Chainalysis launches a 24/7 hotline for victims of cryptocurrency crimes
Blockchain analytics firm Chainalysis has launched a new hotline that will provide support for platforms or companies that have been affected by a crypto-related cyber attack or ransomware demand.
Chainalysis announced that its ‘Crypto Incident Response’ hotline will function 24/7 for victims targeted in a ‘hack, ransomware attack, code exploit or flash loan attack’. These victims will be hooked up with a dedicated team of investigators from Chainalysis who will trace and label stolen funds. If the funds have already been transferred, the team will help liaise with law enforcement and asset recovery counsel.
The firm wrote in a blog post to explain the launch, ‘After an incident such as a hack, ransomware attack, code exploit, or flash loan attack occurs and cryptocurrency funds are either demanded or stolen, the victim can contact the 24/7 Chainalysis Crypto Incident Response hotline.’
The blogpost went on to explain that attacks are on the rise and compromising the general public’s trust in cryptocurrency. Therefore, the firm is investing in the service to bring bad actors to justice and ‘demonstrate that crypto is not the asset class of anonymity and crime.’
According to a report published by Chainalysis back in January, cybercrimes hit record highs in 2021. Throughout the year, hackers were responsible for the loss of more than US$ 3 billion in illicit crypto transactions through theft and ransom demands from 251 attacks, with transactions to and from illicit addresses representing 0.15% of total transaction volume in the space.
Decentralized finance (DeFi) also saw scams activity grow in 2021, most of which was related to DeFi protocols on smart contract networks like Ethereum and Polygon. 72% of the US$ 3 billion was stolen from Defi platforms in December.
While scamming value in general reached around US$ 7.8 billion, with US$ 2.8 billion generated from ‘rug pulls’ - scams in which developers abandon their project and withdraw liquidity from the platform unceremoniously.
To address cybercrime and high-profile ransomware attacks, Chainalysis has previously teamed up with U.S. government authorities. In 2021, the firm said it investigated addresses linked with Russia-based business Suex that allegedly allowed hackers to access cryptocurrency transferred as payment for ransomware attacks.