[HN Gopher] Bitcoins, Blockchains, and Botnets
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       Bitcoins, Blockchains, and Botnets
        
       Author : tantalor
       Score  : 67 points
       Date   : 2021-03-17 20:42 UTC (2 days ago)
        
 (HTM) web link (blogs.akamai.com)
 (TXT) w3m dump (blogs.akamai.com)
        
       | sharemywin wrote:
       | Not quite the same use case. But I wrote about something similar
       | in 2016.
       | 
       | I'm not a good writer so ignore the rambling.
       | 
       | https://medium.com/@sharemywin/after-reading-avoiding-a-poin...
        
       | redm wrote:
       | Interesting idea that is sure to gain more traction, perhaps
       | better implemented on ETH where they have more control. This
       | implementation seems fatally flawed:
       | 
       | "This means for $1 about 2,500 disruption transactions can be
       | placed in the wallet. In the case of the current IP address, the
       | Satoshi values that must be sent to the wallet by the operators
       | to recover control total 43,262 Satoshis, or about $16.50. The
       | quick math at current market prices for BTC suggests that for
       | every $1 spent on disruption, the operators will need to spend
       | over $41,000 ($16.50*2,500) to recover their operations and get
       | the orphaned infected systems back to their (current) IP
       | address."
        
         | qqii wrote:
         | Couldn't they just query outgoing transactions from the wallet?
         | 
         | The estimates given also do not factor transaction fees
         | (currently 0.00041 BTC ~= 25 USD) , the estimated costs are
         | only in value given to the attacker.
         | 
         | For this specific botnet continuous denial of service also
         | doesn't make sense. The attacker could easily setup an upgrade
         | at an ip that chooses a different public address.
        
           | amouat wrote:
           | I don't think they owned the wallet, so they couldn't make
           | outgoing transactions. I assume they didn't want to use a
           | wallet they did control in case it could be used to identify
           | them.
        
             | qqii wrote:
             | It just seems like a very thin layer of plausible
             | deniability, in the current setup they control wallets that
             | send the transactions that also can be linked back to them.
        
               | throwawayffffas wrote:
               | Agreed, I think they didn't really put much thought into
               | it. Their next version will look at only outgoing
               | transactions. They could also use another coin for lower
               | transaction fees.
        
       | theamk wrote:
       | I don't get it.
       | 
       | This malware makes a single https request to https endpoint for
       | which users can affect contents, api.blockcypher.com. This does
       | not seem too much different from many other places which can be
       | changed by user - reddit, hn user profile, airtable, github,
       | comment section at random website, mailing list archive, etc...
       | 
       | I'd think the solution is going to be the same, too: contact the
       | server and ask them to block URL. In this case, blockcypher
       | should detect the api calls with the right properties (address,
       | query string, user agent) and return error code on them. If they
       | feel creative, maybe return modified answer which will break
       | malware's shell parser, but will not affect regular json calls.
       | 
       | If the blockcypher refuses to cooperate, you deal with it like
       | you do with bulletproof hosting: add hostname to malicious domain
       | list and block at all protected customers' sites.
        
         | sgeisler wrote:
         | Well, the problem with that strategy is that there are many
         | such explorers and returning wrong data isn't in their best
         | interest. Remember that the recipient address doesn't need to
         | be owned by the attacker, it could be one of a big exchange
         | which is of interest. Also the whole process of getting stuff
         | blocked fine granular enough to be viable may slow down
         | blocking enough to be very profitable.
        
       | mysterypie wrote:
       | > _Infected machines will regularly check-in. These methods rely
       | on domains and static IP addresses. Predictably these domains and
       | IP addresses get identified, burned, and /or seized._
       | 
       | Instead of seizing and shutting down the command and control
       | system, why not let it run for awhile and secretly monitor who
       | connects to it? Are the malware operators always connecting to
       | the command and control system via Tor or equivalent? They never
       | slip up? I find it amazing that these huge malware operators are
       | so rarely tracked down.
        
       | sgeisler wrote:
       | The correct way to do this would be using OP_RETURN imo. This
       | special opcode is meant for committing to data like this. So for
       | example one could commit to 4 bytes representing the IP address.
       | To ensure that only authorized parties can update the IP the
       | client should only accept transactions that were sent from a
       | certain address, meaning they are automatically signed with the
       | authorized-party's key.
       | 
       | Definitely an interesting use case for BTC to route around such
       | censorship.
        
       | tantalor wrote:
       | tldr; use bitcoin wallet as DNS
        
       | ur-whale wrote:
       | Using the blockchain to publish ever fresh and indestructible
       | information.
       | 
       | Interesting use of the Bitcoin infrastructure.
       | 
       | Put to work to semi-nefarious ends in this case, but likely not
       | the only use case.
       | 
       | Very nice.
        
       | qqii wrote:
       | Perhaps my reading is incorrect but why did theg decide to use
       | all transactions (something they can't control) versus outgoing
       | transactions (something they have sole control over)?
       | 
       | It also relies solely on blockcypher's api. I wonder if they were
       | contacted and what their stance was.
        
         | ixwt wrote:
         | The article says that the wallet might not be in their control.
         | They believe it might be a part of a coin tumbling/washing
         | operation.
         | 
         | I think the main reason they don't use one they control is the
         | potential to trace where the original funds come from. There
         | might be things you can do to obfuscate things, like tumbling
         | the coins. It's all a risk though.
        
           | qqii wrote:
           | But they have to control a wallet to send the transactions
           | anyway, which could be tracked in the same way?
        
       | jcpham2 wrote:
       | a most excellent write-up, thanks
        
       | ddtaylor wrote:
       | The method they used of encoding the transactions into the output
       | value of the transaction could be done a LOT cheaper if they just
       | mine transaction hashes with 16-bits of prefixed data. It's not
       | that hard to create a transaction over and over until you get the
       | first 16-bits of it's hash exactly as you want (in essence this
       | is basically what Bitcoin mining is, just simply on blocks
       | instead of txs)
       | 
       | Also they could just do it with 4 transactions at 8-bits each
       | too.
        
       | spinny wrote:
       | This is something that we will see happen more and more in the
       | future. We are moving slowly to a more decentralized
       | infrastructure than the current one, it's only plausible that
       | malware writers will adopt more decentralized techniques.
       | 
       | I would probably use another crypto. Dogecoin would probably
       | allow for a bigger payload at a smaller price. Eliminating the
       | api calls described could be possible by implementing such a
       | thing on ethereum, including a full client and running it in
       | light mode. However the described method is much more light-
       | weight
        
       | jl2718 wrote:
       | I hate the idea that lawfully skeptical/paranoid citizens get
       | mixed up with this stuff by paying for these currencies because
       | it appears to them like an acceptable trade-off versus the risks
       | of financial authoritarianism. Crypto would have zero value if
       | only criminals felt the need to use it.
        
         | loceng wrote:
         | Does it have value if criminals can use it freely? There will
         | need to be the same functional centralized systems of justice,
         | accountable, and enforcement.
        
           | fakedang wrote:
           | Lol, Bitcoin started as a (sort of) traceless currency for
           | criminals, and back then it had an actual utility as a
           | financial medium. You could get a fake ID, drugs or unmarked
           | guns or whatever only with Bitcoin. Now it's just a fancy
           | hoarding tool (and no, a highly volatile instrument is not a
           | store for wealth).
        
             | cwkoss wrote:
             | I'd argue it started as a cryptography toy, then became a
             | means of acquiring Pizza, then became a tool for criminals.
        
               | fakedang wrote:
               | The pizza use case happened once. Criminal transactions
               | were happening by the thousands within months of that.
        
             | jl2718 wrote:
             | It was capitalizing a supply chain that had a lot of
             | criminal activity in it, but still the value had to come
             | from exchange with dollars. I guess there is a question of
             | how many people and how much of the economy you sweep up in
             | the term 'criminal', because, as I understand, the vast
             | majority of money that flows into criminal enterprise comes
             | from illegal drug users with legal source income. At this
             | point though, we made billionaires out of those criminals
             | because ordinary 100% lawful citizens around the world fear
             | the financial mismanagement, corruption, and/or
             | authoritarianism of their own governments, depending on
             | where they live. That's sad. Terrible outcome really.
        
         | ryanlol wrote:
         | > Crypto would have zero value if only criminals felt the need
         | to use it.
         | 
         | Of course it would
        
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