Over the past three years, there has been a significant increase in crimes related to cryptocurrencies in Hong Kong. The number of cases during this period has almost tripled, indicating a growing trend of criminality in this area.
Finance Minister Hui Ching-yu reported that from 2021 to 2023, the Hong Kong Securities and Futures Commission (SFC) observed a substantial rise in cases involving virtual assets. The number of criminal offenses increased from 1,397 to 2,336, and then to 3,415, with the total value of the involved financial resources soaring from 824 million to 1.704 billion, and finally to 4.398 billion yuan.
Detention and Prosecution of Offenders
The police's approach to the detention and prosecution of offenders varies depending on the specific circumstances of individual cases. An example is the scandal with the cryptocurrency exchange JPEX, where 70 individuals were arrested, but no charges have been filed yet.
Decline in Trust in Cryptocurrencies after the JPEX Scandal
The JPEX exchange scandal significantly shook the confidence in cryptocurrencies in Hong Kong. Since the beginning of February this year, the SFC and the police have collaborated on sharing information with more than 100 platforms for trading virtual assets. Decisions to initiate investigations of complaints against trading platforms are dependent on a range of factors, including connections to Hong Kong and the extent of law violations.
The Central Fraud with JPEX
The fraud associated with the JPEX exchange was a key case last year. Following a liquidity crisis, the exchange suspended its operations, which led to an extensive investigation by the SFC. Police received thousands of complaints from affected clients with total losses exceeding 152 million dollars. In relation to this, eight suspects were detained, with their accounts and assets being frozen and seized amounting to 1.9 million and 5.6 million dollars, respectively.
International Collaboration and Criminal Prosecution
As part of the fraud investigations, Taiwan also engaged in the detention of key JPEX managers, indicating international efforts to combat cryptocurrency crimes.
 #scam #crime #crypto
 
 
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Alexey Pertsev, the founder of the cryptocurrency anonymization service Tornado Cash, is facing charges from Dutch authorities for alleged involvement in laundering a sum of $1.2 billion.
Alexey Pertsev Accused of Over Thirty Illegal Acts
Tornado Cash is increasingly coming under scrutiny for its association with cryptocurrency crime, rather than providing intended services. Dutch investigators have been tracking Pertsev in connection with a series of investigations, including 36 suspicious transactions. Among the most prominent was 175 ETH transferred from the Ronin Bridge crypto protocol, linked to Axie Infinity.
Other illegal transactions subject to Dutch prosecutors' charges include transactions via decentralized protocols Harmony and Nomad Bridge.
Keith Cheng, lawyer for Alexey Pertsev, stated that "prosecutors accuse Pertsev of money laundering and generally describe it, but do not specify the specific acts allegedly committed."
Dutch authorities, however, strongly accuse Pertsev of involvement in money laundering. This claim gains weight considering that Pertsev was arrested in August 2022 by the Dutch Fiscal Information and Investigation Service (FIOD) on suspicion of laundering $7 billion in cryptocurrencies.
OFAC Sanctions Against Tornado Cash
Before Pertsev's arrest, Tornado Cash was sanctioned by the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury for involvement in money laundering totaling several billion dollars. Among the organizations accused of using Tornado Cash services was the North Korean hacking group Lazarus.
Pertsev was arrested shortly after these sanctions, but was later released on bail. In August of the following year, he was arrested again, this time on charges of money laundering, with the arrest conducted by the FBI. This occurred at a time when the cryptographic detective ZachXBT reported tracking a suspicious wallet linked to Tornado Cash since the beginning of 2023.
Since his first arrest in 2022, Pertsev has vehemently denied any involvement in money laundering or violations of money laundering laws.
The trial of Alexey Pertsev is scheduled for March 26 in the Netherlands.
#crypto #crime

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Ilya Lichtenstein transformed from defendant to a government witness when he testified in court against the Bitcoin Fog mixing service, which he used to conceal the origin of funds following a hack on Bitfinex.
In court, he stated that Bitcoin Fog, popular on the darknet, was not as effective as other mixers he used for the same purpose.
Ilya Lichtenstein Assists Prosecutors in Case Against Bitcoin Fog
Ilya Lichtenstein, identified as a key player in cryptocurrency crime, is now aiding federal prosecutors in the investigation against Bitcoin Fog, a mixing service he once used to mask illegally obtained assets.
Lichtenstein, who admitted to laundering money through the $3.6 billion Bitfinex hack, testified in Washington, DC against the dark web-linked mixing service operator, as reported by Bloomberg News.
Various Mixers Used for Laundering Bitfinex Funds
Lichtenstein admitted to using various mixers, including Bitcoin Fog, to launder funds from Bitfinex but eventually moved away from it in favor of other services that better suited his needs. This move was motivated by seeking more efficient money laundering methods.
Historic Cryptocurrency Seizure Linked to Bitfinex
The U.S. Department of Justice achieved an unprecedented success in the Bitfinex case by seizing billions of dollars in cryptocurrencies.
Legal Proceedings Against Bitcoin Fog Operator
In the case of Bitcoin Fog, Roman Sterlingov, a citizen of Russia and Sweden, was arrested and charged by U.S. authorities with money laundering through his mixing service in 2021. He is now facing a legal trial.
$BTC
#BTC #crime #hack #Bitcoin

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Compete with each other to show who is the best of the best. The competition that we usually think of as fair competition when everything is done in the right way or in general is not cheating. And in the crypto world, competition within the ecosystem also occurs, where each community tries to show the existence of their project as the best project from other crypto projects.

As a material consideration in facing the competition that occurs in the crypto world, everyone certainly has the methods and tools that they usually use as well as the hand tools that are commonly used by workers according to the work they do.

Image by WorldSpectrum from Pixabay

 

Crypto X Crypto was ultimately created as a competition which is the best place for the birth of technological progress in the conditions of the development of the digital world. Creating various forms of financial systematics that adopt based on world technological advances. And basically, hope for the primacy of improving the level of the world economy in the eyes of the individual system as the final consumer over the existence of the global economy that is happening. Based on the conditions of decentralization adopted to overturn the conditions of centralization that have occurred so far.

Competing and rivaling outside of the product being ridden of course. Even if they say there is a ride, it is nothing new when it comes to conditions that play with financial existence. So talking randomly over the word outside is ridden.

Which one is the best of the best among the existence of the progress of crypto conditions since crypto was created?

Everyone will have arguments for their respective answers which they think are the best projects, of course. Without having to provide answers to my personal answers as the author of the questions raised.

Without argumentation or without mutually worsening the existence of one another. What is clear is that it is very unfortunate that this continues to happen in the form of Crypto X Crypto conditions. Because what should really be sought and created is Crypto X Bank, according to the initial creation procedure why crypto was created. Right or wrong, it is again made aware of the awareness of each party who really said and did provide their support for crypto.

Because the final result obtained, when viewed from the condition of crypto to date, is that 2/3 of the existence of crypto projects that have been present are more dominant in the existence of mere fraud which has indeed been built to be programmed on the theft of other people's funds. The systematics that are created only create a business of how to enrich oneself without caring any more about other people's economic conditions let alone the global economic conditions.

-===-

#crypto2023 #cryptocurrency #projects #crime

It is time for a federal judge to decide on the length of the sentence for Sam Bankman-Fried, the founder of FTX. Both the defense and the U.S. Department of Justice have presented their arguments, as well as statements from FTX creditors and close friends and family of Bankman-Fried.
Emotional Impact on Both Sides
Prosecution and defense representatives have now provided their perspectives on the sentence to the judge, including emotional arguments gleaned from letters from people associated with FTX and Bankman-Fried. The key question is whether Sam Bankman-Fried should be sentenced to decades in prison, as the U.S. Department of Justice desires, or if his punishment should be more lenient, as suggested by the defense.
Consideration of Evidence and Behavior
Judge Lewis Kaplan will have to consider various factors, including letters from Bankman-Fried's family, former FTX employees, and former customers. These materials offer insight into the impact of FTX's collapse on its customers and on Bankman-Fried himself.
Arguments For and Against Severe Punishment
While the defense argues that Bankman-Fried faces enormous personal consequences and should not be harshly punished, the Department of Justice emphasizes his deliberate violation of the law and doubts about his efforts to remedy the damage.
Impact on FTX Victims
In statements about the impact on victims submitted by the Department of Justice, former FTX customers describe how the exchange's collapse affected their finances and lives. These statements reveal how deeply FTX's collapse affected the lives of many people.
Technical vs. Emotional Compensation
While the defense claims that FTX customers will be fully compensated after the bankruptcy proceedings, several creditors point out that they will only receive the value of their cryptocurrencies as of November 2022, not the potential profits they could have had. The letters also state that refunding the funds will not compensate for the time when customers did not have access to them.
Judge's Decision
Among other factors likely to be considered by Judge Kaplan are Bankman-Fried's behavior during the process, testimonies, and the possibility that he could again violate the law. The defense emphasizes that the government is trying to break Bankman-Fried and warns against a punishment that is too harsh, which would abuse him even if he could theoretically commit fraud again.
Sentencing Date
Sam Bankman-Fried is scheduled to be sentenced on March 28, and the judge's decision will be a pivotal moment not only for him, but also for his family.
#SBF #trial #crime #crypto

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A 31-year-old woman finds herself at the center of a legal dispute over allegations of unauthorized manipulation of cryptocurrencies worth $4.2 million. Legal authorities are planning to charge her with fraudulent activities and suspicion of involvement in money laundering.
Discovery of Suspicious Financial Operations and Transactions
The case came to light based on a complaint from a company that alerted authorities to the unauthorized transfer of $4.2 million worth of Tether (USDT) stablecoins to cryptocurrency accounts associated with the defendant. Investigations revealed that between May and August 2022, unauthorized fund transfers occurred. The defendant allegedly transferred these funds to her digital wallets and used them for personal transactions. Among the seized items, believed to be proceeds from criminal activities, were white shoes, luxury accessories including a handbag and sunglasses, and a suspicious black Mercedes vehicle.
Potential Legal Consequences
The woman faces charges under laws against corruption and other offenses with a maximum threat of ten years in prison and high fines.
AI-Driven Fraud Alert
In response to the increasing number of scams, the Commodity Futures Trading Commission (CFTC) issued warnings against frauds using artificial intelligence (AI) to deceive people into risky investment schemes with digital currencies. The CFTC pointed out scammers' promises of enormous profits through AI-driven algorithms, with potential gains ranging from thousands of percent to one hundred percent success rate, exploiting public interest in AI technology.
Annual Report on Digital Currency Frauds
A report from Web3 Scam Sniffer highlights the growing risk of phishing attacks in the crypto sector, estimating losses of $300 million in 2023. Additionally, the United States Secret Service reported the seizure of approximately half a million dollars in digital currencies associated with investment scams in Southeast Asia.
#crypto #crime #fraud

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

 

Roman Sterlingov, the creator of the cryptocurrency mixing service Bitcoin Fog, is facing legal consequences following a recent verdict by an American court. This decision marks another blow in the US government's efforts to combat illegal activities associated with cryptocurrencies.

Sterlingov's Conviction
At the age of 35, Sterling was found guilty of several criminal offenses, including money laundering and operating an unauthorized financial service. These charges come after extensive monitoring of his activities with Bitcoin Fog, a service that allegedly allowed criminals to conceal the origin of illegally obtained funds.
However, Sterlingov and his legal team are protesting this decision and plan to appeal. Attorney Tok Ekeland has already announced that they do not intend to accept the verdict without a fight.

Evidence against Sterlingov
Evidence presented in court indicates that Bitcoin Fog laundered money for a wide range of criminal activities. Over the course of ten years of operation, the service moved more than 1.2 million bitcoins with a total value exceeding $400 million. Most of these funds came from illegal sources, including drug markets and identity theft.
Reactions and Consequences
The judge's ruling clearly points to Sterlingov's involvement in laundering large sums of money through his service. Investigators and prosecutors emphasize their commitment to prosecuting individuals who attempt to use modern technology to conceal illegal activities.
Witnesses and experts, including JW Verreta, have spoken in favor of Sterlingov and questioned the forensic methods used. They are now preparing to support his appeal against the verdict.
Asset Seizure and Expected Sentence
As a result of the court's decision, a significant amount of assets associated with Bitcoin Fog, including bitcoins and other cryptocurrencies, has been seized. Sterlingov faces hefty penalties, with a maximum possible sentence of up to 20 years in prison for the most serious charges.
Future Steps and Further Cases
This case is not an isolated incident. Other figures associated with cryptocurrency mixers, such as Roman Storm from Tornado Cash, also have to answer to the court. These events highlight the growing pressure on operators and users of services focused on anonymizing transactions in the cryptocurrency world.
$BTC
#crypto #crime #Bitcoin

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A federal police officer from Australia denies allegations of unauthorized confiscation of bitcoins from a hardware wallet at the scene of intervention and their transfer to the Binance cryptocurrency exchange.
The Australian anti-corruption agency (NACC) accused this federal police officer of emptying the Trezor hardware wallet, containing 81.62 bitcoins, at the scene of the incident. To support their claim that the bitcoins were transferred to his ownership, authorities relied on cryptocurrency tracking programs.
Raid Reveals an Empty Wallet
According to recent information, the police discovered the wallet during a drug raid at the accused's house, but waited approximately three weeks for a court order to open it. When it was finally opened, there were no bitcoins inside the wallet, as Federal Detective William Wheatley likely transferred them shortly after the raid.
At the time of the raid in 2019, the wallet was valued at $309,000, but its value now stands at approximately $4.2 million.
Tracking and Disclosure: Significance of Cryptocurrency Software
Detective Sergeant Deon Achtypis from the cybercrime unit stated that authorities initially suspected someone from a criminal syndicate might be responsible for the bitcoin theft.
Suspicion fell on Wheatley after the discovery of the wallet's recovery phrase device, a series of 12 to 24 random words used to regain access in case of wallet loss or theft.
Extensive investigation of IP addresses used to access the stolen bitcoins through cryptocurrency tracking software eventually led Achtypis to Wheatley.
Disclosure and Legal Ramifications
"I judge that a member of the police force may have been involved in cryptocurrency manipulation."
Globally, law enforcement agencies are adopting cryptocurrency tracking software to uncover illegal activities associated with digital currencies.
In August 2023, Canadian law enforcement agencies announced the initiation of using Chainalysis Reactor software to track illegal crypto transactions.
Furthermore, the development of encryption detective software leads to higher success in recovering stolen cryptocurrencies. On January 29, over $674 million was retrospectively recovered from over 600 major cryptocurrency hacks.

Defense of the Accused
Meanwhile, Wheatley maintains his innocence in the accusations of abuse of public office for personal gain, theft, and involvement in criminal activity.
He is determined to face charges related to the stolen bitcoins from the Trezor wallet, which occurred at a time when Trezor reported a security flaw affecting nearly 66,000 users.
On January 1, it was announced that Trezor detected unauthorized access to a third-party support portal on January 17, warning of potential user data compromise for those who communicated with the Trezor support team since December 2021.
 $BTC
#Bitcoin #crime #Australia #BTC
 
 
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
 
 

South Korean prosecutors have announced the identification of criminal proceeds totaling at least 410 billion won, while the amount of reimbursement reached 300 billion won. This revelation highlights the extent of criminal activity and the need for strong measures to combat it.

The prosecutors’ investigations have focused on a variety of criminal activities, including embezzlement, fraud, and money laundering. The funds that have been identified are believed to have been obtained through a range of illicit activities, such as the misappropriation of company funds or the sale of counterfeit goods.

The scale of the criminal activity uncovered by prosecutors is significant, with hundreds of billions of won being identified as criminal proceeds. This indicates the seriousness of the problem of financial crime in South Korea, and highlights the need for measures to combat it.

In addition to identifying the criminal proceeds, prosecutors have also been working to recover these funds. The amount of reimbursement reached 300 billion won, demonstrating the success of these efforts.

The recovery of these funds is a crucial step in combating financial crime, as it not only deprives criminals of their ill-gotten gains but also serves as a deterrent to others who may be tempted to engage in similar activities.

Overall, the identification of criminal proceeds totaling at least 410 billion won and the recovery of 300 billion won in reimbursement is a significant development in the fight against financial crime in South Korea. The efforts of prosecutors to identify and recover these funds serve as an important reminder of the need for continued vigilance in the fight against financial crime.

#terra #luna #fraud #crime #dokwon