Hackers use mining pools as mixers, per Chainalysis.

Good actors in the cryptocurrency industry focus on developing new innovations, while bad actors use their creativity to find clever ways to conceal their fraudulent earnings. A recent report from Chainalysis, a blockchain analytics firm, reveals how wallets associated with ransomware attacks are turning to cryptocurrency mining pools to launder their illicit funds.

The report explains that a highly active wallet address from a mainstream exchange has received nearly $100 million in digital assets. Of this amount, $19.1 million came from ransomware addresses and $14.1 million came from mining pools. The chart in the report illustrates how the ransomware actor sent funds to the exchange through a mining pool, allowing them to bypass compliance alarms. In essence, the mining pool functions like a crypto mixer and obfuscates the origin of the funds, making it appear as if they were earned through mining instead of ransomware.

In recent years, there has been an increase in the value of funds sent from ransomware wallets to mining pools. Chainalysis suggests that mining pools can help solve this problem by implementing more robust wallet screening processes in addition to Know Your Customer measures, and by rejecting funds from illegitimate addresses.

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