Bitcoin Traders Accused of Laundering Money for Ransomware Operators

Hackers and cybercrooks utilizing ransomware threats are on a short list for being sought-after by authorities due to the recent rash of attacks with malware threats that encrypt files on a victim's computer and then collects astronomical amounts of money as a ransom fee. Fundamentally, the business of ransomware is booming, and it means lavish paydays for operators of the aggressive malware.

In the task of cracking down on ransomware perpetrators, US authorities have arrested suspects in a lengthy case that links to data breaches at some of the largest financial firms in America. In addition, authorities have traced links to the data breaches to a money laundering scheme that involves a Bitcoin exchange website that has ties to ransomware operators and sites secretly operating through a New Jersey Credit Union.

Charges following up from initial legal proceedings that started in July 2015 have lead to subsequent charges during March 2016 that accuses theft of data from over 100 million online banking users. The banks and corporate entities where victims came under attack from a data breach ranged from TD Ameritrade and JPMorgan Chase, to News Corp and The Wall Street Journal. Among the banking institutions belonging to victims, some data breaches occurred at some point and time that helped to lead authorities to a malicious Coin.mx Bitcoin trading site.

The Bitcoin trading site that authorities have their eye on has come to a dead end where the perpetrator, Anthony Murgio, was one of the last of four individuals charged with running the Bitcoin exchange portal for money laundering purposes. Other individuals entangled in illegal activities of money laundering were Trevon Gross, a former president of the Helping Other People Excel (HOPE) Federal Credit Union in Jackson, New Jersey.

The path of those involved in what turned out to be a money laundering scheme that takes Bitcoin earnings from ransomware operators and cash out usable funds appears to be vast. Prosecutors are charging and suspecting family members of Murgio, who seem to have assisted in the malicious operation. So far, Murgio and his suspected accomplices are claiming they were unaware of the money laundering services taking place through their Coin.mx site, which authorities claim is making them an indirect accessory of the crime.

The task of cracking down on malware perpetrators and those who work the back-end of the system that extorts millions of dollars from victimized computer users isn't easy. While the latest developments of taking down potential money launderers who assist ransomware operators looks to be a clear-cut conviction and jail time for the accused, there is still a lot of work to be done to settle the case.

The fact of the business of ransomware being rather complicated further complicates matters for authorities who want to put an end to cybercrooks getting rich off of innocent computer users. We suspect the charges will stack up against those who have been accused thus far and possibly slow down the operations of ransomware perpetrators.