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An Anatomy of Crypto-Enabled Cybercrimes

Author

Listed:
  • Will Cong

    (S.C. Johnson College of Business, Cornell University, Ithaca, New York 14853; and International School of Finance, Fudan University, Shanghai 200437, China; and National Bureau of Economic Research, Cambridge, Massachusetts 02138)

  • Campbell Harvey

    (National Bureau of Economic Research, Cambridge, Massachusetts 02138; and Fuqua School of Business, Duke University, Durham, North Carolina 27708)

  • Daniel Rabetti

    (National University of Singapore Business School, Singapore, Singapore 119240)

  • Zong-Yu Wu

    (Palo Alto Networks, London EC4V, United Kingdom)

Abstract

The advent of cryptocurrencies and digital assets holds the promise of improving financial systems by offering cheap, quick, and secure transfer of value. However, it also opens up new payment channels for cybercrimes. Assembling a diverse set of public on- and off-chain, proprietary, and hand-collected data, including attacker–victim negotiations and dark web conversations in Russian, we present an initial anatomy of crypto-enabled cybercrimes, highlighting relevant economic issues and proposing areas for future research. Among others, we find ransomware, as the most dominant organized crypto-enabled cybercrime, entails criminal gangs that operate like firms who adopt modern revenue models and carefully manage their reputations. We suggest that blanket restrictions on cryptocurrency usage may prove counterproductive. Instead, blockchain transparency enables effective forensics for tracking, monitoring, and shutting down dominant cybercriminal organizations, which potentially facilitates a more secure and reliable crypto ecosystem in the longer term.

Suggested Citation

  • Will Cong & Campbell Harvey & Daniel Rabetti & Zong-Yu Wu, 2025. "An Anatomy of Crypto-Enabled Cybercrimes," Management Science, INFORMS, vol. 71(4), pages 3622-3633, April.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:4:p:3622-3633
    DOI: 10.1287/mnsc.2023.03691
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    References listed on IDEAS

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    1. Sokolov, Konstantin, 2021. "Ransomware activity and blockchain congestion," Journal of Financial Economics, Elsevier, vol. 141(2), pages 771-782.
    2. Dan Amiram & Bjørn N. Jørgensen & Daniel Rabetti, 2022. "Coins for Bombs: The Predictive Ability of On‐Chain Transfers for Terrorist Attacks," Journal of Accounting Research, Wiley Blackwell, vol. 60(2), pages 427-466, May.
    3. Makarov, Igor & Schoar, Antoinette, 2021. "Blockchain analysis of the Bitcoin market," LSE Research Online Documents on Economics 118897, London School of Economics and Political Science, LSE Library.
    4. Sean Foley & Jonathan R Karlsen & Tālis J Putniņš, 2019. "Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies?," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1798-1853.
    5. Igor Makarov & Antoinette Schoar, 2021. "Blockchain Analysis of the Bitcoin Market," NBER Working Papers 29396, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Yang, Ming-Yuan & Chen, Zhe-Kai & Hu, Jingwen & Chen, Yiru & Wu, Xin, 2025. "Multidimensional information spillover between cryptocurrencies and China’s financial markets under shocks from stringent government regulations," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 100(C).
    2. Aslanidis, Nektarios & Bariviera, Aurelio & Kapetanios, George & Sarafidis, Vasilis, 2025. "Heterogeneous Exposures to Systematic and Idiosyncratic Risk across Crypto Assets: A Divide-and-Conquer Approach," MPRA Paper 125124, University Library of Munich, Germany.
    3. repec:osf:osfxxx:g2q5t_v1 is not listed on IDEAS
    4. Zhang, Luyao, 2023. "Machine Learning for Blockchain: Literature Review and Open Research Questions," OSF Preprints g2q5t, Center for Open Science.

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    Keywords

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • K24 - Law and Economics - - Regulation and Business Law - - - Cyber Law
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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