Report: 74% of funds stolen from ransomware attacks went to wallet addresses linked to Russia in 2021

According to a new report released Monday by blockchain analytics firm Chainalysis, some 74 percent (over $400 million) of ransomware revenue last year went to high-risk wallet addresses that may be located in Russia. The report analyzed ransomware hacking incidents throughout 2021 and identified their relationship to Russia through three key characteristics:

1. The traces left behind a particular intrusion by the Russian cybercrime group Evil Corp; the group is said to have ties to the Russian government.

2. Ransomware targeting only victims in non-former Soviet countries.

3. A ransomware virus that shares files and announcements in Russian.

Web traffic data seems to confirm that the vast majority of extorted funds were laundered through Russia. Another 13% of funds sent to the service from ransomware addresses went to users who were likely in Russia — more than any other region. This type of ransomware usually infects users' computers through program vulnerabilities or downloading unknown files. They then encrypt the victim's files and require Bitcoin or Monero (XMR) to be sent to a wallet address in order to open the files.

One notable case occurred last year when the Russian hacking entity Darkside infected Colonial Pipeline's computer systems by exploiting a leaked password. As a result, the pipeline operator was forced to pay more than $4 million in crypto ransom—of which $2.3 million was recovered—to regain access to its encrypted files, but the period also sparked a short-lived fuel crisis.

Russian ransomware encryption hack | Source: Reuters

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