The Investigation into the Vastaamo Hack Progresses:
- Finnish authorities have traced Monero transactions related to the trial of Julius Aleksanteri Kivimäki, the accused hacker of Vastaamo.
- Kivimäki allegedly demanded a ransom in Bitcoin before converting the funds into Monero, a protocol known for its privacy features.
- The traceability of Monero transactions, considered impossible, has been questioned as a result of this investigation.
The investigation into the hack of Vastaamo, a private mental health company’s database in Finland, took an interesting turn when the Finnish authorities succeeded in tracing Monero transactions.
Julius Aleksanteri Kivimäki, the suspect in this case, is accused of hacking Vastaamo’s database and demanding a ransom paid in Bitcoin (BTC).
In October 2022, he allegedly demanded 40 bitcoins in exchange for not releasing the records of over 33,000 patients. When the ransom was not paid, he allegedly individually targeted patients, receiving payments in Bitcoin, which he then exchanged for Monero through a KYC (Know Your Client)-free exchange, in an attempt to obscure the trail.
Subsequently, the funds were transferred to Binance, where they were converted back into Bitcoin before being distributed among several digital wallets.
The Controversies Surrounding Monero
Monero is renowned for its features focused on transaction privacy, offering users nearly complete anonymity.
This includes Ring Confidential Transactions (RingCT), ring signatures, and stealth addresses, theoretically making Monero transactions untraceable.
However, the Finnish investigation raises questions about the possibility of tracking transactions made with anonymous cryptocurrencies. In 2020, the United States Internal Revenue Service offered a reward to anyone who could trace Monero transactions, highlighting the challenges and controversies surrounding the use of anonymous cryptocurrencies.
