Igbara perpetrated multiple fraud schemes and scammed investors of at least $8 million.
Binance founder should be jailed for 36 months, US prosecutors say
Binance founder and former CEO Changpeng Zhao is expected to be sentenced on April 30 after pleading guilty to money laundering in November 2023.
EU Lawmakers Vote for Three Major Texts in Anti-Money Laundering Package That Also Targets Crypto
The broad package sets up an anti-money laundering authority, a single rulebook for all 27 member states, and tough rules for crypto service providers.
Senator Warren Hits Out at Crypto Again, Says Industry Needs to Follow the Same Rules as TradFi
Warren reiterated her disdain for the industry in an interview.
Crypto Money Laundering Plummets By 29% In Latest Chainalysis Findings
According to a recent report published by crypto analytics firm Chainalysis, money laundering involving crypto assets has experienced a notable decline compared to the previous year. However, the report highlights that illicit actors have started adapting their tactics to evade detection and further obscure the movement of illicit funds.
Evolving Tactics In Crypto Money Laundering
According to the report, illicit addresses sent approximately $22.2 billion worth of cryptocurrency to various services in 2023, a significant decrease from the $31.5 billion sent in 2022.
While part of this decline can be attributed to an overall decrease in legitimate and illicit crypto transaction volume, the report reveals that money laundering activity witnessed a steeper drop of 29.5%, compared to the 14.9% decrease in total transaction volume.
Centralized exchanges remain the primary destination for funds originating from illicit addresses, with this trend remaining relatively stable over the past five years. However, the report indicates a shift in the distribution of illicit funds, with a growing share being directed towards decentralized finance (DeFi) protocols.
Chainalysis suggests that this can be attributed to DeFi’s overall expansion during the same period, although the transparent nature of DeFi platforms makes them less favorable for obfuscating fund movements.
While the breakdown of service types used for money laundering in 2023 resembled that of the previous year, there were noticeable changes in specific types of crypto criminals’ money laundering practices.
The report highlights a significant increase in the volume of funds sent to cross-chain bridges from addresses associated with stolen funds, indicating a shift towards utilizing bridge protocols for money laundering purposes. Additionally, there was a substantial rise in funds sent from ransomware attacks to gambling platforms and bridges, showcasing the “adaptability and resourcefulness” of cybercriminals.
North Korean Hackers And Cross-Chain Bridges
The concentration of money laundering at fiat off-ramps, where criminals convert their crypto into cash, remains a significant concern. While thousands of off-ramping services operate, most money laundering activity is concentrated in a few services.
In 2023, 71.7% of illicit funds sent to off-ramping services went to just five services, a slight increase from 68.7% in 2022. The report also reveals an increase in deposit addresses receiving large sums of illicit cryptocurrency, indicating a more diversified approach by criminals to evade detection and mitigate the impact of frozen accounts.
Furthermore, the report highlights the changing tactics of “sophisticated” crypto criminals, particularly in the case of North Korean-affiliated hacking groups like Lazarus Group.
According to Chainalysis, these actors have demonstrated an ability to adapt their money laundering strategies in response to law enforcement actions. The report cites the shutdown of mixer services, such as Sinbad, and the subsequent rise of replacements like YoMix, which has become a preferred mixer for North Korea-affiliated hackers.
Moreover, cross-chain bridges have seen substantial growth in money laundering activities, with illicit actors leveraging these protocols to move funds between blockchains. North Korean hackers, in particular, have been prominent users of bridge protocols for money laundering purposes.
Ultimately, the report emphasizes the need for increased diligence and understanding of “interconnectedness” in fighting crypto crime by targeting money laundering infrastructure.
Featured image from Shutterstock, chart from TradingView.com
Crypto Money Laundering Dropped 30% Last Year, Chainalysis Says
Illicit addresses sent $22.2 billion in cryptocurrency to services in 2023, a decrease from $31.5 billion in 2022, and centralized exchanges remain the primary destination.
Man Behind Defunct BTC-e Exchange Once Popular with Criminals Faces U.S. Charges
One of the men behind BTC-e, a now-defunct crypto exchange once popular with cybercriminals and money launderers, has been arrested and charged in the U.S., the Department of Justice (DOJ) said Thursday.
UK Police Seize Nearly $1.8B of Bitcoin From Investment Fraud in China: FT
A London court heard of the seizure Tuesday as part of the trial of Jian Wen, who is accused of laundering bitcoin on behalf of her former employer, Yadi Zhang, FT reported.
Crypto for Advisors: Bitcoin Myth Busting
Kunal Bhasin, co-leader of KPMG Canada’s crypto asset and blockchain practice, debunks many of the bitcoin myths in the final Crypto for Advisors issue of the year.
Watchdog group doubles down on Circle-Tron money laundering claims
The Campaign for Accountability released a new open letter criticizing Circle’s Cross Chain Transfer Protocol.
Alleged Crypto Investment Scam Worth $80M Sees Four People Charged With Money Laundering in U.S.
The four allegedly obtained the money through so-called pig-butchering and other fraudulent schemes.
Alleged Crypto Investment Scam Worth $80M Sees Four People Charged With Money Laundering in U.S.
The four allegedly obtained the money through so-called pig-butchering and other fraudulent schemes.
Alleged Crypto Investment Scam Worth $80M Sees Four People Charged With Money Laundering in U.S.
The four allegedly obtained the money through so-called pig-butchering and other fraudulent schemes.
Crypto is for criminals? JPMorgan has been fined $39B and has its own token
Crypto proponents on X wasted no time pointing out the hypocrisy of JP Morgan CEO Jamie Dimon’s recent remarks to the United States Banking Committee about Bitcoin and crypto.
Binance onboarded millions into finance but forgot the paperwork — Columbia professor
Binance settlement highlights banks’ and crypto firms’ ambiguous treatment, says Columbia Business School adjunct professor Omid Malekan.
Binance Settlements Could End Death-Spiral Fears – And Might Be Good News
The crypto exchange Binance’s expensive deal with U.S. prosecutors this week bears harsh consequences, but could mean a positive outlook for the company in the long term.
Binance Settlements Could End Death-Spiral Fears – And Might Be Good News
The crypto exchange Binance’s expensive deal with U.S. prosecutors this week bears harsh consequences, but could mean a positive outlook for the company in the long term.
BNB pops after report that DOJ wants $4B settlement with Binance
BNB hit its highest price since June after Bloomberg reported the Justice Department wanted $4 billion from Binance to end its probe into the exchange.
US Justice Dept. is reportedly ready to settle with Binance for $4 billion
According to a report, an agreement to settle Justice Department charges against the company may be settled by the end of the month.
Mastercard combats crypto fraud with latest AI integration
Mastercard announced it will integrate a new AI tool to detect and prevent fraud routed through cryptocurrency exchanges.