Bitcoin Money Laundering Platform Bitblender.io Gets Linked to Huge ‘Sexstortion’ Scheme
The huge sexstortion scam that has been going on, where hackers threaten to reveal videos of users watching porn unless they pay in bitcoin has been linked to Bitlender.io, a Bitcoin money laundering platform.
The scam involves hackers who claim to compromise a user’s computer and record them watching porn via their webcam, and demand a payment in form of bitcoin to prevent them from releasing it online. They communicate using an email, referring to a real password that the victim has used before, hence making it appear real.
Bitblender.io Has Become a Safe Haven for Scammers and Criminals
Owing to the anonymous nature of bitcoin transactions, hackers and cyber criminals have found it to be an attractive medium to use when executing their crooked dealings. According to Dr. Jon Levy, a cryptocurrency attorney representing plaintiffs suing Bitblender and other alleged scams such as AXECC.IO, crypto scammers first purchase passwords of users’ email addresses on Dark Web and then proceed to quickly launder Bitcoin through Bitblender.io.
Speaking about Bitbleder.io and the jurisdiction where it falls, Dr. Levy said:
“The responsibility for much of this is with the British Foreign and Commonwealth office which is in charge of British Indian Ocean Territory and ultimately the .io domain. ICANN and IANA will not police domains, that are up to national authorities and in the case of .io, it is the British who must take out these crypto pirates.”
Bitblender.io uses smart technology, which according to them erases any bitcoin history, making transactions 100% untraceable. According to NullTX, a crypto news outlet, the platform achieves this by deleting the previous blockchain, and goes ahead to redeposit the transacted bitcoins under a new account.
According Dr. Levy, 99% of transactions on Bitblender are fraudulent, and the platform has facilitated laundering of more than a billion dollars of cryptocurrency in the past few years along.
This makes it a perfect place to launder bitcoins.