The Crypto Factor Behind Modern Ransomware

How Bitcoin Transformed Cybercrime into a Global Ransomware Industry

In 2025, the crypto world has already shaken: funds stolen from crypto platforms have soared past $2.17 billion year-to-date, led by the $1.5 billion ByBit hack, the largest single breach in crypto history. 

At the same time, ransomware attacks against hospitals, governments, and schools continue to dominate headlines, with nearly every ransom demanded in cryptocurrency. Chainalysis reported that 97.8% of tracked ransomware payments last year were made in crypto a figure that underscores how digital assets have become the lifeblood of this criminal industry.

In an exclusive interview with Coinpedia, investor and cybersecurity expert David Sehyeon Baek explained why ransomware and crypto are so tightly linked.

“Cryptocurrency gives ransomware crews a payment rail that is global, fast, and pseudonymous, exactly what they need to operate at scale,” he said.

Why Crypto Supercharged Ransomware

Baek described how the shift to Bitcoin changed the game. With cryptocurrency, attackers could suddenly demand payments across borders without revealing their identities. They automated decryption keys the moment funds landed, cutting their cash-conversion cycle short and raising their chances of getting paid. Attackers also chain-hop, moving funds from Bitcoin to stablecoins and across multiple blockchains, making it harder for investigators to trace stolen money.

The results are clear. After cryptocurrency became the default ransom medium, both attack volume and median payouts rose sharply.

Industrialization of Ransomware

Baek added that modern ransomware-as-a-service models depend entirely on crypto: “The massive affiliate programs we see today rely on instant, programmatic crypto payments to keep partners motivated.” 

Without cryptocurrency’s borderless and semi-anonymous nature, ransomware might still exist, but it would look more like the nuisance attacks of the early 2000s rather than today’s global threat.