Binance executives were intercepted by Nigerian officials and their passports seized after they landed in the country.
Access to Binance’s Law Enforcement Request Panel Is for Sale for $10K
Binance uses a third-party service called Kodex to validate law enforcement requests.
Tether Freezes $225M Linked to Human Trafficking Syndicate Amid DOJ Investigation
Stablecoin issuer Tether has frozen $225 million worth of its stablecoin following an investigation by the U.S. Department of Justice (DOJ) into an international human trafficking syndicate in Southeast Asia.
Bitfinex users fall for ‘minor’ phishing attack after employee gets hacked
Bitfinex stressed its systems weren’t compromised and no customer funds were lost.
Australian crypto scams increased by over 162% with nearly $150M lost
While the total figures are “alarming,” crypto scams accounted for 7.1% of the total $2.08 billion stolen from Australians in 2022.
Indian Crypto Exchange BitBNS Says Law Enforcement Advised Against Making Hack Public
Indian Crypto Exchange BitBNS didn’t make a hack worth $7.5 Million on February 1, 2022 public to its users and instead told them it was “system maintenance” because “law enforcement” authorities advised them against it.
Crypto exchange Kraken freezes accounts related to FTX and Alameda
Kraken said it froze account access to certain funds “we suspect to be associated with ‘fraud, negligence or misconduct’ related to FTX.”
Tornado Cash left a void, time will tell what fills it — Chainalysis chief scientist
There’s a hole to be filled where Tornado Cash once was, and “junior mixers” are vying for position in the wake of the mixers sanction and ban by the U.S. Treasury.
Binance identifies KyberSwap hack suspects, involves law enforcement
Based on an independent investigation, Binance’s security team identified two suspects that may be responsible for orchestrating the virtual heist of $265,000 on KyberSwap.
Russian security agency wants exchanges to share data with crime investigators
The measure comes along with a proposed ban on advertising of non-licensed crypto services.
The FBI Will Launch A Ransomware-Focused Unit To Monitor Cryptocurrencies
Both the FBI and the U.S. Justice Department are making moves in the crypto space. Recent high-profile victories offered the necessary incentive for both organizations to take action. Reuters reports that the Justice Department hired “a seasoned computer crimes prosecutor” as their new crypto zar. For their part, the “FBI is launching a unit for blockchain analysis and virtual asset seizure.”
Both moves are a clear indication of the U.S.’s newfound attitude towards cryptocurrencies.
The Justice Department’s New Crypto Czar
The U.S. Justice Department’s National Cryptocurrency Enforcement Team (NCET) has a new leader. The chosen one is Ms. Eun Young Choi, “a prosecutor who led the case against a Russian hacker who helped steal information about more than 80 million JPMorgan & Chase Co customers.”
In the Justice Department’s press release, they quote Director Choi:
“The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department.”
At Young Choi’s announcement, Reuter quotes Deputy Attorney General Lisa Monaco warning criminals of their organization’s aims:
“We are issuing a clear warning to criminals who use cryptocurrency to fuel their schemes. We also call on all companies dealing with cryptocurrency – we need you to root out cryptocurrency abuses. To those who do not, we will hold you accountable where we can.”
Their organization is going to move fast and break things, according to Monaco:
“Moving forward, prosecutors, agents, and analysts will now assess – at each stage of a cyber investigation – whether to use disruptive actions against cyber threats, even if they might otherwise tip the cybercriminals off and jeopardize the potential for charges and apprehension.”
BTC price chart for 02/18/2022 on Easymarkets | Source: BTC/USD on TradingView.com
Why Is The FBI Creating On A Crypto-Focused Unit Right Now?
Remember those high-profile victories we mentioned? Well, of course, the recent capture of the alleged Bitfinex hackers is one of those. “The creation of the FBI’s “virtual asset exploitation” unit comes after the Justice Department’s largest-ever financial seizure earlier this month,” said Reuters. When NewsBTC covered the story, to summarize the situation, we used the unanswered questions:
“Could this tech entrepreneur and this writer/ rapper have hacked a cryptocurrency exchange? Or are they just the money launderers for a bigger operation? And, did they really save the private keys to billions in BTC on the cloud? Or were they set up? Is law enforcement playing tricks on the public or are they the heroes of the day?”
The other high-profile victory is the Colonial Pipeline hack. According to Reuters, the FBI is “ratcheting up their scrutiny of the crypto industry in the wake of a series of high-profile cyberattacks last year on the largest U.S. fuel pipeline network and the world’s largest beef supplier.” When law enforcement recovered millions in BTC from the Colonial Pipeline ransomware payout, NewsBTC summarized the situation like this:
“According to the report, Colonial Pipeline controls around 45% of the fuel for the U.S. East Coast. Its CEO Joseph Blount was forced to pay the ransom enforced by the hacker on a control room’s main computer. Estimated in around $4.4 million paid in 63.7 Bitcoin.
The operation was carried out by a special ransomware task force created by the U.S. Federal Government. This type of attack has become regular. There is a growing concern in the public and the authorities.”
That growing concern ended up creating a new crypto czar and a new FBI unit focused on the problem.
Conclusions And Market Considerations
There’s a growing concern about how will these high-profile seizes affect the market. Will law enforcement just give the BTC to Bitfinex? Or, will they auction it instead? Will the U.S. absorb it as Bitcoin in their balance sheet? How will law enforcement play it? And what will happen if those coins reach the market in any of those ways?
The Bitfinex hack could become a landmark case and point in the direction that the government will go with all of this. Don’t worry, for you, NewsBTC will keep an eye out for every little development.
Featured Image by Marija Zaric on Unsplash | Charts by TradingView
Ukraine’s state security shuts down illegal crypto exchanges
Ukrainian authorities say the crypto exchanges were involved in money laundering and other illicit financial activities.
Law Enforcement Agencies Are Missing Forked Cryptos in Criminal Seizures: Research
Blockchain analytics company Coinfirm said authorities are “ignoring” criminals’ stockpiles of cryptocurrencies that forked from bitcoin.
The DOJ Wants to Hire a Crypto Crime Attorney Adviser
The Department of Justice wants to hire an attorney adviser to specialize in cryptocurrency, dark web and hacking criminal cases.
Ukraine Arrests Hacker Accused of Selling Personal Data, Crypto Wallet Info
Ukrainian police have arrested a hacker who allegedly sold 773 million email addresses, along with passwords, bank PIN codes and cryptocurrency wallets.
ICE’s New Intel Program Used in Every Homeland Security Crypto Investigation
ICE’s recently-revealed “Cryptocurrency Intelligence Program” is deployed in all crypto-facing Homeland Security investigations, says the agent whose unit built the tool.
Law Enforcement Data Requests Rose By Almost 50% in 2019, Says Kraken
The exchange’s CEO said the cost of responding to law enforcement requests for user data was over $1 million.
Ethereum Developer Virgil Griffith Has Been Released From Jail Pending Trial
Virgil Griffith has been released from jail pending trial, attorney Brian Klein tells CoinDesk.
Blockchain Sleuthing Firm Chainalysis Slashes 20% of Workforce
Chainalysis laid off 39 employees Thursday citing the need for a “path to profitability.”
Russia Wants to Be Able to Seize Cybercriminals’ Bitcoin
Russian regulators will begin developing proposals for legislation allowing confiscation of crypto assets seized in crime investigations.