Are cryptocurrencies revolutionising finance, or are they simply empowering cybercriminals and state-sponsored hackers?

Welcome to Razorwire, the podcast where we share our take on the world of cybersecurity with direct, practical advice for professionals and business owners alike. I'm Jim, and in this episode, we're tackling one of the most polarising topics at the intersection of finance and security: cryptocurrency.

I'm joined by Richard Cassidy, Oliver Rochford and Jonathan Care, and together, we debate whether Bitcoin has solved any real problems or simply enabled cybercriminals to operate at an unprecedented scale, with 98% of ransomware payments now made in cryptocurrency.

Summary

This episode looks at how cryptocurrency has impacted real-world security and policy, including how it has facilitated over $3 billion in theft by state-sponsored groups like Lazarus to fund North Korea's nuclear programme and romance scams that have drained 4.6 billion victims with zero recourse. Everything illegal in traditional financial markets is legal in crypto. Yet in Argentina, Venezuela and Nigeria, people use it to preserve value against hyperinflation and bypass authoritarian controls. The debate centres on whether governments truly control crypto through exchanges and legal tender conversion, whether blockchain transparency helps law enforcement more than it helps criminals and whether ransomware payment rates dropping to 19% proves cybersecurity is winning despite crypto, not because of it.

Three key talking points from this episode:

1. Criminal Infrastructure and the Ransomware Economy. Find out how cryptocurrency is used for ransomware payments and how this has enabled the ransomware epidemic. Learn about state-sponsored theft, romance scams operating at an industrial scale and why dark web marketplaces like Hydra and AlphaBay succeeded Silk Road in facilitating organised crime. Discover the impact of payment rates dropping to 19% as companies choose disaster recovery over paying criminals.
2. Government Control vs Decentralisation Claims. Explore the heated debate about whether governments truly control cryptocurrency through regulating exchanges and legal tender conversion or whether the protocol itself remains ungovernable. Learn why KYC requirements at exchanges undermine the original vision of anonymity, how states force participation through tax requirements and whether crypto can function without an army to back it.
3. Real-World Use Cases vs Original Promises. Discover how cryptocurrency is being used in Argentina, Venezuela and Nigeria to preserve value against hyperinflation and bypass authoritarian capital controls. Examine whether these legitimate use cases justify a technology that hasn't solved its original problems: transaction speed remains too slow for real-time use, energy consumption is enormous compared to Visa, scalability hasn't improved and volatility undermines its claim as a stable store of value.

If you’re a cybersecurity professional looking to understand both the promise and peril of cryptocurrency, this episode is essential listening.

On the lawless nature of cryptocurrency:

"Every scam, every market rig that has been outlawed in real world money markets is wide open in crypto. As Richard points out, we're not only deregulated, it is lawless."

Jonathan Care

Listen to this episode on your favourite podcasting platform: https://razorwire.captivate.fm/listen

1. Cryptocurrency as Ransomware's Preferred Payment Method. Learn why ransomware payments use cryptocurrency and how this payment method enabled the ransomware epidemic that became every CISO's biggest headache.
2. Declining Ransomware Payment Rates. Discover why payment rates dropped to just 19% in 2024, with overall payments down 35% to $813.55 million, as companies increasingly choose disaster recovery over paying criminals.
3. The Irreversibility Problem. Learn why cryptocurrency transactions being irreversible means mistakes and theft are permanent, with no chargebacks or recourse for victims of fraud.
4. State-Sponsored Cryptocurrency Theft. Understand how the Lazarus Group has stolen over $3 billion in crypto through targeting exchanges, DeFi protocols and blockchain bridges.
5. Romance Scams and Pig Butchering Operations. Learn about the explosion in crypto-enabled romance scams, fake investment platforms and rug pulls operating at industrial scale.
6. Pump and Dump Market Manipulation. Find out why pretty much everything untoward is perfectly legal in crypto, from coordinated manipulation on Telegram and Discord to influencer fraud, wash trading and spoofing.
7. Government Control Through Legal Tender Conversion Understand why governments ultimately control cryptocurrency through regulating exchanges, requiring tax payments in fiat currency and controlling the conversion points between crypto and legal tender.
8. Blockchain Transparency for Law Enforcement. Learn how public blockchains can be easier to analyse than shell companies behind offshore banking, with tools like Chain Analysis, Elliptic and Interpol using on-chain data to track illicit networks.
9. Proof-of-Work Mining's Environmental Impact. Examine the massive energy consumption of cryptocurrency mining, why specialised hardware becomes obsolete within a year and the climate impact of a payment system processing fewer transactions than Visa does in an hour.
10. Exchange Security Failures and Hacks. See how exchanges like Mount Gox and BYBIT lost billions through security failures and why holding crypto at exchanges rather than in personal wallets creates unnecessary risk.

1. Financial Crime Enforcement Network (FinCEN) US agency tracking financial crime, referenced for 2024 ransomware payment statistics showing 35% decrease to $813.555 million. https://www.fincen.gov/
2. Chain Analysis Blockchain analysis platform helping law enforcement track cryptocurrency transactions and disrupt criminal networks. https://www.chainalysis.com/
3. Elliptic Cryptocurrency investigation platform used by law enforcement and financial institutions to identify criminal activity on blockchains. https://www.elliptic.co/
4. Lazarus Group North Korean state-sponsored threat actor attributed with over $3 billion in cryptocurrency theft to fund nuclear programmes. Overview: https://www.cisa.gov/topics/cyber-threats-and-advisories/advanced-persistent-threats/north-korea
5. Hydra Market Russian-language dark web marketplace that succeeded Silk Road before being shut down in 2022, facilitating billions in illicit cryptocurrency transactions. Background: https://www.europol.europa.eu/media-press/newsroom/news/world%E2%80%99s-biggest-marketplace-dark-web-offline
6. AlphaBay Major dark web marketplace that operated from 2014-2017, enabling cryptocurrency-based transactions for drugs, weapons and stolen data. https://www.justice.gov/opa/pr/alphabay-largest-online-dark-market-shut-down
7. Bitcoin Original cryptocurrency discussed throughout the episode. https://bitcoin.org/
8. Ethereum (Ether) Second major cryptocurrency referenced in discussions. https://ethereum.org/
9. Monero Privacy-focused cryptocurrency mentioned as tool for money laundering and obfuscation. https://www.getmonero.org/

Hello, I am James Rees, the host of the Razorwire podcast. This podcast brings you insights from leading cyber security professionals who dedicate their careers to making a hacker’s life that much more difficult.

Our guests bring you experience and expertise from a range of disciplines and from different career stages. We give you various viewpoints for improving your cyber security – from seasoned professionals with years of experience, triumphs and lessons learned under their belt, to those in relatively early stages of their careers offering fresh eyes and new insights.

With new episodes every other Wednesday, Razorwire is a podcast for cyber security enthusiasts and professionals providing insights, news and fresh ideas on protecting your organisation from hackers.

For more information about us or if you have any questions you would like us to discuss email [email protected].

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