There are cyber attacks using ransomware. In such cases ransom payment is made to the hackers. Cryptocurrency and crypto exchanges are the key tools used by cyber extortionists. The vast sums paid by corporates are channelised through these tools.

Here the attacker provides a bitcoin address where the payment must be made. After payment, the system will be operational again. The victim calls up the Bitcoin address. (26 to 34 characters in length) while signing onto a crypto exchange to make the deposit.

This payment can be run through a crypto mixer. It hides the trial of ownership by mixing it with the holdings of other people. Alternatively, the ransom payment can be converted to a different cryptocurrency. On the dark web, they recruit what are called money mules who withdraw Bitcoin from certain accounts.

Bitcoin transactions, though anonymous, could be seen by anyone. An observer can see the arrival of cash. But access to money requires a private key (essentially a password). Ransomware groups do not share this with anyone outside their operation.

There are deliberations on regulating such transactions.