There is a distinct lack of criminological research examining victimisation experiences in emerging cryptocurrency frauds. At the same time, online cryptocurrency communities have become a key part of the social milieu of the cryptocurrency ecosystem where scams are commonplace. Using Reddit forum data from the subreddit r/ CryptoCurrency, this exploratory qualitative study investigates how users in an online cryptocurrency community share knowledge and experiences of cryptocurrency scams. Thematic analysis revealed how online cryptocurrency communities discuss scams by (1) arming the community (e.g. newcomer guides, personal disclosures of scam victimisation, and reflections on the technological affordances in scams); and (2) establishing community norms in response to cryptocurrency scams (e.g. protecting the community, ‘scambaiting’ practices, normalising scams as an outcome of ‘decentralisation’). Gaining a deeper understanding of cryptocurrency scam experiences provides timely insights into the intersections between victims/offenders in digital environments, how we can respond to the recent growth in cryptocurrency scams, and the variegated ways that victims seek assistance following experiences.
Pengcheng Xia, Yu Zhou, Kailong Wang, Kai Ma · 9 authors
The dark web has emerged as the state-of-the-art solution for enhanced anonymity. Just like a double-edged sword, it also inadvertently becomes the safety net and breeding ground for illicit activities. Among them, cryptocurrencies have been prevalently abused to receive illicit income while evading regulations. Despite the continuing efforts to combat illicit activities, there is still a lack of an in-depth understanding regarding the characteristics and dynamics of cryptocurrency abuses on the dark web. In this work, we conduct a multi-dimensional and systematic study to track cryptocurrency-related illicit activities and campaigns on the dark web. We first harvest a dataset of 4,923 cryptocurrency-related onion sites with over 130K pages. Then, we detect and extract the illicit blockchain transactions to characterize the cryptocurrency abuses, targeting features from single/clustered addresses and illicit campaigns. Throughout our study, we have identified 2,564 illicit sites with 1,189 illicit blockchain addresses, which account for 90.8 BTC in revenue. Based on their inner connections, we further identify 66 campaigns behind them. Our exploration suggests that illicit activities on the dark web have strong correlations, which can guide us to identify new illicit blockchain addresses and onions, and raise alarms at the early stage of their deployment.
Vulnerabilities in smart contracts may trigger serious security events, and the detection of smart contract vulnerabilities has become a significant problem. In this paper, to solve the limitations of current deep learning-based vulnerability detection methods in extracting various code critical features, using the multi-scale cascade encoder architecture as the backbone, we propose a novel Multi-Scale Encoder Vulnerability Detection (MEVD) approach to hit well-known high-risk vulnerabilities in smart contracts. Firstly, we use the gating mechanism to design a unique Surface Feature Encoder (SFE) to enrich the semantic information of code features. Then, by combining a Base Transformer Encoder (BTE) and a Detail CNN Encoder (DCE), we introduce a dual-branch encoder to capture the global structure and local detail features of the smart contract code, respectively. Finally, to focus the model’s attention on vulnerability-related characteristics, we employ the Deep Residual Shrinkage Network (DRSN). Experimental results on three types of high-risk vulnerability datasets demonstrate performance compared to state-of-the-art methods, and our method achieves an average detection accuracy of 90%.
Vinay Rishiwal, Udit Agarwal, Mano Yadav, Aziz Alotaibi · 6 authors
The gaming industry, which predominantly depends on centralized platforms, faces growing challenges in protecting digital assets, ensuring gameplay fairness, and addressing online fraud. Conventional gaming systems store player data on centralised servers, including sensitive financial and personal information, making them particularly vulnerable to cyberattacks and security breaches. With gaming transactions frequently occurring on unsecured mobile and desktop platforms, player accounts are often at risk of theft, hacking, and fraud. These security vulnerabilities result in significant financial losses for players and developers, underscoring the urgent need for a secure, transparent, decentralized solution. In light of these challenges, adopting blockchain technology in gaming platforms has emerged as a promising and transformative solution. Blockchain’s decentralized and immutable ledger offers enhanced security, making it nearly impossible for malicious actors to manipulate transaction records or steal digital assets. Research and practical implementations have shown that blockchain can effectively reduce online fraud by securely storing in-game assets and transactions on decentralized networks, ensuring their integrity and resistance to tampering. This paper makes several significant contributions to understanding how blockchain technology can revolutionize the gaming industry. First, it provides a comprehensive analysis of blockchain’s security advantages, emphasizing its capacity to reduce online fraud and enhance the protection of digital assets. Second, the paper explores how blockchain enhances player autonomy by establishing secure digital identities and tokenising in-game assets. By enabling players to own, trade, and exchange their assets directly, blockchain fosters a decentralized gaming economy that grants players greater control over their virtual possessions. Finally, the paper identifies emerging trends and potential research avenues in blockchain-enabled gaming, offering valuable insights into the challenges and opportunities in this rapidly evolving field.
Bitcoin, introduced in late 2008 and implemented in early 2009, has emerged as the most successful cryptographic currency in history, pioneering the concept of a decentralized global cryptocurrency. Despite its quiet launch, Bitcoin rapidly grew to represent billions of dollars in economic value, leading to extensive analysis and research into its design, properties, vulnerabilities, and future challenges. This paper provides a comprehensive overview of Bitcoin, focusing on its benefits and examining the specific challenges and issues it faces in India. Additionally, the paper highlights the risks associated with investing in Bitcoin. The proposed problem centers on the regulatory, technological, and market challenges that hinder Bitcoin's adoption and stability in the Indian context. The solution involves analyzing these challenges and suggesting strategic measures, such as regulatory frameworks and risk management practices, to enhance the secure and sustainable growth of Bitcoin in India.
Cryptocurrency tracker is an online platform that provides a userfriendly experience. Users get a simple and userfriendly experien ce through the user interface. Users can sign into their account with Gmail or a mobile number for easy access to their account. U sers can track prices of different cryptocurrencies and view currency charts. Using this user interface, users can find prices and ot her relevant information about cryptocurrencies. The app helps users to create watchlists and we can track prices. We can set alerts for cryptocurrency prices. We can customize notifications and help understand new cryptocurrency trends. Users can easily find various cryptocurrencies and track future crypt currency trends. It helps users invest in new popular cryptocurrencies that will be more useful to them in the future. Overall, the Cryptocurrency Tracker web app is a valuable tool for anyone looking to invest, trade, or just keep an eye on the cryptocurrency market. It provides realtime data and insights that can help users make informed investment decisions and stay abrea st of the latest industry trends and developments.
This study addresses the challenge of counterfeit goods in sustainable supply chains and its impact on achieving the UN Sustainable Development Goal of "ensuring sustainable consumption and production." By utilizing a combined methodology of qualitative data from in-depth interviews with industry experts, supply chain professionals, and technology specialists, along with quantitative data from literature and case studies, the research explores the applicability of blockchain technology in countering counterfeiting within supply chains. An implementation framework is developed, considering industry-specific barriers and mitigation measures. It investigates enablers, barriers, implementation strategies, and monitoring plans, focusing on stakeholder incentives. Additionally, a framework for blockchain-based traceability is presented, promoting visibility, authentication, and accountability to combat counterfeit goods in sustainable supply chains. The study provides valuable insights for securing supply chains, protecting consumers, and advancing industry sustainability within the manufacturing context. The recommended framework leverages blockchain's potential to revolutionize supply chain integrity and address the issue of counterfeit products effectively.
Victor Chinedu Achebe, Oluwatosin Ilori, Ngozi Joan Isibor
Corporate fraud and legal non-compliance represent persistent risks to organizational integrity, financial performance, and stakeholder trust. Despite the widespread implementation of conventional control systems, many enterprises continue to face challenges in detecting fraudulent behavior and ensuring consistent compliance with regulatory standards. These challenges are often exacerbated by fragmented data environments, delayed reporting mechanisms, and vulnerabilities to human error or deliberate manipulation. In response to these limitations, blockchain technology has emerged as a transformative tool in corporate governance, offering a decentralized, transparent, and immutable platform for transaction recording and rule enforcement. This proposes a conceptual framework for deploying blockchain technology to strengthen corporate fraud detection and legal compliance systems. The framework integrates key blockchain features such as distributed ledgers, smart contracts, and automated audit trails with existing organizational processes to enhance data reliability, increase transparency, and support real-time compliance monitoring. It outlines critical components including the data integration layer, blockchain infrastructure selection (public vs. permissioned), a smart contract execution engine, and advanced analytics for anomaly detection. Furthermore, the framework addresses essential considerations such as interoperability with legacy systems, legal and regulatory alignment, and data privacy concerns. The proposed framework is intended to guide practitioners, auditors, compliance officers, and researchers in designing and implementing blockchain-based solutions that mitigate fraud risks and improve regulatory adherence across diverse industry sectors. By leveraging blockchain’s unique capabilities, organizations can move from reactive to proactive compliance management, thereby reducing the incidence of corporate misconduct and enhancing overall accountability. This conceptual exploration lays the foundation for future empirical research and pilot implementations, contributing to the growing discourse on the role of emerging technologies in corporate risk management and legal governance.
Cryptocurrencies have become a topic of heated discussion globally, leading some countries, such as India, to contemplate prohibition due to perceived economic risks. However, the substantial financial interests involved and concerns raised by fintech entrepreneurs have compelled governments to consider regulating the cryptocurrency market. This research aims to delve into the historical trajectory of cryptocurrencies, scrutinize the legal complexities they present, and analyse the imperative for comprehensive regulatory measures. Furthermore, it will explore the international regulatory frameworks currently in place and emerging trends, with a particular emphasis on India's regulatory environment. This includes an examination of past developments, regulatory interventions, judicial rulings, and prospective trends within the country's crypto sphere.
Vladimir Popov, Mikhail Krupin, Andrew Gross, Georgi Koreli
New advancements in zero-knowledge proof construction, including improvements in user experience, have made blockchain-based privacy applications more accessible than ever.However, additional measures are required to balance the needs of regulators, the basic privacy rights of users, and the constant threat of bad actors.To address these issues, privacy protocols can introduce features designed to increase transparency, encourage compliance, and prevent illicit use.In this paper, current privacy-preserving methods (privacy pools) are explained along with compliance measures designed to prevent illicit usage.These measures are divided into three broad categories: general restrictions, such as transaction limits, deposit quarantine, and geoblocking; selective disclosure, such as privacy-preserving KYC, proof of innocence, and opt-in reporting; and threat identification and prevention, including AML wallet screening.Each of these methods are described in detail along with examples of three privacypreserving protocols (Hinkal, RAILGUN, and zkBob) which utilize varying combinations of these methodologies to achieve privacy informed by selfregulatory compliance.
The paper delves into the pivotal role of financial technology, particularly cryptocurrencies, in perpetuating child sexual exploitation.It examines methods such as converting cryptocurrency to fiat, using mixers, and exploiting decentralized finance for money laundering, all of which facilitate anonymity and fund child exploitation networks.Additionally, it assesses regulatory effectiveness, considering instruments such as the UN Convention on the Rights of the Child and Indonesia's Law No. 35/2014, an amendment to Law No. 23/2002 on Child Protection, and proposes reforms to bolster child protection measures.Through stakeholder interviews, it uncovers challenges faced by law enforcement, regulators, and child protection agencies, guiding collaborative recommendations to disrupt exploitation networks and safeguard children from harm.Addressing ethical dilemmas, the paper advocates for a holistic approach that prioritizes child welfare and human rights.Moreover, it highlights concerning data from 2019, where the IWF identified 288 new dark web sites selling Child Sexual Exploitation Material (CSEM), reflecting a 238% increase from 2018.Notably, 197 of these sites exclusively accepted payment in virtual currencies, exacerbating the challenge.Emphasizing the need for action, the paper underscores the Regional Plan of Action for the Protection of Children from All Forms of Online Exploitation and Abuse in ASEAN (RPA), stressing the urgency to address anonymous users and transactions.In conclusion, the paper underscores the necessity for collective action to combat the misuse of financial technology in child exploitation.It advocates for regulatory reforms, increased collaboration, and ethical considerations to ensure a safer future for vulnerable children worldwide.
Bekti Cahyo Hidayanto, Izzat Aulia Akbar, R. Aditya Rayhan Zanesty
This study focuses on specifically looking at how penetration testing affects the market value of smart contracts. This study uses a web-based IDE to deploy smart contracts, and it performs penetration testing utilizing reentrancy and delegatecall attacks. The targeted smart contract is exposed to potential exploitation as a result of the assaults' successful implementation. This study shows that penetration testing indirectly affects token prices since incorrect parameter selection and successful attacks might cause changes in token prices. The results emphasize how critical it is to find and fix smart contract vulnerabilities in order to reduce risks and potential losses.
This study aims to understand the vulnerabilities faced by enterprises operating on token-based blockchain businesses and the role of legal, due diligence procedures in mitigating such risks. It employed the Preferred Reporting Items for Systematic Reviews and Meta-Analyses method and sourced data from DeFillama, a platform tracking decentralized finance developments, to categorize hacking incidents into five major groups: Ecosystem, Infrastructure, Protocol Logic, Rugpull, and Smart Contract Language. The findings highlight that Infrastructure attacks, mainly through Private Key Compromise, are the most damaging. They cause losses of over 800 million dollars between 2020 and 2023. It necessitates comprehensive and adaptable legal, due diligence strategies focusing on jurisdictional legal frameworks, platform usage terms, regulatory compliance, and potential legal issues. The study underscores the importance of further research to evaluate and enhance the effectiveness of these measures in addressing the unique challenges of blockchain technology, which are crucial for enhancing the resilience and sustainability of blockchain enterprises, thereby promoting global trust in this emerging field.
Present work explores the transformative potential of blockchain technology in cybersecurity.It begins with a fundamental introduction to blockchain's workings, then focuses on its current trends in bolstering cybersecurity, such as identity management and tamper-proof data storage.Real-world examples are used to guide practical implementations in industries like healthcare, finance, and voting.The paper also explores potential developments in the future, such as quantumresistant cryptography, decentralized autonomous organizations, and artificial intelligence integration.The paper concludes by assessing the lasting impact of blockchain on the broader cybersecurity landscape, highlighting its ability to reshape trust paradigms and empower individuals to control their digital identities.
Ariel Burgess, Rhianna Hamilton, Christian Leuprecht
Abstract Inadequate oversight and an inchoate appreciation are giving terrorist groups ready access to transboundary financial transfers by means of virtual currency. This chapter counters the prevailing approach that treats cryptocurrency-enabled crimes, such as terrorism, as monolithic. This chapter demonstrates that terrorist groups are using cryptocurrency and decentralized finance to fundraise and transfer funds in conjunction with the traditional financial system. Since actual case studies are few and data limited, this chapter is a proof of concept: it compares terrorist financing schemes by the Al-Qassam Brigades and Al Qaeda that used virtual assets. The comparison of virtual assets being used finds that standards developed and recommended by the Financial Action Task Force (FATF) are wholly inadequate to contain the proliferation of decentralized finance technology and centralized virtual assets as drivers of the global Illicit International Political Economy (IIPE). FATF recommendations are not sufficiently nuanced, nor are they effective at detecting, disrupting and deterring he nexus of crypto, crime and terror. To make matters worse, FATF members are falling short on implementing even FATF’s inadequate standards. The chapter concludes that FATF needs to: clarify inclusion criteria under the current definition of virtual assets; broaden regulations, improve interagency collaboration, and formulate more nuanced recommendations that are sensitive to crypto-enabled crimes across different criminal activities and criminogenic factors.
Peng Liao, Chaoge Liu, Jie Yin, Zhi Wang · 5 authors
Digital assets have boomed over the past few years with the emergence of Non-fungible Tokens (NFTs). To be specific, the total trading volume of digital assets reached an astounding $55.5 billion in 2022. Nevertheless, numerous security concerns have been raised by the rapid expansion of the NFT ecosystem. NFT holders are exposed to a plethora of scams and traps, putting their digital assets at risk of being lost. However, academic research on NFT security is scarce, and the security issues have aroused rare attention. In this study, the NFT ecological process is comprehensively explored. This process falls into five different stages encompassing the entire lifecycle of NFTs. Subsequently, the security issues regarding the respective stage are elaborated and analyzed in depth. A matrix model is proposed as a novel contribution to the categorization of NFT security issues. Diverse data are collected from social networks, the Ethereum blockchain, and NFT markets to substantiate our claims regarding the severity of security concerns in the NFT ecosystem. From this comprehensive dataset, nine key NFT security issues are identified from the matrix model and then subjected to qualitative and quantitative analysis. This study aims to shed light on the severity of NFT ecosystem security issues. The findings stress the need for increased attention and proactive measures to safeguard the NFT ecosystem.
Non-fungible tokens (NFTs) are unique tokens with various domains, e.g. real estate, metaverse, gaming and public auctions. However, when minted on public blockchains, the underlying blockchain transaction data can be publicly accessible. This instigated transaction data analysis for various purposes, including cryptocurrency price prediction and NFT market analysis. The public data may be considered privacy-sensitive which sets a barrier to the wider adoption of NFTs. In this work, we present that the analysis of the transaction events can describe activities in NFT applications by establishing connections between transactions and thereby, it can identify information that may be privacy-sensitive. This can be useful in developing suitable privacy-enhancing methods for NFTs. We collected transaction data from a blockchain-based game called Planet IX that was built on the Polygon blockchain and used graph visualisation to provide examples for constructed connections.
The fast-paced development of blockchain technology is evident. Yet, the security concerns of smart contracts represent a significant challenge to the stability and dependability of the entire blockchain ecosystem. Conventional smart contract vulnerability detection primarily relies on static analysis tools, which are less efficient and accurate. Although deep learning methods have improved detection efficiency, they are unable to fully utilize the static relationships within contracts. Therefore, we have adopted the advantages of the above two methods, combining feature extraction mode of tools with deep learning techniques. Firstly, we have constructed corresponding feature extraction mode for different vulnerabilities, which are used to extract feature graphs from the source code of smart contracts. Then, the node features in feature graphs are fed into a graph convolutional neural network for training, and the edge features are processed using a method that combines attention mechanism with gated units. Ultimately, the revised node features and edge features are concatenated through a multi-head attention mechanism. The result of the splicing is a global representation of the entire feature graph. Our method was tested on three types of data: Timestamp vulnerabilities, reentrancy vulnerabilities, and access control vulnerabilities, where the F1 score of our method reaches 84.63%, 92.55%, and 61.36%. The results indicate that our method surpasses most others in detecting smart contract vulnerabilities.