Ransomware and Cryptocurrency: A Symbiotic Relationship or a Temporary Fix?

Ransomware attacks have grown exponentially over the past few years, largely due to the anonymity and convenience provided by cryptocurrency. However, many experts believe the true issue behind the surge in ransomware activity isn’t cryptocurrency itself but rather poor cyber hygiene within organizations. So, could ransomware survive without cryptocurrency? Let’s dive into the details.

Ransomware and Cryptocurrency: A Dangerous Partnership

In the realm of cybersecurity, ransomware has become a well-known threat. The number of attacks continues to climb year after year, with 2023 and 2024 marking record-setting periods. In fact, the first quarter of 2025 is already showing a similar upward trajectory. The roots of ransomware go back to 1989, when the first attack made headlines. At that time, attackers demanded ransom payments using traceable methods such as standard mail. Fast forward to today, and cryptocurrency—particularly Bitcoin—has revolutionized the way ransomware groups operate, allowing for almost untraceable payments.

Despite the heavy reliance on cryptocurrency, experts suggest that ransomware attacks would continue even without this technology. While it certainly provides a more efficient and anonymous way to transfer ransom payments, ransomware groups are far from dependent on it. These criminal networks are incredibly adaptable, and even without cryptocurrency, they would likely find alternative methods of conducting their operations.

The Evolving Nature of Ransomware Attacks

Over the last five years, ransomware activity has seen a steep rise. In response, the cybersecurity industry and governments have taken steps to disrupt the financial flow of these cybercriminals. For instance, the U.S. government imposed sanctions on virtual currency exchanges, and some states—such as North Carolina and Florida—have even placed restrictions or outright bans on ransom payments. Yet, these measures have had little to no impact on the frequency of ransomware attacks in those regions.

As Rebecca Moody, head of data research at Comparitech, explains, ransomware gangs are highly adaptable and can always find new ways to target organizations. Even if cryptocurrency were no longer available, cybercriminals could still sell the stolen data they harvest from their victims. This would allow them to monetize their efforts without needing to rely on traditional ransom payments.

The Role of Cyber Hygiene in Ransomware

Experts agree that poor cyber hygiene is a significant driver of ransomware attacks. Despite widespread alerts and clear guidelines, organizations continue to neglect fundamental security practices. Many companies fail to implement adequate backup and recovery plans, leaving them vulnerable to prolonged disruptions during an attack.

Christiaan Beek, senior director of threat analytics at Rapid7, emphasizes that the real issue lies with organizations’ cybersecurity practices. He notes that many companies still struggle to adopt basic security measures, such as using multi-factor authentication (MFA) and ensuring strong passwords on edge devices. With the increasing use of AI technologies, these weak security foundations are becoming even more problematic.

In fact, Rapid7 has tracked over 80 active ransomware groups in just the past quarter. While some notorious gangs continue to dominate the scene, new opportunistic groups are emerging. The rise of ransomware-as-a-service (RaaS) and other low-barrier-to-entry tools means that even less-skilled attackers can now join the ransomware game, further escalating the threat landscape.

The Potential Impact of Cryptocurrency Loss

Although ransomware groups have proven to be adaptable, there would be a temporary effect if the cryptocurrency market were to collapse or become heavily regulated. Johnathon Miller, vice president of security operations at Lumifi, suggests that many ransomware groups would likely falter without access to cryptocurrency. While some may find alternative methods of operating, the absence of this payment mechanism would cause significant disruption in the short term.

Experts also agree that better regulation of cryptocurrency exchanges could help mitigate ransomware attacks. If authorities were able to introduce more oversight into the cryptocurrency market, it could make it harder for ransomware actors to scale their operations. Additionally, it could help track and expose the leaders behind these malicious networks, making it easier for law enforcement to take action.

What Undercode Say:

Ransomware’s dependency on cryptocurrency is undeniably significant, but it isn’t the root cause of the problem. The rise in ransomware attacks is more closely linked to systemic issues, such as poor cyber hygiene and the ease with which cybercriminals can monetize their efforts. As the article suggests, ransomware groups would likely survive even without cryptocurrency, although their methods might shift.

One of the core problems is the inability—or unwillingness—of organizations to adopt basic cybersecurity practices. Ransomware gangs exploit these vulnerabilities, finding success in targeting companies that fail to prioritize security measures. The presence of cryptocurrency has certainly made things easier for these criminals, but it is the lack of robust cybersecurity measures and weak organizational responses that truly fuels the rise in ransomware attacks.

The ransomware landscape is also evolving with the growing trend of ransomware-as-a-service (RaaS). This service-based model allows less-skilled actors to become involved in attacks, which only serves to expand the scope of the problem. The cybersecurity industry must adapt quickly, and that includes shifting the focus from reactive measures to proactive defense mechanisms.

As for the future of cryptocurrency, while its collapse could disrupt ransomware operations in the short term, these criminal networks are resourceful. The fundamental issue remains that organizations are not taking the necessary steps to protect themselves, which continues to make them easy targets.

Fact Checker Results:

Ransomware and Cryptocurrency Dependency: Ransomware groups rely on cryptocurrency, but it’s not the sole reason for their success. Cyber hygiene remains the critical factor.
Government Regulations: Attempts to regulate cryptocurrency have had limited impact on the frequency of attacks, as cybercriminals adapt.
Long-Term Survival of Ransomware: While cryptocurrency could cause temporary disruption, ransomware groups would find other ways to continue their activities.