Crypto Mining Pools Exploited for Money Laundering, Warns Chainalysis

Cryptocurrency criminals are turning to mining pools to launder their ill-gotten funds, says blockchain forensic firm Chainalysis. The method attracts both nation states and ordinary criminals, according to the Decrypt.  

In a recent report, Chainalysis explains how sanctioned countries like Iran use crypto mining to amass capital outside traditional financial systems. Cybersecurity firm Mandiant provides further evidence, exposing how North Korea’s Lazarus Group uses stolen cryptocurrencies for cloud mining services. The process helps these cyber criminals mine ‘clean’ coins and pass them through different services to obscure their origins.

A key focus of the Chainalysis report is a mainstream exchange. This unidentified platform is believed to have received large sums from mining pools and wallets linked to ransomware activities. In one instance, an address received $94.2 million, with $19.1 million tied to ransomware and $14.1 million traced back to mining pools.

Chainalysis suggests that ransomware actors might be using mining pools to avoid detection. They could funnel funds through these pools to their preferred exchange, escaping compliance alarms.

Data from Chainalysis points to an alarming trend – a steady rise in value sent from ransomware wallets to mining pools since 2018. The firm also highlights that at least $1 million in cryptocurrency has been moved from mining pools and ransomware addresses to 372 exchange deposit addresses.

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