Essential Tools for Crypto Journalists
- A guide for journalists on using blockchain analytics and other tools to track stolen crypto assets.
- In February, the cryptocurrency exchange platform Bybit was the victim of a significant hacking incident, resulting in the theft of digital assets valued at more than $1.5 billion.
- the breach targeted Bybit's cold wallet, an offline storage method designed to enhance security.
Tools for Investigating Cryptocurrency Theft
Table of Contents
A guide for journalists on using blockchain analytics and other tools to track stolen crypto assets.
In February, the cryptocurrency exchange platform Bybit was the victim of a significant hacking incident, resulting in the theft of digital assets valued at more than $1.5 billion. This ranks as one of the largest cryptocurrency heists on record, according to reports.
the breach targeted Bybit’s cold wallet, an offline storage method designed to enhance security. The stolen assets, primarily in Ethereum, were quickly moved through numerous wallets and converted to cash via various platforms, a process known as mixing.
This movement of funds mirrors money laundering techniques.
Cryptocurrency thefts have been on the rise, with annual losses reaching hundreds of millions of dollars. It is indeed crucial for journalists to investigate these breaches and understand how they occur.
Here are five tools that can assist journalists in investigating cryptocurrencies:
1. Chainalysis
Chainalysis is a tool used by journalists,law enforcement,and financial institutions to track and identify stolen cryptocurrency assets.
the platform provides data, software, and investigative services to government agencies, banks, financial institutions, insurance companies, journalists, and cybersecurity firms in over 70 countries.
Chainalysis tools have been used for research and regulatory compliance globally and have played a role in resolving high-profile cryptocurrency cases, improving customer access to digital assets.
2. GeoSpy AI
GeoSpy AI is an AI tool that predicts the location where a photo was taken by analyzing elements such as vegetation, architectural styles, and spacing between buildings. This image analysis can provide clues in cryptocurrency investigations.
Many scammers use social media platforms like Instagram to display wealth. Analyzing these images with GeoSpy AI can reveal their location. Cryptocurrency researcher zachxbt reportedly used similar techniques to locate suspects in a $243 million hacking case.
Due to its effectiveness, access to GeoSpy AI has been restricted due to privacy concerns. However, journalists can request access for investigative purposes.
3. OnChain Industries
OnChain Industries uses open-source intelligence and AI to identify email addresses, usernames, and cryptocurrency wallet addresses, revealing linked web accounts.
This is valuable for journalists seeking connections between cryptocurrency identities, especially on Web3 platforms like OpenSea. The tool can be used to investigate money laundering, asset theft, and sanctions evasion through crypto assets.
With over 100 search modules across different platforms, OnChain Industries expands the scope of research. The tool offers free access to journalists and law enforcement.
4. Elliptic
Founded in 2013,Elliptic offers blockchain analytics solutions to financial institutions and law enforcement. It helps locate cybercriminals and ensure compliance with cryptocurrency regulations,particularly regarding sanctions evasion.
the tool tracks the flow of funds from payer to source, identifying wallets with identity verification (Know Your Customer
). tracking assets as they are mixed is crucial for detecting unusual patterns and recovering stolen assets.
Elliptic has incorporated AI to supervise blockchain transactions and manage risk detection, enabling faster and more complete data analysis.
5. Arkham Intelligence
Arkham Intelligence is a cryptocurrency platform known for its blockchain analysis capabilities.
It provides insights into real-world entities associated with blockchain addresses. Using AI, it analyzes, categorizes, and presents data related to tokens and entities, helping journalists identify patterns, track transactions, and gain a complete view of stolen funds.
Arkham Intelligence, along with Elliptic, reportedly identified the Lazarus Group of North Korea as the hackers responsible for the $1.5 billion Bybit breach.
The Arkham Visualizer function offers a global view of all transactions associated with a wallet, enabling quick report generation. Journalists can analyze data to identify anomalies, such as assets transferred to entities outside the company, warranting further inquiry.
tools for Investigating Cryptocurrency Theft
A guide for journalists on using blockchain analytics and other tools to track stolen crypto assets.
in February, the cryptocurrency exchange platform bybit was the victim of a meaningful hacking incident, resulting in the theft of digital assets valued at more than $1.5 billion. This ranks as one of the largest cryptocurrency heists on record,according to reports.
The breach targeted bybit’s cold wallet,an offline storage method designed to enhance security. The stolen assets, primarily in Ethereum, were quickly moved through numerous wallets and converted to cash via various platforms, a process known as “mixing.” This movement of funds mirrors money laundering techniques.
Cryptocurrency thefts have been on the rise, with annual losses reaching hundreds of millions of dollars. It is indeed crucial for journalists to investigate these breaches and understand how they occur.
Frequently Asked Questions about Cryptocurrency Theft Investigation
What Tools Can Journalists Use to Investigate Cryptocurrency Theft?
Journalists can employ several tools to investigate cryptocurrency theft, leveraging blockchain analytics, open-source intelligence (OSINT), and AI. These tools help track stolen funds, identify suspects, and uncover the methods used in illicit activities.
Here are five tools that can assist journalists in investigating cryptocurrencies:
- Chainalysis: Tracks and identifies stolen cryptocurrency assets for journalists, law enforcement, and financial institutions.
- GeoSpy AI: analyzes images to predict the location where a photo was taken, providing clues in cryptocurrency investigations.
- OnChain Industries: Identifies linked web accounts by using OSINT and AI to reveal email addresses, usernames, and cryptocurrency wallet addresses.
- Elliptic: Offers blockchain analytics solutions to locate cybercriminals and ensure compliance with cryptocurrency regulations.
- Arkham Intelligence: Provides insights into real-world entities associated with blockchain addresses, helping identify patterns and track transactions.
How Can Blockchain Analysis Help in Cryptocurrency Investigations?
Blockchain analysis is crucial for tracing the flow of stolen funds. By examining transaction histories on the blockchain,investigators can follow the movement of cryptocurrency from the point of theft through various wallets and platforms.
Tools like Chainalysis, Elliptic, and arkham Intelligence provide the capabilities to:
- Identify patterns of movement and potential mixing activities.
- Link transactions to known entities or addresses.
- Visualize the flow of funds to understand the scope of the theft.
What is “Mixing” and Why is it Relevant to Cryptocurrency Theft?
Mixing, also known as “tumbling,” is a technique used to obscure the origin of cryptocurrency by shuffling funds through multiple wallets and platforms. This process complicates the tracing of stolen assets, making it harder to identify the ultimate destination of the funds.
The Bybit breach illustrates how quickly stolen assets are mixed to obfuscate their origins. Tools like Elliptic help track assets as they are mixed and identify unusual patterns.
How do OSINT and AI Tools Assist in Cryptocurrency Investigations?
OSINT and AI tools provide additional layers of investigation to connect individuals to cryptocurrency activity, helping journalists uncover the connections between stolen crypto assets and real-world entities.
- GeoSpy AI is used to analyze visual elements within images.
- OnChain Industries leverages OSINT and AI to identify email addresses, usernames, and cryptocurrency wallet addresses.
- Arkham Intelligence utilizes AI to analyze and categorize data related to tokens and entities.
Case Study: The Bybit Breach
The Bybit breach, a $1.5 billion theft,underscores the sophistication of cryptocurrency heists.The stolen Ethereum was quickly moved through numerous wallets and converted to cash, using mixing techniques to hide the trail. Arkham Intelligence and elliptic reportedly helped identify the Lazarus Group of north Korea as the hackers responsible for the breach.
Comparing Cryptocurrency Investigation Tools
Understanding the strengths of different tools is vital. The table below summarizes key features for each tool mentioned:
| Tool | Key Features | Primary use |
|---|---|---|
| Chainalysis | Tracks and identifies stolen crypto assets; Provides data and software. | Tracking stolen funds,compliance. |
| GeoSpy AI | Analyzes images to determine locations. | Identify suspects and their location. |
| OnChain Industries | Identifies linked web accounts and cryptocurrency wallet addresses. | Investigating money laundering, asset theft. |
| Elliptic | Blockchain analytics,tracks fund flows,identifies wallets. | Locating cybercriminals, compliance, and regulation. |
| arkham Intelligence | Blockchain analysis; Provides insights into real-world entities. | Identifying patterns, tracking transactions. |
By using these tools, journalists can play a key role in revealing the inner workings of cryptocurrency thefts and holding perpetrators accountable.