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Volume 8, Issue 2


Cryptocurrency-Related Cybercrime Types and Threats

Authors: Irakli Nadareishvili1,

Irakli Nadareishvili

Doctor of Law, Affiliated Associated professor of Caucasus International University, Head of The Department to Investigate Offenses Committed in the Course of Legal Proceedings, The Office of The General Prosecutor of Georgia

Email: inadareishvili@pog.gov.ge


Shota Kakulia2

Shota Kakulia

Master of Law, Prosecutor of The Department to Investigate, Offenses Committed in the Course of Legal Proceedings

Email: shota.kakulia@gmail.com



Affiliation: Doctor of Law, Affiliated Associated professor of Caucasus International University, Head of The Department to Investigate Offenses Committed in the Course of Legal Proceedings, The Office of The General Prosecutor of Georgia1, Master of Law, Prosecutor of The Department to Investigate, Offenses Committed in the Course of Legal Proceedings 2

Abstract: This article emphasizes the types and threats of cybercrime related to cryptocurrencies. The necessity of implementing legislative regulations and invention of administrative control mechanisms in connection with the growth of the digital economy is also discussed. The presented article also elucidates features of cyber-cartels and their new instruments, such as “Auction Robots”, for committing illicit activities as the new type of the organized crime in a digital world. This work also focuses on describing certain categories of cybercrime, such as cryptojacking, which is a scheme to use people’s devices (computers, smartphones, tablets and etc.), without their consent or knowledge, to secretly mine cryptocurrency on the victim’s dime. To analyze the growth in demand, this work highlights the index of the whole capitalization and the exchange rates of the cryptocurrencies. Article also underlines the threat of the element of anonymity related to cryptocurrencies as the main instrument for criminals to either disguise terrorism financing or evade paying taxes. Some valuable examples of amendments developed and introduced by the US and Great Britain legislations to regulate crypto market and control tax evasion are also cited.

Keywords: Cryptocurrency, Cryptojacking, Cyber-Cartel, Digital Economics, Cybercrime,


Language: GE

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Bibliography:

Legal Acts:

  1. Legislative Herald of Georgia, (01.07.2019), Decision of the Ministry of Finance of Georgia of June 28, 2019 №201, Legislative Herald of Georgia. https://matsne.gov. ge/ka/document/view/4601215?publication=0

Researches:

  1. Bernardi M., Charoenwong B., (2022). “A Decade of Cryptocurrency Hacks: 2011-2021”, Business School, National University of Singapore.(In Georgian)

Used Literature:

  1. Weiss. P., (2019). “Cryptocurrency”. Rifkind, Wharton & Garrison LLP (Multinational Law Firm). (In English)
  2. Teslenko A.V., Konieva F. I., (2019). “Robotization of sales – new challenge to combat the cyber-cartels”. Iustitsinform. Collection of scientific works. (In Russian)
  3. Ivashenko K.A., (2021). “Digital Cartels as the new type of cybercrime”. Collection – Cybercrime: Risks and threats. (In Russian)
  4. Dr. Houben R., Snyers A., (2018). “Legal contexts and implications for financial crime, money laundering and tax evasion”, European Parliament (Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies)
  5. Lapuh Bele J., (2021). “Cryptocurrencies as facilitators of cybercrime”. SHS Web of Conferences Volume 111.

Internet Resources:

  1. Marshal, J., (2022, February 2), ,,US$8.6 billion worth of crypto-currency laundered by cybercriminals in 2021“, International Security Journal. https://internationalsecurityjournal.com/cryptocurrency-laundered-in-2021/
  2. Coinmarketcap, (2022, May 6). Web-site showing the capitalization and exchange rates of cryptocurencies https://coinmarketcap.com/(In English)
  3. World Crypto Index. (2018). “How Cryptography is used in cryptocurrency”. World Crypto Index https://www.worldcryptoindex.com/how-cryptography-is-used-cryptocurrency/
  4. TADVISER. 2021. Cartels in Russian IT market. TADVISER https://www.tadviser.ru/index.php/%D0%A1%D1%82%D0%B0%D1%82%D1%8C%D1%8F:%D0%9A%D0%B0%D1%80%D1%82%D0%B5%D0%BB%D0%B8_%D0%BD%D0%B0_%D0%98%D0%A2-%D1%80%D1%8B%D0%BD%D0%BA%D0%B5_%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8(In English)
  5. Kaspersky lab. 2022. “What is Wannacry Ransomware”. Mimicast https://www.mimecast.com/blog/all-you-need-to-know-about-wannacryransomware (In English)
  6. Arista Networks. 2021. “The Role of Cryptocurrency in Ransomware Attacks”. ARTISTA https://www.untangle.com/inside-untangle/the-role-of-cryptocurrency-in-ransomware-attacks/(In English)
  7. Malwarebytes Company. (2022). “Cryptojacking – What is it?”. Malwarebytes https://www.malwarebytes.com/cryptojacking>/ (In English)
  8. Financial Action Task Force (FATF) Report.(2015, ოქტომბერი). “Emerging Terrorists Financial Risks”. FATF https://www.fatf-gafi.org/media/fatf/documents/reports/Emerging-Terrorist-Financing-Risks.pdf(In English)
  9. Comply Advantage. (2022). “Cryptocurrency Regulations around the World”. Comply Advantage. https://complyadvantage.com/insights/ cryptocurrency-regulations-around-world/ (In English)

Notes:

  1. Marshal, J., (2 February, 2022). US$8.6 billion worth of crypto-currency laundered by cybercriminals in 2021“, International Security Journal https://internationalsecurityjournal.com/cryptocurrency-laundered-in-2021
  2. Coinmarketcap, (6 May, 2022). Web-site showing the capitalization and exchangerates of cryptocurencies https://coinmarketcap.com [Last seen: 10 June, 2022]
  3. Legislative Herald of Georgia, (1 July, 2019). Decision of the Ministry of Finance ofGeorgia of June 28, 2019 №201, Legislative Herald of Georgia https://matsne.gov.ge/ka/document/view/4601215?publication=0
  4. Weiss, P., (2019). “Cryptocurrency”. Rifkind, Wharton & Garrison LLP (Multinational Law Firm). P.1
  5. World Crypto Index. (2018). “How Cryptography is used in cryptocurrency”. World Crypto Index, https://www.worldcryptoindex.com/how-cryptography-is-used-cryptocurrency [Last seen: 10 June, 2022]
  6. Тесленко А. В., Кониева Ф. И., (2019). ,,Роботизация торгов – новый вызов в борьбе с картелями”. Из. Юстицинформ. сборник научных трудов., С. 112-122.
  7. Иващенко К. А., (2021). „Цифровые картели как новая разновидность киберпреступлений“. Сборник – Киберпреступность: риски и угрозы., С. 84
  8. TADVISER. 2021. Cartels in Russian IT market. TADVISER https://www.tadviser.ru/index.php/%D0%A1%D1%82%D0%B0%D1%82%D1%8C%D1%8F:%D0%9A%D0%B0%D1%80%D1%82%D0%B5%D0%BB%D0%B8_%D0%BD%D0%B0_%D0%98%D0%A2-%D1%80%D1%8B%D0%BD%D0%BA%D0%B5_%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8 > [Last seen: 10 June, 2022]
  9. Lapuh Bele J., (2021). “Cryptocurrencies as facilitators of cybercrime”. SHS Web of Conferences Volume 111. P. 1-6.
  10. Kaspersky lab. 2022. “What is Wannacry Ransomware”. Mimicast https://www.mimecast.com/blog/all-you-need-to-know-about-wannacry-ransomware/
  11. Arista Networks. 2021. “The Role of Cryptocurrency in Ransomware Attacks”.ARTISTA. https://www.untangle.com/inside-untangle/the-role-of-cryptocurrency-in-ransomware-attacks/
  12. Bernardi, M., Charoenwong, B., (2022). “A Decade of Cryptocurrency Hacks: 2011-2021”, Business School, National University of Singapore, P. 1-6.
  13. Malwarebytes Company. 2022. “Cryptojacking – What is it?”. Malwarebytes. https://www.malwarebytes.com/cryptojacking [Last seen: 6 June, 2022]
  14. Dr. Houben R., Snyers A., (2018). “Legal contexts and implications for financial crime, money laundering and tax evasion”, European Parliament (Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies), P. 9
  15. Financial Action Task Force (FATF) Report. (2015, October). “Emerging Terrorists Financial Risks”. FATF. https://www.fatf-gafi.org/media/fatf/documents/reports/Emerging-Terrorist-Financing-Risks.pdf[Last seen: 6 June, 2022]
  16. Comply Advantage. (2022). “Cryptocurrency Regulations around the World”. Comply Advantage https://complyadvantage.com/insights/cryptocurrency-regulations-around-world/> [Last seen: 6 June, 2022]
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