Law Enforcement Agencies Trace Monero Transactions to Identify Hacker
The law enforcement agencies of Finland were able to trace Monero transactions to identify a hacker involved in the robbery and extortion case of a psychiatric clinic Vastaamo. Despite the anonymous features of cryptocurrency, the authorities successfully tracked the flow of funds. The trial of Julius Aleksantry Kivimyaki, accused of hacking the clinic’s database and extortion, began in October 2023.
The hacker initially demanded a ransom of 40 bitcoins (BTC) from the clinic. However, after the clinic refused to pay, the hacker started extorting money from the patients. The victims, approximately 22,000 individuals, were asked to pay €500 each in cryptocurrency. The hacker then exchanged the received payments for Monero.
Finnish police revealed that the cybercriminal sent the funds to a cryptocurrency exchange without undergoing the KYC (Know Your Customer) procedure. The criminal then converted the funds to Monero and transferred them back to bitcoins through multiple wallets. The authorities managed to track the transactions in the blockchain while keeping the investigation confidential.
Although Monero is known for its privacy features such as RingCT and hidden addresses, this case demonstrates that law enforcement agencies have the capability to trace cash flows even in anonymous cryptocurrencies.
Previous studies have also shown that Monero transactions were traceable until 2017. This situation raises concerns about the concept of complete confidentiality and may lead to a reevaluation of the role of anonymous cryptocurrencies. The ongoing trial of Kivimyaki highlights the potential of law enforcement agencies to uncover illegal activities in blockchain.
In October 2022, Kivimyaki was charged with attempting to extort money from the Vastaamo psychotherapy center. According to Finnish authorities, he was arrested in absentia as he was abroad at the time. Furthermore, Kivimyaki was already on Interpol’s most wanted list for his involvement in over 50,000 cybercrimes. In February 2023, he was arrested in France.