DC Magistrate Judge Calls Unhosted Wallet ‘Horror Story’ a ‘Fiction’

“Indeed, cash poses a greater challenge to law enforcement than cryptocurrency in unhosted wallets," wrote Magistrate Judge Zia Faruqui in an opinion on a forfeiture case.

Regulators dial up the heat: Dash, ZEC and Monero reach boiling point?

Can privacy coins be better managed to satisfy both law enforcement interests and those who like the greater anonymity they provide? On New Year’s Day, the US-based crypto exchange Bittrex announced via Twitter that it was delisting three leading privacy coins: Monero (XMR), Zcash (ZEC) and Dash.

South African Court Grants Order to Liquidate Mirror Trading International After Investors Fail to Withdraw Their BTC

A South African High Court recently granted a provisional liquidation order against Mirror Trading International (MTI) following an application for relief by two investors who failed to withdraw their bitcoin.

CEO of MTI Bitcoin Ponzi Scheme Flees South Africa in Possible Exit Scam – Funds Blocked

In an unexpected turn of events, the management team at Mirror Trading International (MTI) now suggest that their CEO Johann Steynberg may have exit scammed.

FBI to reform virtual currency practices following DoJ recommendations

The DoJ thinks the FBI needs to shape up when it comes to its cryptocurrency support teams. A recently released US Department of Justice audit of the Federal Bureau of Investigation’s (FBI) practices in regards to darknet criminal investigations concluded that the law enforcement agency is in disarray — and an overarching "cryptocurrency support strategy" might be among the solutions.  According to an unclassified version of the audit released on Thursday, the FBI’s current darknet investigation efforts are — perhaps ironically — hampered by a “decentralized” set of practices, policies, and training programs, as well as compartmentalized intelligence leading to “redundant” efforts.

Opportunities for blockchain in police investigations

How distributed ledger technologies can help law enforcement agencies to fight crime and money laundering. The problem of spreading cybercrime is becoming more acute today, and developed countries with high gross domestic product rates suffer from it to a much greater extent than developing countries.

South African Regulator’s Probe Into Mirror Trading International Unearths Previously Undeclared Losses and Missing Bitcoins

South African financial regulator, the Financial Sector Conduct Authority (FSCA), has filed criminal charges with local law enforcement against Mirror Trading International (MTI), the alleged online bitcoin trading scam.

Indian Crypto Trader Arrested for Allegedly Using USDT to Launder Money on Behalf of Chinese Online Betting Scammers

An Indian law enforcement agency has arrested Naisar Kothari, a cryptocurrency trader, for his role in a money-laundering scheme linked to online Chinese betting scams.

How FinCEN Became a Honeypot for Sensitive Personal Data

Financial data records collected by FinCEN are a valuable tool for law enforcement.

Mexican authorities struggle to keep up as cartels embrace crypto

The head of a major Mexcian financial intelligence unit has complained that local law enforcement has only a quarter of the staff it needs to respond to crypto laundering from cartels. Mexican authorities report an increase in the use of crypto assets to launder funds by criminal syndicates in Latin America. In a Dec.

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.

Silk Road Bitcoin Seizure: Analytics Firm Claims Tokens Worth Millions Still Outstanding

Analytics firm Coinfirm says the US Department of Justice (DOJ)’s seizure of digital assets associated with the now-defunct Silk Road left behind tokens worth millions of dollars.

Chainalysis Launches Program to Help Law Enforcement with Monitoring and Storing Seized Crypto Assets

Chainalysis has launched an asset realization program intended to assist government agencies with monitoring and storing seized crypto assets.

Former Microsoft Engineer to Serve 9 Years in Prison in a Case That Involves Use of Bitcoin Mixers

A US court in Seattle has sentenced a former Microsoft engineer to 9 years in prison after finding him guilty of 18 federal felonies relating to his elaborate scheme to defraud the tech giant $10 million.

Sharktron Defi Project Devs Exit Scam: Tron Foundation Says Part of Missing Funds Now Frozen

Developers of the Sharktron defi project have exit scammed with reports suggesting that TRX tokens worth up to $10 million are missing.

EU Resolution Draft Seeks to Bypass Encryption - Report

An alleged document has surfaced, per which the Council of the European Union is seeking to work with governments and industries to find a "balanced" way to bypass encryption and access people's personal electronic devices when a law enforcement investigation requires it, while still protecting one's privacy.

$200 Million Brazilian Crypto Fraud Scam: The US Seizes $24 Million Worth of Digital Currencies

The United States Department of Justice (DOJ) says it has seized cryptocurrencies worth $24 million after receiving an official request from the government of Brazil.

Declaring a crackdown? What to make of the DoJ crypto framework release

The US Department of Justice has articulated its digital enforcement strategy, putting the crypto community on notice. The United States Attorney General’s Cyber-Digital Task Force recently unveiled the result of its months-long effort to evaluate emerging cryptocurrency-related threats and articulate law enforcement strategies for countering them.

Crypto Lender Cred Freezes Funds, Suspects Internal Fraud

Cred, a crypto lending service, announced a freeze on all funds and cooperation with law enforcement following a "fraudulent incident."

Cred Says Fraudulent Activity Led to Loss of Funds; Law Enforcement Investigating

Decentralized lending platform Cred says it's cooperating with law enforcement over a "loss of funds."

South African Regulator Raids Home of Key Members of an Alleged Crypto Ponzi Scheme

A South African regulator along with the country’s police have reportedly seized electronics devices and computers belonging to two principal members of Mirror Trading International (MTI), an alleged bitcoin Ponzi scheme.

P2P Trading Resumes on Okex While Withdrawals Freeze Still in Effect: Tron Foundation Announces Cashout Plan for TRX Holders

Asian cryptocurrency exchange Okex says peer to peer trading is now open but the freeze on withdrawals remains in effect.

Cryptographers Are Always Going to Be ‘One Step Ahead’ of Regulators: Monero’s Spagni

Privacy protocols have become the focal point of regulators and law enforcement agencies when the race among central banks to launch sovereign digital currencies is heating up.

Coinbase Reveals Wave of Requests From FBI, ICE, IRS, SEC and Other Law Enforcement Agencies

San Francisco-based digital currency exchange Coinbase unveils that it has received a flood of requests from law enforcement agencies in the US and around the world.

Amid IRS bounty and competitor progress, Monero developers ship a major update

A new Monero update brings improvements in performance, speed, and security amid increased scrutiny from law enforcement and developments from competitors First announced in September, Monero developers today went live with a network update featuring a new version of its node software, codenamed 'Oxygen Orion.' The product of 30 contributors, the update promises significant improvement across nearly all aspects of the privacy-focused cryptocurrency’s performance.  The highlight of the new update is the compact linkable spontaneous anonymous group (CLSAG) feature.

Coinbase Received 1,900 Requests for Client Info From Law Enforcement During First Half of 2020

Coinbase has revealed that it received a total of 1,914 requests for customer data from global law enforcement agencies during the first six months of 2020.

Okex Halts Withdrawals Due to ‘Out of Touch’ Private Key Holder, Founder Star Xu Talks With Police

The digital currency exchange Okex disabled cryptocurrency withdrawals on Friday morning and explained that funds were “safe and not affected.” Following the withdrawal announcement, regional reports claim that Okex’s founder Mingxing “Star” Xu was taken away by the police.

Coinbase received 1,914 Law Enforcement Information requests this year!

Coinbase has published a "transparency report" that also revealed how the leading crypto exchange has received 1,914 “legitimate government” requests in 2020.

Coinbase Received Over 1,800 Law Enforcement Information Requests in the First Half of 2020

Coinbase received more than 1,800 request for information from law enforcement in the first half of 2020, largely in the form of subpoenas, the company announced Friday.

OKEx Suspends Withdrawals; CEO Says Key Holder Cooperating With Law Enforcement on ‘Personal Issue’

Withdrawals are suspended as a key holder is "out of touch," preventing withdrawal authorizations.

33 money laundering crypto crims targeted worldwide in 3 separate cases

Law enforcement representing 16 different countries cooperated to arrest 20 members of a global crypto-powered money laundering cartel in just one of the cases. Law enforcement officials from around the world hav taken action against a major transnational money laundering operation involving cryptocurrency. On Oct.

Attempting to stifle encryption is a waste of time, suggests Status security chief

It's not a scarce resource like nuclear power, whose proliferation is more easily suppressed. Corey Petty, a chief security officer at Status messenger, told Cointelegraph that he believes there is no way to marry end-to-end encryption with the type of backdoor access law enforcement agencies continue to lobby for.

How Law Enforcement Can Detect If Criminals Are Using Crypto

How to catch a crypto-criminal? A blockchain forensics firm outlined the obvious in a guide.

CipherTrace Life Hack for Criminal Investigations: How to Know if Cryptocurrency Was Utilized

CipherTrace blockchain analytics firm has revealed guidelines that could help law enforcement identify that cryptocurrency was used for illicit activities.

CipherTrace gives officials tips on how to uncover criminals' crypto caches

CipherTrace has published comprehensive guidance intended to help law enforcement identify signs of crypto usage when conducting investigations. Blockchain forensics firm CipherTrace has published comprehensive guidance to assist law enforcement officials in identifying signs of cryptocurrency use when carrying out criminal investigations. The report notes that the US Department of Treasury has identified a “consistent decrease in reported bulk cash seizures by agencies throughout the United Since” since 2013, suggesting the trend may indicate increased cryptocurrency adoption among criminals.

US, UK Again Request Government Access to Encrypted Data

Several leading governments signed a letter requesting tech companies introduce backdoors to encryption for law enforcement.

US Government Moves to Regulate Cryptocurrencies After Attorney General Publishes Enforcement Framework

United States Attorney General (AG) William Barr says the recent publishing of the Cryptocurrency Enforcement Framework will help law enforcement to fight elements using digital currencies for illicit ends.

Law Decoded: Police and thieves on their screens, Oct 2–9

The Department of Justice made headlines in crypto and elsewhere, leading a week of law enforcement locking down around the world. Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law. Editor's note Historians typically date the birth of international policing as we know it today to the 1800s, a response to the explosion in nationalist movements and non-governmental political radicalism in Europe.

Why Bitcoin traders can expect a stronger future

BitMEX, the largest cryptocurrency derivatives exchange in the world landed in a heap of trouble with US law enforcement.

DEA Special Agent O’Kain: Regulated Bitcoin Exchanges Are Good For Law Enforcement

DEA Special Agent Patrick O’Kain spoke at the LA Blockchain Summit on Bitcoin on the role of government agencies in policing the digital asset and blockchain space.

European Police Forces Want Tougher KYC Measures for Crypto Industry

Europol, the EU’s law enforcement cooperation agency, has called on EU member states to press crypto businesses to enforce tighter know-your-customer (KYC) policies.

OFAC Warns Americans Against Facilitating Ransomware Payments

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) recently issued an advisory highlighting the sanctions risk American citizens face if they help facilitate ransomware payments.

While Darknet Users Search for New Markets, Global Law Enforcement Reveals Mass Arrests

During the last month since the fall of Empire Market, darknet market (DNM) patrons have been migrating to alternative markets.

Kucoin CEO Says Exchange Hack Suspects ‘Found,’ $204 Million Recovered

According to the Kucoin exchange CEO Johnny Lyu, the trading platform has recovered $204 million in crypto assets since October 1.

KuCoin CEO claims hacking suspects identified

They’ve already gotten the police involved. As the fallout from the hack on its platform continues, KuCoin said it has identified suspects and have now officially involved law enforcement in the investigation.  KuCoin CEO Johnny Lyu tweeted on Oct.

CFTC promises to protect 'the burgeoning markets for digital assets such as Bitcoin'

The CFTC continues its roll of crypto announcements this week in a recent fraud bust-up. On Friday, the Commodity Futures Trading Commission made a fraudster pay back $7.4 million to investors while vowing to protect the Bitcoin market. Per the CFTC's announcement, James McDonald, Director of the commission's enforcement division, said The CFTC will continue working to protect our markets, including the burgeoning markets for digital assets such as Bitcoin, from fraudulent schemes, and will work in parallel with our criminal law enforcement colleagues where appropriate. Today's announcement concerns Jon Barry Thomson, who pleaded guilty to commodities fraud for convincing two investors to send him over $7 million for a Bitcoin investment scheme that never materialized.

Onecoin Victims Join Petition Seeking Establishment of European Crypto Fraud Compensation Fund

Onecoin victims have joined a consortium that wants the European Parliament to consider a petition seeking the establishment of a compensation fund.

Terrorists Allegedly Sent Funds to Syria via French Bitcoin Coupons

French law enforcement officers arrested 29 alleged terrorist network members that sent funds to Syria via Bitcoin coupons.

Crypto adoption has no future without regulation and law enforcement

Crypto depends on the ability of regulators to create a framework that protects consumers and makes investing in crypto more welcoming. The basis of any exchange of value is trust.

Nexo founder feels vindicated by the FinCen leak, talks of double-standards

Had it been Coinbase or Nexo, he agreed with speculation that law enforcement would have been knocking on the door the next day. Nexo co-founder Antoni Trenchev told Cointelegraph that he believes the information revealed during the recent FinCen leak vindicates the crypto industry.

Forex Strapped Nigeria Designates Crypto Assets as Securities

The Securities and Exchange Commission (SEC) of Nigeria has designated crypto assets as securities as the authorities step up efforts to regulate Africa’s largest cryptocurrency market.

Russian Troll Farms Start Using More Altcoins to Cover their Tracks

As American intelligence and law enforcement agencies attempt to crack down on Russian so-called troll farms suspected of attempted electoral interference, farm operators are responding by moving towards the use of a broader variety of cryptoassets and “chain-hopping” techniques. On September 10, the American Department of the Treasury’s Office of Foreign

Major South Korean Crypto Exchange Raided by Police in Alleged $25.2M Fraud Case

South Korean police raided the country’s largest cryptocurrency exchange, Bithumb on September 2 as part of an investigation of fraud allegedly committed by the organization’s main shareholder.

A legal asset after all? Governments are cashing in on seized crypto

The way law enforcement agencies deal with seized crypto could indicate their de-facto acceptance of the asset class. It is customary for government officials around the world to profess their disdain for crypto on the grounds that it is widely used to facilitate crime and finance terrorism.

As 'Apathy Towards Privacy' Prevails, This Firm Says It Can Track Monero

While claims that US crypto intelligence firm CipherTrace can track transactions in monero (XMR), the most popular privacy coin, was met with skepticism, other analysts warned about "user apathy towards privacy." Yesterday, CipherTrace announced what it calls as the world’s first XMR tracing capabilities designed to allow law enforcement, government, and virtual

Bitsonar Whistleblower Says Law Enforcement Faked His Murder in Attempt to Protect Him

A whistleblower from defunct crypto firm Bitsonar has reappeared after going missing f for three days, saying law enforcement faked his kidnapping and death.

Ciphertrace Allegedly Builds Monero-Tracing Tools, XMR Proponents Disagree

The blockchain surveillance firm Ciphertrace claims to have created the “world’s first” monero tracing tools for law enforcement.

Binance and Ukraine Capture Cyber Criminals Laundering $42M

The world’s largest exchange keeps deepening its cooperation with law enforcement. Binance, the world’s largest cryptocurrency exchange, is collaborating with law enforcement authorities in Ukraine to take down some large-scale money laundering schemes. Working with the exchange, Ukraine’s cyber police identified and arrested a group of criminals involved in a $42 million ransomware and money laundering operation, Binance told Cointelegraph in a criminal investigation report on Aug.

Law Decoded: How Long Is the Arm of the Law? August 7-14

New muscle from law enforcement investigating crypto suggests that government innovation may be slow but the government gets what it wants. Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law.  Editor’s note DeFi has stolen the show lately.

US Authorities: Millions in Bitcoin and Cryptocurrency Seized From Three Terrorist Groups

The IRS Criminal Investigation unit, the Justice Department, and their law enforcement partners say they’ve carried out the largest-ever terrorism-related seizure of cryptocurrencies.

Twitter Hack Shows That Crypto Is Easier to Investigate Than Fiat, Say Industry Law Experts

A panel of compliance experts from the crypto industry agreed that law enforcement and institutional finance have been hearing more positive narratives about crypto. During an Aug.

A 17 Year Old Was Just Arrested in Connection With Twitter's Recent Hack

Authorities have taken a teen into custody, claiming him to be the brains behind the recent Twitter breach. Authorities have taken a teen into custody, believing him to be the brains behind the recent Twitter breach. Authorities have taken a 17-year-old into custody, claiming the not-yet-adult as the brains behind the recent massive Twitter breach.  "Early this morning, the FBI, IRS, US Secret Service, and Florida law enforcement placed a 17-year-old in Tampa, Florida, under arrest — accusing him of being the 'mastermind' behind the biggest security and privacy breach in Twitter’s history," a July 31 article from The Verge said. The massive exploit saw many top Twitter accounts breached on July 15, including the likes of Elon Musk, Joe Biden, and Bill Gates.  The teen reportedly faces north of 30 felony accusations, The Verge said.

Tampa Teen arrested in Twitter "BitCon"

Federal law enforcement officers say they’ve found the culprit behind the most devastating hack in Twitter’s history: a 17-year-old kid.

Cellebrite Launches Crypto Tracer Solution to Track Illicit Transactions

Cellebrite released a new cryptocurrency tracer tool that gives law enforcement and analysts the ability to track illicit crypto transactions. Digital intelligence firm Cellebrite has launched its “Cellebrite Crypto Tracer” solution. The new offering is powered by CypherTrace and aims to trace illicit cryptocurrencies involved in money laundering, terrorism, drugs, human trafficking, weapon sales and ransomware schemes. The suite of tools will be available to investigators, analysts and non-technical agents who want to lawfully obtain evidence and trace criminals who use cryptos like Bitcoin (BTC) through the darknet. Citing figures from an Oxford University study, Cellebrite states that an estimated $76 billion worth of illegal activities involve Bitcoin. Curating millions of information references to trace transactions The Cellebrite Crypto Tracer Solution allows investigators to aggregate and curate millions of open-source and private references, deception data, and human intelligence, resulting in a dataset of over 522 million attributable points. Speaking with Cointelegraph, Leeor Ben-Peretz, chief strategy officer of Cellebrite, states that Cellebrite Crypto Tracer is able to attribute millions of data points, such as account type, account holders, contract types, contract owners and other metadata.

Europol Empowers Victims with Tools to Fend Off Ransomware Attacks

Europol, European Union’s law enforcement agency, has put together an anti-ransomware initiative that has managed to intercept $630 million dollars and more in ransomware demands, since 2016.

Chainalysis Widens Access to Its Blockchain and Crypto Certification Program

Chainalysis is expanding access to its Chainalysis Cryptocurrency Fundamentals Certification program to the wider community. New York-based blockchain analytics firm Chainalysis is extending access to its certification program in crypto fundamentals to the wider professional community. Announced on July 23, the company said that its Chainalysis Cryptocurrency Fundamentals Certification (CCFC) would from now on be open to professionals in the financial services sector, government employees and the wider enterprise community.  Previously, the course had been limited to clients using Chainalysis’ investigations and compliance products.  As one of the higher-profile analytics firms in the blockchain intelligence industry, Chainalysis develops investigative tools that enable firms, governments and law enforcement agencies to monitor blockchain transactions and track suspected illicit activities. The CCFC program has been designed to provide participants with an industry credential and give them a foundational knowledge of cryptocurrency technology, an understanding of key stakeholders in the field, use cases and the functions of cryptocurrency in relation to the traditional financial system.  A new cohort of crypto professionals The CCFC course offers two days of training — web-based for now due to the coronavirus — that are centered on group discussions, practical exercises and case studies.

German Court Rules to Limit Authorities’ Access to People’s Data

The German constitutional court has ruled that the police and intelligence officials have too much access to people’s personal mobile phone and internet data.

US Law Enforcement Is Watching for Bitcoin Drug Purchases on Darknet

The NCIS has seen an uptick in darknet purchases using 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.

US Army Seeks a Cloud-Based Solution to Track Illicit Crypto Activities

The US Army Criminal Investigation Division Command plans to use a web application to track and trace cryptocurrency transitions. The United States Army Criminal Investigation Division Command (USACIDC) is seeking a Software-as-as-Service web application to help them track and trace illicit cryptocurrency transactions. According to a statement of work published on July 10, the USACIDC along with the Major Cybercrime Unit and FBI will use the application to detect activities such as fraud, extortion and money laundering carried out using cryptocurrencies.  The organization is taking bids for developed, tested and read-to-deploy web applications for the purpose till July 20.  The application must allow multi-currency analysis As per the USACIDC — an arm of the US Army that conducts criminal investigations worldwide — the web application they are seeking must be able to analyze Bitcoin (BTC) and other major cryptocurrencies in real-time while also enabling users to “conduct an in-depth investigation into the source of cryptocurrency transactions.” The document further explains that the cloud application should help the USACIDC with quick detection of “criminal and suspicious financial connections, identify suspicious cryptocurrency transactions, and investigate cryptocurrency connections.” The application should also come with the ability to spot suspicious transaction patterns and interactions with other entities, and a link analysis tool to facilitate the analysis of data. Last year, in July, the United States Army Contracting Command of New Jersey published a pre-solicitation notice seeking a similar web application to help law enforcement agencies to track and identify people using cryptocurrencies for illegal purposes.

Centre Obliges Government Request, Freezes Address With $100,000 USDC

Centre Consortium has blacklisted an ethereum address holding $100,000 in USDC, a move that the entity says was “in response to a request from law enforcement.” A joint venture between Circle and Coinbase, Centre is the issuer of the dollar-pegged USDC stablecoin, which runs on the Ethereum blockchain.