Crypto Crime

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tdtwedt
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Crypto Crime

Postby tdtwedt » Fri Feb 18, 2022

FBI Launches New Virtual Asset Unit Focuses on Blockchain and Seizure of Virtual Assets Including Cryptocurrencies

The Department of Justice on Thursday appointed Eun Young Choi to serve as the first Director of the National Cryptocurrency Enforcement Team (NCET).

The NCET was established to ensure the department meets the challenge posed by the criminal misuse of cryptocurrencies and digital assets, and comprises attorneys from across the department, including prosecutors with backgrounds in cryptocurrency, cybercrime, money laundering, and forfeiture, according to the news release.


https://www.thegatewaypundit.com/2022/0 ... urrencies/
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Re: Crypto Crime

Postby tdtwedt » Sat Feb 19, 2022

Influencers beware: promoting the wrong crypto could mean facing a class-action lawsuit

An attorney for the plaintiffs, David Silver, tweeted after the ruling that “the law is clear: promote on social media, you can and will be held liable.”


https://www.msn.com/en-us/money/other/i ... ar-AAU3lVC
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Re: Crypto Crime

Postby tdtwedt » Sun Feb 20, 2022

A Hacker Is Actively Stealing High-Value NFTs From OpenSea Users

A hacker or hackers are actively stealing and flipping high-valued NFTs from users on OpenSea, the world’s largest NFT exchange, causing chaos and confusion in the broader NFT community.

Blockchain records show that the attacker was able to transfer numerous NFTs from different users to their address for free. Stolen NFTs included examples from the Bored Ape Yacht Club, Mutant Ape Yacht Club, and several other popular collections. The attacker has already sold some of the NFTs, for example, this NFT from the Azuki collection for 13.4 ETH ($36,380). The attacker's wallet currently contains more than 600 ETH worth nearly $2 million.


https://www.vice.com/en/article/xgd53z/ ... on-opensea
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Re: Crypto Crime

Postby tdtwedt » Fri Feb 25, 2022

Founders Of Cryptocurrency Exchange Plead Guilty To Bank Secrecy Act Violations

Damian Williams, the United States Attorney for the Southern District of New York, announced that Arthur Hayes and BENJAMIN DELO, founders and executives of purportedly “off-shore” cryptocurrency derivatives exchange the Bitcoin Mercantile Exchange or “BitMEX,” pled guilty today to violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX. Under the terms of their respective plea agreements, HAYES and DELO each agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense. HAYES and DELO pled guilty today before U.S. District Judge John G. Koeltl.


https://www.justice.gov/usao-sdny/pr/fo ... violations
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Re: Crypto Crime

Postby tdtwedt » Sat Feb 26, 2022

BitConnect Founder Indicted in Global $2.4 Billion Cryptocurrency Scheme

A federal grand jury in San Diego returned an indictment today charging the founder of BitConnect with orchestrating a global Ponzi scheme. BitConnect is an alleged fraudulent cryptocurrency investment platform that reached a peak market capitalization of $3.4 billion.

According to court documents, Satish Kumbhani, 36, of Hemal, India, the founder of BitConnect, misled investors about BitConnect’s “Lending Program.” Under this program, Kumbhani and his co-conspirators touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. As alleged in the indictment, however, BitConnect operated as a Ponzi scheme by paying earlier BitConnect investors with money from later investors. In total, Kumbhani and his co-conspirators obtained approximately $2.4 billion from investors.

The indictment further alleges that, after operating for approximately one year, Kumbhani abruptly shut down the Lending Program. Kumbhani then directed his network of promoters to fraudulently manipulate and prop up the price of BitConnect’s digital currency, a commodity known as BitConnect Coin (BCC), to create the false appearance of legitimate market demand for BCC. Kumbhani and his co-conspirators also concealed the location and control of the fraud proceeds obtained from investors by commingling, cycling, and exchanging the funds through BitConnect’s cluster of cryptocurrency wallets and various internationally based cryptocurrency exchanges.


https://www.justice.gov/opa/pr/bitconne ... ncy-scheme
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Re: Crypto Crime

Postby IdahoCopper » Sat Feb 26, 2022

How about posting about crimes where US dollars were used, instead of only posting about crypto?

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Re: Crypto Crime

Postby tdtwedt » Tue Mar 01, 2022

U.S. SEC's enforcement cop says crypto company amnesty is not on the table

The U.S. Securities and Exchange Commission (SEC) will not offer amnesty to cryptocurrency companies that self-report violations of securities laws, although they may face smaller penalties, the agency's enforcement director told Reuters.

Gurbir Grewal's first remarks on crypto in an interview provide greater clarity as to how cryptocurrency companies can expect to be treated under the SEC's new Democratic leadership. The industry has complained that the agency has left it in the dark about how to comply with U.S. rules.

His comments, though, will disappoint some in the industry who had hoped the SEC would encourage companies flouting its rules to voluntarily come under its oversight by giving them a one-time free pass.


https://www.nasdaq.com/articles/exclusi ... -the-table
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Re: Crypto Crime

Postby tdtwedt » Thu Mar 03, 2022

Attorney General Merrick B. Garland Announces Launch of Task Force KleptoCapture

The Task Force will be fully empowered to use the most cutting-edge investigative techniques — including data analytics, cryptocurrency tracing, foreign intelligence sources, and information from financial regulators and private sector partners — to identify sanctions evasion and related criminal misconduct.


https://www.justice.gov/opa/pr/attorney ... ptocapture
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Re: Crypto Crime

Postby tdtwedt » Sat Mar 05, 2022

Crypto platforms that don't register with the SEC do business 'outside the law': Gensler

Gensler is currently urging the biggest cryptocurrency exchanges — like Coinbase (COIN), BlockFi, and others — to voluntarily register with the SEC. But he says “the law is clear” on that issue. “It's a question of whether they're registered or they're operating outside of the law and I'll leave it at that,” he said.


https://finance.yahoo.com/news/crypto-p ... 15740.html
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Re: Crypto Crime

Postby tdtwedt » Tue Mar 08, 2022

Biden to Sign Executive Order to Regulate Cryptocurrency after Assault on Dollar

The executive order will reportedly help coordinate the role of agencies such as the Securities and Exchange Commission and Commodity Futures Trading Commission on cryptocurrency. Industry actors have long complained that guidance from the SEC and other agencies has been unhelpful as they seek to be compliant with U.S. law.


https://www.thegatewaypundit.com/2022/0 ... lt-dollar/
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Re: Crypto Crime

Postby tdtwedt » Wed Mar 09, 2022

John Barksdale Charged With Cryptocurrency Securities Fraud In Connection With Sale Of Ormeus Coin

The charges arise from a scheme perpetrated by BARKSDALE to sell a cryptocurrency token called Ormeus Coin (asset symbol “ORME”) through false representations regarding the size, value, and purported profitability of Ormeus Coin’s cryptocurrency mining assets. In particular, through a series of marketing materials designed to sell Ormeus Coin, BARKSDALE and others falsely represented, among other things, that Ormeus Coin was secured by a $250 million cryptocurrency mining operation, which would have been one of the largest such operations in the world, and that its mining revenues exceeded $5 million on a monthly basis.

U.S. Attorney Damian Williams said: “As alleged, John Barksdale perpetrated a scheme to sell the cryptocurrency Ormeus Coin to investors around the world through a web of lies, which he spread through in-person roadshows, social media, and even a jumbotron in Times Square.


https://www.justice.gov/usao-sdny/pr/jo ... rmeus-coin
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Re: Crypto Crime

Postby tdtwedt » Thu Mar 10, 2022

Third Founder Of Cryptocurrency Exchange Pleads Guilty To Bank Secrecy Act Violations

Damian Williams, the United States Attorney for the Southern District of New York, announced that SAMUEL REED, one of three co-founders and a high-ranking executive of purportedly “off-shore” cryptocurrency derivatives exchange the Bitcoin Mercantile Exchange or “BitMEX,” pled guilty today to violating the Bank Secrecy Act (the “BSA”) by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at BitMEX. Under the terms of his plea agreement, REED agreed to separately pay a $10 million criminal fine representing pecuniary gain derived from the offense. REED pled guilty today before Chief U.S. District Judge Laura T. Swain, and will be sentenced by U.S. District Judge John G. Koeltl. The other two founders of BitMEX, Arthur Hayes and Benjamin Delo, previously pled guilty to the same offense in February 2022.


https://www.justice.gov/usao-sdny/pr/th ... violations
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Re: Crypto Crime

Postby tdtwedt » Thu Mar 10, 2022

CFTC Charges Four Operators for $44 Million Bitcoin Ponzi and Misappropriation Schemes

The Commodity Futures Trading Commission today filed a federal civil enforcement action in the U.S. District Court for the Eastern District of New York charging Dwayne Golden of Florida, Jatin Patel of India, Marquis Egerton of North Carolina, and Gregory Aggesen of New York with fraud for operating Ponzi schemes involving bitcoin, for fraudulently soliciting more than $44 million of investments, and misappropriating millions of dollars.

“This case illustrates how fraudsters never tire of devising schemes to separate people from their hard-earned money, and digital asset frauds are no exception,” said Acting Director of Enforcement Vincent McGonagle.


https://www.cftc.gov/PressRoom/PressReleases/8498-22
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Re: Crypto Crime

Postby tdtwedt » Fri Mar 11, 2022

Class Action Suit Alleges Massive Scheme to Cheat Crypto Currency Investors Out of Billions

Cryptocurrency investors filed a 251-page federal class action complaint today against key industry insiders alleging a fraud that ranks among the biggest thefts of any kind in world history.

Prominent industry insider, Anthony Diiorio, cofounder of the Ethereum blockchain network, conspired with the promoters of numerous cryptocurrencies like EOS, Civic, and HelbizCoin to rip-off the public using dummy purchases and “pump and dump” tactics. The defendants acted through anonymous blockchain accounts to conceal their identities and to launder the proceeds of their fraud. Diiorio repeated the scheme during numerous coin sales, for years, without anyone uncovering it until Diiorio was investigated due to his connection to the HelbizCoin fraud.

“The dirty secret of the crypto industry is that there is no consumer protection on blockchains,” said Mike Kanovitz of Loevy & Loevy Attorneys at Law, who is representing the plaintiffs. “The lack of consumer protection is so widespread and fundamental that industry leaders just accept it as unavoidable instead of working on real solutions. Meanwhile, people are getting hurt every day by bad actors and unsafe cryptocurrency products.”


https://www.loevy.com/blog/class-action ... -billions/
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Re: Crypto Crime

Postby tdtwedt » Wed Mar 16, 2022

UK's Law Enforcement Agency Calls for Regulation of Crypto Mixing Tech

The U.K.'s National Crime Agency (NCA) has called for the regulation of crypto mixing technology that can disguise transactions which would otherwise been traceable on the blockchain, according to a report by the Financial Times.

"They can be used to provide a 'layering' service, churning criminal cash obscuring its origins and audit trail, similar to how a cash business might be used by criminals to legitimize cash through the banking system," Gary Cathcart, the NCA's head of financial investigation, said in an interview with FT published on Tuesday.


https://www.yahoo.com/now/uks-law-enfor ... 10749.html
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Re: Crypto Crime

Postby IdahoCopper » Fri Mar 18, 2022

U.S. TREASURY CONFIRMS WE CAN REMOVE 'ILLICIT ACTIVITY' FROM BITCOIN FUD DICE
With the U.S. Treasury recently indicating that bitcoin and altcoins aren’t used for significant illicit activity, it’s time to change the narrative.

https://bitcoinmagazine.com/culture/us- ... ot-illicit

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Re: Crypto Crime

Postby tdtwedt » Fri Mar 18, 2022

Coinbase Faces $5M Class Action Lawsuit Alleging Dogecoin And 78 Other Crypto Tokens Are 'Unlicensed Securities'

The three plaintiffs named several popular large-cap cryptocurrencies in its list of alleged unregistered securities including Cardano (CRYPTO: ADA), Polkadot (CRYPTO: DOT), Decentraland (CRYPTO: MANA), Shiba Inu (CRYPTO: SHIB), and Dogecoin (CRYPTO: DOGE).

The Coinbase users who filed the suit claimed the platform is in violation of federal and state law by selling these assets and should compensate all users who suffered losses while trading them.


https://www.msn.com/en-us/money/savinga ... ar-AAVe0Bl
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Re: Crypto Crime

Postby tdtwedt » Mon Mar 21, 2022

The Man Behind Ethereum Is Worried About Crypto's Future

But even as crypto has soared in value and volume, Buterin has watched the world he created evolve with a mixture of pride and dread. Ethereum has made a handful of white men unfathomably rich, pumped pollutants into the air, and emerged as a vehicle for tax evasion, money laundering, and mind-boggling scams.


https://time.com/6158182/vitalik-buteri ... m-profile/
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Re: Crypto Crime

Postby tdtwedt » Tue Mar 22, 2022

The Eight Congressmen Subverting the SEC’s Crypto Investigation

Of course, given that the cryptocurrency sector has been rife with examples of firms defrauding investors, concealing transactions, and potentially even evading sanctions, as well as the complexity and opacity of the broader cryptocurrency sector, it would make plenty of sense for the SEC to cast a wide net in its information-gathering.


https://prospect.org/power/eight-congre ... stigation/
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Re: Crypto Crime

Postby tdtwedt » Wed Mar 23, 2022

UK watchdog puts 50 crypto companies on notice over ‘misleading’ ads

Over 50 cryptocurrency companies have been sent enforcement notices by the U.K.’s advertising watchdog as part of a regulatory crackdown on promotions in the industry.

The Advertising Standards Authority said Tuesday it has told the firms to review their ads and make sure they are in compliance with the rules. It also threatened firms with targeted sanctions if “problem ads” persist after May 2.

This would include reporting non-compliant advertisers to another regulator, the Financial Conduct Authority.

In its notice to the companies, the regulator gave guidance stating advertisers must make clear digital assets are unregulated in the U.K.


https://www.cnbc.com/2022/03/22/uk-watc ... g-ads.html
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