Introduction

Monero (XMR), a privacy-focused cryptocurrency, has gained significant popularity due to its emphasis on anonymity and decentralization. However, its reputation has been marred by its association with illicit activities, particularly the use of botnets for mining. Botnets, networks of compromised devices, are frequently exploited by cybercriminals to mine Monero without the knowledge or consent of device owners. This report examines the extent to which Monero relies on botnets, the implications of this reliance, and whether Monero could sustain itself without such illicit activities. By analyzing data, expert opinions, and trends, this report provides a comprehensive overview of the issue.

The Prevalence of Botnets in Monero Mining

Botnets and Their Role in Cryptojacking

Botnets have become a significant tool for cybercriminals to mine Monero due to its CPU-friendly mining algorithm, RandomX, which allows mining on commodity hardware. Unlike Bitcoin, which requires specialized hardware (ASICs), Monero can be mined using standard CPUs and GPUs, making it an attractive target for botnet operators.

The Prometei botnet, for instance, has been highlighted as a sophisticated example of Monero mining malware. This botnet infects systems globally, turning them into "zombie" terminals that collectively mine Monero. According to Cisco Talos researchers, the Prometei botnet has infected approximately 10,000 systems worldwide, leveraging advanced techniques like domain-generating algorithms (DGA) and bundled Apache web servers to evade detection.

Financial Incentives for Botnet Operators

The financial incentives for using botnets to mine Monero are substantial. While an individual consumer PC might only generate a few dollars worth of Monero per month, a botnet comprising hundreds of thousands of devices can yield significant profits. John Bambenek, a principal threat hunter at Netenrich, noted that the likelihood of prosecution for such activities is low, making cryptojacking a relatively risk-free endeavor for cybercriminals.

Extent of Monero Mined by Botnets

Despite the prevalence of botnets, their overall contribution to Monero's supply is relatively small. A study conducted by researchers from Charles III University of Madrid and King’s College London found that only 4.32% of all Monero in circulation was mined using botnets and other malware over a 12-year period (2007–2018). This study analyzed over 4.4 million malware samples, identifying one million strains that mined cryptocurrency on infected hosts.

Implications of Botnet-Driven Mining

Impact on Victims

The use of botnets for Monero mining has severe consequences for the victims. Infected devices experience degraded performance, higher energy consumption, and potential overheating. For businesses, the impact can be even more severe, as compromised servers may lead to operational disruptions and increased costs.

Security Concerns

Botnet-driven mining also poses broader cybersecurity risks. Malware used for cryptojacking often includes additional functionalities, such as credential theft or the deployment of web shells, which can be used for further exploitation. Security teams are advised to focus on detecting these secondary threats rather than solely concentrating on mining activities.

Ethical and Reputational Issues for Monero

The association of Monero with illicit activities, including botnet-driven mining, has tarnished its reputation. While Monero's privacy features are a legitimate tool for financial privacy, they have also made it a preferred cryptocurrency for cybercriminals. This duality presents a challenge for Monero's community and developers, who must balance privacy with ethical considerations.

Can Monero Exist Without Botnets?

Legitimate Mining Activities

Monero's design allows for decentralized and accessible mining, enabling individuals to mine using personal computers. This democratization of mining is a core principle of Monero and distinguishes it from cryptocurrencies like Bitcoin. The majority of Monero's supply is mined through legitimate means, as evidenced by the relatively small proportion (4.32%) linked to botnets (Blockmanity).

Community and Developer Efforts

The Monero community has taken steps to combat illicit mining activities. For example, the adoption of the RandomX algorithm in 2019 was aimed at reducing the efficiency of ASICs and leveling the playing field for individual miners. Additionally, Monero developers actively monitor and address vulnerabilities that could be exploited by botnets.

Viability Without Botnets

Given that botnet-driven mining accounts for a small fraction of Monero's overall supply, it is evident that Monero can exist without such activities. The cryptocurrency's value and adoption are primarily driven by its unique features, such as privacy and fungibility, rather than its association with botnets. However, the ongoing prevalence of cryptojacking highlights the need for continued vigilance and proactive measures to mitigate its impact.

Conclusion

Monero's association with botnets and cryptojacking is a significant issue, but it does not define the cryptocurrency's existence or viability. While botnets have exploited Monero's CPU-friendly mining algorithm for illicit gains, their contribution to the overall supply is relatively minor. The Monero community and developers have demonstrated a commitment to addressing these challenges, ensuring that legitimate mining activities remain the cornerstone of the cryptocurrency's ecosystem.

Monero's future depends on its ability to maintain its core principles of privacy and decentralization while addressing the ethical and security concerns associated with its misuse. By fostering transparency, collaboration, and innovation, Monero can continue to thrive as a legitimate and valuable cryptocurrency.