% of all ransomware-related cryptocurrency revenues in 2023.
Russia has apparently become the center for ransomware– Related Threat Actors in 2023 Russian-speaking ransomware groups accounted for nearly 70% of all ransomware-related cryptocurrency revenue, according to analysts at TRM Labs. The alarming figure underscores Russia’s growing role in ransomware-related activity, with these groups amassing an estimated $500 million in cryptocurrency revenue.
As per company information recent reportTwo Russian ransomware operators, Lockbit and ALPHV/Black Cat, have reported combined attack revenues of “at least $320 million.” TRM Labs notes that Lockbit, which is now under sanctions, has targeted big names like Boeing and British postal operator Royal Mail in 2023, while BlackCat/ALPHV has targeted MGM Resorts and Fortune 500 medical and dental supply distributor Henry Schein.
Cryptocurrency volumes tied to sanctioned entities worldwide | Source: TRM Labs
The report also notes that nearly all of the world’s sanctioned cryptocurrency volume was concentrated on a single Russia-based exchange, Garantex. This sanctioned Moscow-based trading firm accounted for over 80% of the cryptocurrency volume associated with all sanctioned entities globally in 2023. These entities include cryptocurrency exchanges and individuals subject to U.S. and international sanctions regimes.
According to the data, part of Garantex’s cryptocurrency volume is allocated to sanctioned Chinese manufacturers for the purchase of “military equipment and essential components used by the Russian Armed Forces in Ukraine.”
“This equipment includes commercial drones, anti-UAV equipment, thermal optics, integrated circuits (ICs), GPS modules and tantalum capacitors critical to the production of Russian weapons systems.”
TRM Labs
However, TRM Labs notes that “not all of this volume” refers to sanctioned goods, as it may also include the “sale of other goods unrelated to the war effort,” referring to the broader cross-border trade between Russia and China regulated in cryptocurrency.
As crypto.news previously reported, Russia is increasingly turning to cryptocurrencies as a payment method to circumvent sanctions and maintain cross-border trade. This trend persists despite the country’s legal ban on cryptocurrencies as legal tender, creating ambiguity regarding the classification of these transactions.
Recently, the Russian parliament past two cryptocurrency-related bills in the first of three readings. If enacted, the laws would allow the use of cryptocurrencies for international trade and officially recognize and regulate cryptocurrency mining. The legislative move follows relationships that Russian metal producers have started using stablecoins for transactions with China due to severe restrictions on traditional payment methods caused by sanctions.