Crypto Crime

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Munkish
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Re: Crypto Crime

Postby Munkish » Wed May 11, 2022

tdtwedt wrote:SEC’s Gensler Says Crypto Exchanges Trading Against Clients

Speaking in an interview with Bloomberg News, Gensler said he’s concerned that crypto exchanges aren’t putting up proper walls between different parts of their businesses such as custody, market-making, and offering a trading venue. He said the “commingling” of services may not be in clients’ best interests.

“Crypto’s got a lot of those challenges-- of platforms trading ahead of their customers,” Gensler said. “In fact, they’re trading against their customers often because they’re market-marking against their customers.”

The securities regulator also raised issues with stablecoins, digital assets that are typically pegged to the dollar or another fiat currency. The three largest stablecoins -- Tether, USD Coin, and Binance USD -- are all affiliated with exchanges, Gensler said in the interview.

“I don’t think that’s a coincidence,” he said. “Each one of the three big ones were founded by the trading platforms to facilitate trading on those platforms and potentially avoid AML and KYC,” he added, referring to anti-money laundering and know-your-customer controls.


https://finance.yahoo.com/news/sec-chie ... 37972.html


What about cutting off the buying of certain stocks (GameStop comes to mind) in order to make your clients' positions in those stocks tank and help your hedge fund friends? That was done by many stock trading platforms like ETrade and others.

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Re: Crypto Crime

Postby tdtwedt » Thu May 12, 2022

There are more ways than one to skin a cat.

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Re: Crypto Crime

Postby tdtwedt » Fri May 13, 2022

There are more ways than one to skin a cat.

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Re: Crypto Crime

Postby tdtwedt » Sat May 14, 2022

The SEC has already sued Terraform Labs. It has every reason to investigate UST, lawyers say

The Securities and Exchange Commission is likely already investigating what happened to UST over the past week, two former SEC lawyers tell The Block.

“The SEC is already on the scene as they are investigating the Mirror protocol,” said Philip Moustakis, who left the SEC’s enforcement division for law firm Seward & Kissel in 2019, in conversation with The Block.


https://www.theblockcrypto.com/amp/post ... awyers-say
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Sun May 15, 2022

Coffeezilla, the YouTuber Exposing Crypto Scams

So far, there have been relatively few prosecutions in the world of crypto. “The lesson, if you’re a cynical person, is to commit fraud on the blockchain,” Findeisen told me. I asked him whether he considered his videos to be in the genre of white-collar true crime. “I guess I always think of true crime as: the guy gets locked up at the end,” he said. “And a lot of my stories feel incomplete. Because the reporting happens, right? And then they just continue doing what they do.”


https://www.newyorker.com/news/letter-f ... ypto-scams
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Tue May 17, 2022

U.S. issues charges in first criminal cryptocurrency sanctions case

The Justice Department has launched its first criminal prosecution involving the alleged use of cryptocurrency to evade U.S. economic sanctions, a federal judge disclosed Friday.


https://www.washingtonpost.com/dc-md-va ... sanctions/
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Thu May 19, 2022

There are more ways than one to skin a cat.

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Re: Crypto Crime

Postby tdtwedt » Sun May 22, 2022

Crypto Might Have an Insider Trading Problem

Public data suggests that several anonymous crypto investors profited from inside knowledge of when tokens would be listed on exchanges.

Coinbase, Binance and FTX each said they had compliance policies prohibiting employees from trading on privileged information. The latter two said they reviewed the analysis and determined that the trading activity in Argus’s report didn’t violate their policies. Binance’s spokesperson also said none of the wallet addresses were linked to its employees.

Coinbase said it conducts similar analyses as part of its attempts to ensure fairness. Coinbase executives have posted a series of blogs touching on the issue of front running.


https://www.wsj.com/articles/crypto-mig ... 1653084398
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SilverDoge
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Re: Crypto Crime

Postby SilverDoge » Sun May 22, 2022

tdtwedt wrote:The SEC has already sued Terraform Labs. It has every reason to investigate UST, lawyers say

The Securities and Exchange Commission is likely already investigating what happened to UST over the past week, two former SEC lawyers tell The Block.

“The SEC is already on the scene as they are investigating the Mirror protocol,” said Philip Moustakis, who left the SEC’s enforcement division for law firm Seward & Kissel in 2019, in conversation with The Block.


https://www.theblockcrypto.com/amp/post ... awyers-say


Michael Saylor provides a good takeaway from the LUNA-UST debacle:
Gold, Silver, Bitcoin.
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Mon May 23, 2022

Lagarde Calls For Crypto Crackdown, Says They're "Based On Nothing"

European Central Bank President Christine Lagarde has taken aim at cryptocurrencies, arguing in an interview on Dutch television that they’re essentially “worth nothing” as they lack underlying assets “as an anchor to safety” while calling for them to be regulated.

In January, Lagarde called for global regulation of Bitcoin, telling Reuters in an interview at the time that the digital currency had been used for money laundering and arguing for rules that would close related loopholes.

Bitcoin “is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Lagarde told the outlet in an interview at the Reuters Next conference.


https://www.zerohedge.com/markets/lagar ... ed-nothing
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Re: Crypto Crime

Postby tdtwedt » Sat May 28, 2022

How Influencers Hype Crypto, Without Disclosing Their Financial Ties

Logan Paul had a message for his six million Twitter followers: He was “all in” on a new cryptocurrency called Dink Doink.

But by mid-July, the price of Dink Doink had plummeted to a fraction of a cent, and Mr. Paul was facing an online backlash. In his endorsements, he had failed to mention some relevant information: He and the project’s creator were friends, and they had come up with the idea for the cryptocurrency together. He had also received a large allocation of Dink Doink coins when it launched.


https://dnyuz.com/2022/05/27/how-influe ... cial-ties/
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Sun May 29, 2022

There are more ways than one to skin a cat.

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Re: Crypto Crime

Postby tdtwedt » Mon May 30, 2022

Some investors got rich before a popular stablecoin imploded, erasing $60 billion in value

Venture capital firm Pantera Capital tells CNBC their $1.7 million investment in luna turned into $170 million, while Hack VC and CMCC Global exited their luna position in December and March, respectively.


https://www.cnbc.com/2022/05/29/who-got ... apsed.html

:pop:
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Wed Jun 01, 2022

Britain plans new safeguards for stablecoins that go bust in wake of Terra’s collapse

Britain wants to make sure stablecoins don’t end up threatening the wider financial system following the collapse of controversial crypto project Terra.

The government on Tuesday proposed amending existing rules to manage the failure of stablecoin firms that may pose a “systemic” risk. The proposal is separate from previously announced plans to regulate stablecoins under laws governing electronic payments.


https://www.cnbc.com/2022/05/31/uk-plan ... lapse.html
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Thu Jun 02, 2022

Former Employee Of NFT Marketplace Charged In First Ever Digital Asset Insider Trading Scheme

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging NATHANIEL CHASTAIN, a former product manager at Ozone Networks, Inc. d/b/a OpenSea (“OpenSea”), with wire fraud and money laundering in connection with a scheme to commit insider trading in Non-Fungible Tokens, or “NFTs,” by using confidential information about what NFTs were going to be featured on OpenSea’s homepage for his personal financial gain. CHASTAIN was arrested this morning in New York, New York and will be presented today in the United States District Court for the Southern District of New York.

U.S. Attorney Damian Williams said: “NFTs might be new, but this type of criminal scheme is not. As alleged, Nathaniel Chastain betrayed OpenSea by using its confidential business information to make money for himself. Today’s charges demonstrate the commitment of this Office to stamping out insider trading – whether it occurs on the stock market or the blockchain.”


https://www.justice.gov/usao-sdny/pr/fo ... ing-scheme
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Fri Jun 03, 2022

CFTC Charges Gemini Trust Company for Making Material False or Misleading Statements and Omissions to the Commission

The Commodity Futures Trading Commission today announced it has filed a complaint in the U.S. District Court for the Southern District of New York against Gemini Trust Company, LLC (Gemini), based in New York, N.Y., for making false or misleading statements of material facts or omitting to state material facts to the CFTC in connection with the self-certification of a bitcoin futures product. The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, injunctions relating to registration and trading, and an injunction against further violations of the Commodity Exchange Act (CEA), as charged.

“Making false or misleading statements to the CFTC in connection with a futures product certification undermines the CFTC’s work to ensure the financial integrity of all transactions subject to the CEA, protect market participants, deter and prevent price manipulation, and promote responsible innovation and fair competition,” said Acting Director of Enforcement Gretchen Lowe. “This enforcement action sends a strong message that the Commission will act to safeguard the integrity of the market oversight process.”


https://www.cftc.gov/PressRoom/PressReleases/8540-22
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Sat Jun 04, 2022

Reports show scammers cashing in on crypto craze

Although it’s yet to become a mainstream payment method, reports to the FTC show it’s an alarmingly common method for scammers to get peoples’ money. Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams[1] – that’s about one out of every four dollars reported lost,[2] more than any other payment method. The median individual reported loss? A whopping $2,600. The top cryptocurrencies people said they used to pay scammers were Bitcoin (70%), Tether (10%), and Ether (9%).[3]


https://www.ftc.gov/news-events/data-vi ... ypto-craze
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Sun Jun 05, 2022

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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Tue Jun 07, 2022

How crypto giant Binance became a hub for hackers, fraudsters and drug traffickers

For five years, the world’s largest cryptocurrency exchange Binance served as a conduit for the laundering of at least $2.35 billion in illicit funds, a Reuters investigation has found.


https://www.reuters.com/investigates/sp ... irtymoney/
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tdtwedt
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Re: Crypto Crime

Postby tdtwedt » Wed Jun 08, 2022

IRA Financial Sues Gemini Over $37M Crypto Heist

IRA Financial Trust, the crypto retirement account provider that in February lost $37 million to theft, sued Gemini – its custodian and trading partner – for allegedly sloppy security protocols that it claimed led to its customers’ accounts getting drained.

In a civil suit filed Monday in Federal district court, the South Dakota-based company pointed the finger squarely at Gemini for a hack that’s left dozens of retirement savers in disarray. Some of its clients previously told CoinDesk they had picked IRA Financial largely because of its association with the Winklevoss twins’ name-brand crypto exchange.


https://www.msn.com/en-us/news/us/ira-f ... d41770f39b
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