Ransomware and Bitcoin Heists: Evolution, Threats and Detection Strategies in Hybrid Cybercrime

Abstract: Ransomware has evolved from simple file-encryption malware into a sophisticated criminal enterprise, increasingly intertwined with Bitcoin and other cryptocurrencies. While early attacks focused on encrypting data and demanding ransom, modern ransomware often combines extortion with direct cryptocurrency theft, exploiting vulnerabilities in wallets, exchanges, or decentralized finance (DeFi) protocols [1], [2]. Bitcoin’s pseudonymity, global reach, and liquidity make it both a preferred ransom payment medium and a direct target for attackers, who use complex laundering techniques such as mixers, cross-chain swaps, and dark-net marketplaces to obscure funds [3], [4]. Despite improvements in blockchain forensics and law enforcement interventions, attackers continuously adapt, blending ransomware and crypto-heist strategies to maximize profit while complicating attribution [5]. This study surveys the evolution of ransomware, examines the convergence with Bitcoin-based theft, and highlights detection, prevention, and forensic strategies that integrate endpoint monitoring, blockchain intelligence, and cross-jurisdictional coordination to disrupt these hybrid attacks effectively.

Keywords: Ransomware; Bitcoin; Cryptocurrency Heists; Blockchain Forensics; Ransomware-as-a-Service (RaaS); Cybercrime Economy; Money Laundering; DeFi Exploits; Cybersecurity Defense