How Does an Attacker Cash out Their Illicit Gains? ⎊ Path

How Does an Attacker Cash out Their Illicit Gains?

After successfully double-spending, the attacker holds a liquid asset (e.g. Bitcoin, stablecoins) obtained from the exchange.

They typically move this asset through mixing services or multiple addresses to obscure the trail. Finally, they may use peer-to-peer exchanges or centralized exchanges with lax KYC/AML to convert the crypto into fiat currency or use it to purchase other, less traceable cryptocurrencies.

How Do ‘Mixers’ or ‘Tumblers’ Relate to the Challenges of AML on Public Blockchains?

How Does Network Congestion Affect Confirmation Time and Double-Spend Risk?

How Does a Double-Spend Attack Work Using 51% Control?

What Role Does Transaction Confirmation Depth Play in Mitigating the Risk of a Double-Spend?

How Would the Introduction of a Travel Rule Protocol for P2P Transfers Impact the Pricing of Crypto Options?

What Is a “Margin Call” and How Would a Double-Spend on Collateral Trigger It?

What Are the Economic Incentives for an Attacker to Perform a Double-Spend?

How Does the Cost of an Attack Compare to the Potential Profit from a Double-Spend?

Glossar

Cash Out

Realization ⎊ Cash out, within cryptocurrency, options, and derivatives, represents the conversion of an asset position into fiat currency or another designated asset, effectively terminating the exposure to price fluctuations.