International operation traces $55 million crypto trail of digital piracy sites

Investigators in an international operation were able to glean information about the criminal networks behind illicit streaming sites by using cryptocurrency to pay for platform services, Europol said Wednesday. 

Thirty investigators from 15 countries took part in the five-day crackdown earlier this month targeting 69 digital piracy sites, including 25 illegal streaming services whose information was referred to cryptocurrency platforms for disruption.

The operation attempted to beat the bad actors at their own game: by using cryptocurrency to buy access to pirated materials in order to gain a window into their financial infrastructure. They were able to trace about $55 million in cryptocurrency through accounts associated with the services. 

Both Coinbase and Binance were involved in the operation and took actions based on the gleaned intelligence. 

“The intelligence shows that cryptocurrency has fast become a new payment method used by digital pirates,” Mark Mulready, vice president of cyber services at Irdeto — a cybersecurity company that supported the operation — said in a press release. “This operation marks a turning point in how we combat piracy by cutting off the payment mechanisms that fuel illicit services and striking at the very heart of their business model.”

The effort, which was also supported by England’s Premier League, used blockchain intelligence from Chainalysis to map the flow of funds and piece together the players behind the operations. 

Internet protocol television (IPTV) streaming sites have proven a difficult challenge for law enforcement and the entertainment industry despite frequent busts, including one in September in which the Streameast sports streaming site was taken down and two men in Egypt were arrested.