Coinbase Partners Irdeto to Combat 19% Crypto-Fueled Cybercrime

Coinbase, a prominent cryptocurrency exchange, has formed a strategic partnership with Irdeto, a digital platform security specialist and subsidiary of MultiChoice. This collaboration is aimed at combating the illicit use of cryptocurrencies, with a particular focus on disrupting payments for content piracy and other cybercrimes. The alliance leverages the expertise of both organizations to create a more challenging environment for those misusing crypto for illegal activities.

The core objective of this partnership is to enhance Irdeto’s Cyber Services, particularly its Payment Disruption service. This service focuses on identifying threat actors who use cryptocurrency platforms for illegal activities, such as selling pirated content or other illicit services. The initiative also aims to disrupt illicit payments and support law enforcement by providing valuable intelligence and data to help authorities track down offenders and potentially seize criminally acquired digital assets.

The partnership comes at a time when an increasing number of illicit service providers are turning to cryptocurrencies for their transactions. Irdeto’s intelligence-led investigations have revealed a clear upward trend in this area. According to their findings, in 2022, approximately 13% of payments made to criminal entities for illicit services were conducted using cryptocurrencies. By the end of 2024, this figure had reportedly risen to 19%. This growing reliance on crypto by cybercriminals underscores the need for proactive measures and collaboration between the cryptocurrency industry and security firms. The perceived anonymity and borderless nature of some crypto transactions have made them an attractive option for those looking to evade traditional financial controls.

The collaboration between Coinbase and Irdeto brings together complementary strengths to address this complex issue. Irdeto has extensive experience in digital security, content protection, and anti-piracy operations for the media and entertainment industry. They specialize in identifying and disrupting illegal streaming services and other forms of digital piracy that affect content creators and distributors like MultiChoice. Coinbase, as one of the world’s largest cryptocurrency exchanges, possesses sophisticated blockchain analytics capabilities and insights into crypto transaction flows. Their role in the partnership will involve receiving investigative reports from Irdeto, using this information to identify and take appropriate action against accounts or activities on its platform that are linked to these illegal operations, and enhancing its own systems for detecting and preventing the misuse of its platform.

This partnership is a notable example of the cryptocurrency industry taking steps to address concerns about the illicit use of digital assets. By working with established security firms like Irdeto, crypto platforms can enhance their efforts to maintain a compliant and safe environment for their users. Such initiatives are crucial for building trust and legitimacy within the broader financial system and among regulators. The fight against crypto-fueled piracy and cybercrime is an ongoing challenge. This collaboration aims to make it more difficult for criminals to profit from their illegal activities using cryptocurrencies. It also sends a message that the crypto industry is willing to engage proactively with security experts and law enforcement to combat illicit finance. The success of this partnership could serve as a model for further collaborations aimed at safeguarding the integrity of both the digital content ecosystem and the cryptocurrency space.