Monero Transactions Traced by Finnish Authorities in High-Profile Crypto Hacking Case
Summary:
Finnish authorities are utilizing transaction data from Monero (XMR) in their ongoing criminal trial against Julius Aleksanteri Kivimäki, who stands accused of hacking a mental health firm's database and demanding crypto ransoms. New evidence reportedly tied a series of crypto transactions to Kivimäki's account. Key features of Monero, known for its privacy, are also highlighted in the article. This case has reignited discussions around the anonymity provided by certain cryptocurrencies and previous attempts to control their use.
Finnish authorities, specifically the National Bureau of Investigation, have been monitoring Monero (XMR) transactions to gather evidence for the criminal trial of Julius Aleksanteri Kivimäki. Kivimäki stands accused of infiltrating a private mental health establishment's database and demanding cryptocurrency ransoms. Based on reports from local news outlets, new evidence was introduced on January 22nd that linked a trail of crypto transactions to Kivimäki's bank account.
In October 2022, it's alleged that the defendant threatened to release records of over 33,000 patients from psychotherapy service, Vastaamo, if a ransom of 40 Bitcoin (valuing approximately 450,000 euros at the time) was not paid. Upon non-payment, the hacker reportedly began threatening specific patients.
Authorities claim that the hacker received Bitcoin payments, moved the funds to a non-compliant exchange concerning Know Your Customer (KYC) regulations, converted the assets to Monero, and then transferred them to a Monero-specific wallet.
The transferred funds were later moved to Binance, switched back to Bitcoin, and distributed among various wallets. Any details regarding the on-chain analysis being used in the investigation are being kept confidential by local authorities.
Recognized for its strong privacy measures, Monero claims to be "untraceable" on its official website. Its provisions for user privacy comprise Ring Confidential Transactions (RingCT), ring signatures, and stealth addresses. RingCT dilutes users' transactions to hide the original source of funds, while ring signatures protect sender identities by masking them within a group of potential senders.
Monero's additional privacy feature—stealth addresses—enables the creation of a unique address for each transaction, further complicating the process of linking multiple transactions to one recipient.
In March 2019, Eric Woerth, the head of France's National Assembly Finance Committee, suggested banning anonymous cryptocurrencies, Monero included, for their capability to provide complete user anonymity and thereby circumvent any identification processes.
In 2020, the Internal Revenue Service in the United States even offered a reward of up to $625,000 for anyone who could crack supposedly untraceable privacy coins. Research has indicated that it's possible to trace transactions involving privacy coins, including activities that took place before 2017.
Published At
1/27/2024 8:37:15 PM
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