Michelle Murphy, 58, from Bedford, Texas, has been sentenced to nine years in federal prison for attempting to hire a hitman using bitcoin to kill her boyfriend’s lover. Charged in September 2023 and pleading guilty in December, Murphy used the dark web to orchestrate the crime, paying ,510 in bitcoin. The transaction was traced through […]
Bitcoin News
Convicted UK Woman Found With $4B in BTC, the SEC Seeks $2B Fine From Ripple, and More — Week in Review
A London woman has been convicted for money laundering, having been found with over .3 billion in bitcoin, which she converted into physical assets. The SEC is seeking a nearly billion fine from Ripple Labs in a landmark XRP lawsuit, a move Ripple’s CEO deems unprecedented. The activation of a dormant bitcoin wallet, known […]
Bitcoin News
UK Court Convicts Woman Found With More Than $4.3 Billion in BTC
A London resident reportedly caught with bitcoins worth over .3 billion has been convicted for entering into a money laundering arrangement. The woman specialized in converting digital assets into physical assets, such as multimillion-dollar houses and jewelry. Converting Bitcoin to Physical Assets A British woman, found in possession of bitcoins currently valued at over .3 […]
Bitcoin News
Woman Accused of Laundering Bitcoins for Chinese Fraudster Goes on Trial in the UK
A British citizen recently went on trial in the U.K. for laundering bitcoins on behalf of a fugitive Chinese fraudster, Yadi Zhang. Prosecutors insist that Jian Wen was aware that Zhang’s bitcoins were acquired using stolen funds. However, Wen defended her actions and said she thought Zhang had accumulated her wealth through her jewelry business, property portfolio, and bitcoin mining operation.
Zhang’s Wealth Management Business
A British-Chinese woman, Jian Wen, is on trial in the U.K. for allegedly laundering bitcoins that were sourced with .3 billion stolen from more than 128,000 investors in China. According to prosecutors, Wen is facing three charges of laundering money on behalf of the Chinese national Yadi Zhang.
Zhang, a fugitive from justice, is said to have perpetrated the grand fraud via her bogus wealth management business between 2014 and 2017. Afterwards, she reportedly converted some of the stolen money to bitcoin (BTC) before leaving for London under a false identity.
Upon arriving in the U.K., Zhang sought the services of Wen to convert her BTC into cash, jewellery, and other luxury items. The Crown Prosecution Service (CPS) alleges that Zhang’s ultimate objective was “to disguise the true source of the funds.”
During the trial, Gillian Jones, who represented the CPS, stated that while Wen was not involved in the fraud, she may have known that Zhang’s bitcoins were proceeds from criminal activity. Jones urged the jury to ask Wen if she was aware of Zhang’s criminal activities.
The lawyer argued that Wen, a naturalized British citizen, knowingly acted as a front for Zhang and was probably paid for it. However, Wen defended her actions and said she thought Zhang had accumulated her wealth through her jewellery business, property portfolio, and bitcoin mining operation.
The trial is expected to run until early March, according to the report.
What are your thoughts on this story? Let us know what you think in the comments section below.
Australian Woman Accused of Laundering $5M in Bitcoin Through Unregistered Exchange
In a first for the country, an Australian woman has been charged with illegally operating an unregistered Bitcoin exchange.
She further stands accused of using the cryptocurrency “exchange” to launder over 326 BTC transacted since 2017.
Australian Woman Accused of Money Laundering Through Illegal Bitcoin Exchange
An unidentified woman has been charged with what is said to be the first case of its kind down under involving Bitcoin.
The 52-year old woman was apprehended by NSW police while at a shopping center in Sydney’s inner west side.
NSW police and detectives from the State Crime Command’s Cybercrime Squad established Strike Force Kerriwah has been investigating the case since November 2018.
Related Reading | Global System to Combat Crypto-Driven Money Laundering in Development
Authorities claim that the individual was tied to a cryptocurrency wallet that was used to transact over 326 BTC over the course of several years.
“That equates to over million in today’s money. This is a significant quantity of Bitcoin for somebody who is not a registered digital currency exchange,” Detective Superintendent Matthew Craft, Cybercrime Squad Commander explained.
The woman was detained, and NSW police seized ,000 in cash and 3.8 BTC worth of Bitcoin. Telephones, smartphones, computers, and more were also taken from the suspect’s home in Hurtsville.
Detectives say a search warrant was executed, and they hope that this arrest and continued surveillance will lead to many additional arrests related to the case dating back to 2017.
How Law Enforcement Is Tackling International Crypto Crime
The biggest issue governments and chief regulators take with cryptocurrencies, is their use related to “illicit” criminal activities and especially money laundering.
The pseudo-anonymity – or complete privacy – offered by some cryptocurrencies makes them especially attractive for cybercriminals, and even rogue nations to skate sanctions and or launder money.
These crypto assets are often at the center of most ransomware threats, and it has given the likes of Bitcoin and Monero a bad name.
Related Reading | Australian Law Enforcement Nets 20x Gains From Seized Bitcoin
Task forces like the one formed in Australia are becoming commonplace, and several nations have joined forces to create a global system to combat money laundering.
Elsewhere other firms like the IRS are asking third-party firms for support to trace transactions, which could lead them to crypto traders and investors failing to report taxes – yet another federal crime.
It’s not all terrible for law enforcement when dealing with crypto crime. A separate case involving Bitcoin in Australia led to over 20x returns for the government as the BTC they seized had ballooned in value by over 2000% by the time ligation ended and the Bitcoin could be liquidated.
NewsBTC
Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order
A woman based in the United States island-state of Hawaii has lost nearly half of her entire life savings, in a crypto mining-related Ponzi scheme.
And while the woman is clearly the victim, she’s been hit with a temporary restraining order for voicing her concerns and attempting to retrieve the money that was stolen from her by scammers.
Investor Loses 401K Savings to Bitcoin Mining Ponzi Scheme
An investor based in Waipahu, Hawaii who cashed out half of the money in her 401k retirement fund to invest in two different Bitcoin mining operations, is now out more than ,000 as a result of an investment scam.
Related Reading | Why This Developer of the Controversial HEX Cryptocurrency – Accused of Scam – Left
The woman claims that she made over a ,000 investment into BitClub Network and USI Tech – two firms with ties to Bitcoin mining. These businesses claim that they used specialized computers designed to mine for the crypto asset, but instead were simply taking the from new investors to pay off older ones, in a typical Ponzi scheme.
The two companies were recommended to the woman by a close friend, who also eventually got burned in the scheme, however, it’s not clear if the initial friend was complicit in the scheme.
She made several attempts to receive a refund on her investment, but instead, the company was able to file a temporary restraining order against the woman, preventing her from furthering her case for a refund.
Deputy Prosecutor Scott Spallina says that this woman isn’t the only victim of cryptocurrency-related scams that have included a temporary restraining order, who claims has become a new pattern for perpetrators to hide behind. The deputy also claims that another investor has lost more than 0,000 from similar crimes in the area.
The woman claims that she doesn’t expect to get her money back, but wants to “see justice for what they had done.”
Crypto Crime Sees a Surge Following Bubble-Driven Visibility, Will It Ever Stop?
Cryptocurrency related crime has only increased since the asset class became widely known following the crypto bubble of 2017.
After this, cybercrime-related to crypto asset began to climb at an alarming rate, and is now regularly being used by hackers who install ransomware on the computers of unsuspecting individuals and businesses and then demand a ransom paid in cryptocurrency.
Related Reading | United States Regulators Begin Crack Down on Crypto and Bitcoin Crime
The emergence of crime related to crypto has caused US regulators to take a closer look at the asset class, and additional rules and regulations are expected to follow as the industry and market further develop.
Until it does, scams like these will likely continue to run rampant, giving the crypto market its wild west stigma.
The post Hawaiian Woman Invests 401K Into Crypto Mining Ponzi Scheme, Hit With Restraining Order appeared first on NewsBTC.
UK Woman Faces Death Threats After Speaking Out on Alleged Scam OneCoin
The British woman says she received death threats after speaking on a podcast about the alleged Ponzi scheme.
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Panera Bread, Porn, & Bitcoin At Center of Alleged Scandal Involving 86-Year-Old Woman
Let’s face it, there aren’t many instances where you can imagine a story entailing Bitcoin, porn, and Panera Bread, but that’s exactly the case with an 86-year-old Chicago woman.
The tech-savvy elderly woman was able to connect the dots as to how a Bitcoin extortionist was able to find her through a data leak stemming from a Panera Bread rewards account she signed up for to receive a free bagel on her birthday.
Birthday Bagel Turns into Bitcoin Extortion Scam and Porn-Related Threats
While its certainly a stereotype and outliers exist – just like the 86-year-old woman at the center of this story – most elderly aren’t exactly the most tech-savvy of internet users. There are communities dedicated to this common stereotype such as “Old People Facebook” on Reddit.
However, Arlene Kaganove from Chicago doesn’t fall victim to such stereotypes and because of it, she also didn’t fall victim to a Bitcoin extortion scandal.
Related Reading | Bitcoin Extortionists Turn From Blackmail to Bomb Threats
The 86-year-old woman was shocked to find threatening emails sent to her accusing her of watching porn, which she says is “hilarious.” “They told me I have very good taste in porn so I thought that was nice,” Kaganove said, showing how lighthearted she looked at what could otherwise have been a scary situation.
The extortionists were demanding ,400 in Bitcoin, but the woman has two masters degrees in chemistry and law, and despite saying the hackers would only see “a little old lady cursing at the computer,” she is far savvier than the cybercriminals took her for.
Kaganove kept detailed notes about what password she used to sign up for what. She claims to sign up for many free programs, including one from Panera Bread to receive birthday rewards. But because she did keep notes, she realized that the crypto-seeking criminals were allegedly related to Panera Bread, which suffered a massive data breach back in April 2018 that saw millions of customer’s data leaked.
Panera denies the allegations in a statement, saying that no “MyPanera Rewards account passwords were exposed during the April 2018 incident,” and that “Arlene’s account was not accessed improperly.”
Related Reading | Crypto and Bitcoin Ransom: A Rapidly Growing Trend
Whatever transpired, Arlene was able to realize the threat was nothing more than a scam and called the police. She doesn’t want others to fall victim to the scam.
“If they are sending six [letters] to me, they are sending a lot more to people,” she said. “I am sure someone is sending them money.”
Six months ago, this NewsBTC journalist also received a similar threat, with similar claims as the one Arlene received. The scam is widespread and is reaching everyone from tech-savvy crypto journalists to innocent old ladies seeking a free bagel. The one common thread amongst these is that the scammers have zero proof of the threats they are making, and hoping to scare people into sending funds.
If this happens to you, contact your local authorities.
The post Panera Bread, Porn, & Bitcoin At Center of Alleged Scandal Involving 86-Year-Old Woman appeared first on NewsBTC.
Australian Woman Travels to Ten Countries in 12 Weeks on Cryptocurrency Alone
Many of the critics of cryptocurrency asset like Bitcoin and Ethereum argue that nobody spends them as they are intended to be, and even less accept it as payment making everyday tasks like shopping or traveling extremely challenging if only using cryptocurrency as a means to pay for goods and services.
However, a Gold Coast, Australian vlogger created a 12-week “crypto challenge” where she set a goal of traveling to Europe to attend the annual London Blockchain Week to learn more about what cryptocurrency and blockchain offered the young woman for career opportunities.
Jaide Barclay Ditches Career for Cryptocurrency, Launches 12-Week Challenge
Crypto vlogger and co-host of the Youtube show ‘Crypto With Jess & Jaide,’ Jaide Barclay left her regular life on the Gold Coast of Australia to pursue a career in cryptocurrency.
After investing in the digital asset class in 2017 like so many others, Barclay became infatuated with the emerging technology and disruptive financial asset. Recently, she decided that she wanted to get more involved in the cryptocurrency sector, and set out on a plane to Europe with the goal of attending London Blockchain Week.
View this post on InstagramA post shared by Jaide Barclay (@jaidebarclay) on
Before the trip, Barclay claims she had never “had never actually purchased anything with” her cryptocurrency, but through her interest in the digital asset class and through her love for travel and passion for learning more, she decided to challenge herself and see if she could “live on crypto” throughout her travels.
Related Reading | Social Media Outage Highlights Why Facebook Libra Cryptocurrency Puts Personal Privacy At Risk
The vlogger shared the idea on Instagram, and the cryptocurrency community instantly supported the positivity.
Spending Crypto is Hard Because HODL, Not Because You Can’t
The tour took Barclay across seven different countries and a grand total of 16 different cities living only on nothing but cryptocurrency to pay for goods and services. The passionate crypto advocate documented her entire journey through – to no surprise – a vlog.
Barclay just completed her challenge, and says that the key to finding locations that accepted cryptocurrency was simply Googling for the information.
Related Reading | Bitcoin Price Action: Volatility is Back in a Big Way, Tom Lee Says To Buy and HODL
“I Googled places that accepted cryptocurrency in the different places I was visiting,” she said, adding that the businesses were “were either physical shops or websites that I could pay for things with crypto.”
Towards the end of her 12-week challenge, though, Barclay admits that she stopped spending as much of her crypto holdings because the price of Bitcoin was going up so much towards the end of her journey. Despite curbing her own spending due to the HODL effect, Barclay does believe that each passing year “we will see more and more places accepting it and more people knowing what it is,” and that as the “market matures and prices become less volatile, more people will start spending it.”
We look forward to those days, Jaide.
The post Australian Woman Travels to Ten Countries in 12 Weeks on Cryptocurrency Alone appeared first on NewsBTC.
American Woman Faces 20-Year Sentence for Using Bitcoin to Fund ISIS
A Pakistani-American woman is facing up to 20 years in prison after she admitted to sending Bitcoin to a terrorist organization to fund their deadly criminal operation and activities.
27-Year-Old New York Woman Funds ISIS with Bitcoin
Zoobia Shahnaz, a 27-year old New York hospital technician, has admitted to a Federal Court Judge that she took out a fraudulent ,500 loan and a number of fraudulent credit cards in order to raise a grand total of ,000. The raised funds were used to buy Bitcoin and other cryptocurrencies, which were then sent to various ISIS shell companies across the globe.
Shahnaz admitted to the charges as part of a plea deal with prosecutors. Oftentimes a defendant can bargain with prosecutors for a less stringent sentence if charges are admitted to, or information is provided that further’s an investigation or better supports the charges of the case.
Related Reading: Indonesian Investigator Claims Bitcoin is Funding ISIS Operations
Even with the plea deal, the judge presiding over Central Islip federal court in New York, Judge Joanna Seybert, could sentence Shahnaz to up to 20 years in a federal prison.
Shahnaz – a U.S. citizen – was apprehended by authorities from the Joint Terrorism Task Force back in July 2017, as she was preparing to board a flight to Pakistan, on her way to Syria. The investigation also revealed that the defendant was visiting “various violent jihad-related websites and message boards, and social media and messaging pages of known IS recruiters, facilitators and financiers.”
Crypto Not Typically an Effective Tool for Funding Terror
While Shahnaz eventually was caught, the American woman was able to send cryptocurrencies to ISIS abroad effectively, while the practice usually fails in general for terrorists, according to Yaya Fanusie, the director of analysis for the Foundation For Defense of Democracies Center on Sanctions and Illicit Finance.
In September, during a Congressional House Financial Services Committee hearing, Fanusie revealed his findings that terrorist organizations such as ISIS have repeatedly failed to fund their criminal operation using cryptocurrencies.
Related Reading: Blaming Bitcoin for Aiding Terrorism, Money Laundering
Fanusie pointed out the fact that part of the struggle is due to terrorists organizations being required to operate in desolate locations, often hidden away from society for protection.
Without easy access to internet or electricity infrastructure, sending and receiving cryptocurrencies creates an insurmountable challenge that has deterred terrorists from using the emerging technology to fund their criminal activities.
Even though terrorists organizations like Al Qaeda and ISIS have struggled thus far, Fanusie warned Congress that that could change in the future, and that the United States should prepare itself “for terrorists’ increasing usage of cryptocurrencies,” so the U.S. “can limit the ability to turn digital currency markets into a sanctuary for illicit finance.”
Featured image from Shutterstock.
The post American Woman Faces 20-Year Sentence for Using Bitcoin to Fund ISIS appeared first on NewsBTC.