Blockchain analytics firm Chainalysis has found that law enforcement finds cryptocurrency relevant to many investigations and holds positive overall views. The firm also notes the growing adoption of cryptocurrency and its increased criminal exploitation, including intellectual property theft and drug trafficking. Despite the availability of various tools, many respondents are dissatisfied with current resources, highlighting […]
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Elliptic Study Finds AI-Enabled Crime in Cryptocurrency Remains in Early Stages
A new study has found that crimes enabled by artificial intelligence in the cryptocurrency ecosystem are still in their nascent stages. Stakeholders can prevent these activities from becoming widespread through timely and measured responses. Data from the same study indicate a surge in tokens featuring AI-related keywords such as GPT, Openai and Bard. Approximately 4,500 […]
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Hong Kong Police Advisory Group Warns of Surge in Digital Asset-Linked Crime
The Hong Kong Technology Crime Police Advisory Group has warned about the rise of digital asset-linked crime, calling for the establishment of a regulatory system to identify and eliminate risks associated with this tech. According to police data, almost 0 million was involved in digital asset crimes during 2023, with 90% of these cases involving […]
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Report: 30% of UK Watchdog’s Financial Crime Experts Focused on Crypto Businesses in 2022-23
According to a report, the Financial Conduct Authority, a watchdog for the financial services industry in the U.K., had 30% of its financial crime specialists focused on crypto-asset businesses. Assessments conducted by supervisors in the U.K. found that not only crypto-asset businesses, but nearly all participants in the country’s financial services sector, are susceptible to […]
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‘Privacy Is Not a Crime’ — Samourai Indictment Provokes Strong Reactions From Crypto Advocates
On Wednesday, the U.S. Department of Justice from the Southern District of New York brought charges against the creators of Samourai Wallet for running an unlicensed money transmission service and for engaging in money laundering activities. This development has left the cryptocurrency community in dismay, with many expressing their displeasure over the aggressive measures employed […]
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UN Report: Crypto Crime Provided North Korea up to Half of Its Foreign Currency Income
A report issued by a United Nations panel of experts has concluded that cyber crypto heists have provided 50% of the foreign currency income for North Korea since 2017. The report indicated that North Korean actors have been linked to 17 theft and hack events involving over 0 million in 2023 alone, and details several […]
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Interpol Publishes Report on Crime in the Metaverse
The International Criminal Police Organization, known as Interpol, has issued a report that examines the metaverse from a law enforcement perspective. The report considers illegality in the metaverse, including metacrime, metaverse forensics, governance, and the opportunities it presents for using it in favor of law enforcement agencies.
Interpol Examines Law Enforcement in the Metaverse
Interpol, the international police organization, is beginning to consider the possibilities of crimes in the metaverse and how to fight them. Last week, the police institution issued a report called “Metaverse: A Law Enforcement Perspective,” which specifies the different crimes that can be committed in the metaverse and the opportunities it presents for improving the response of law enforcement agencies.
Jurgen Stock, Secretary General of Interpol, recognizes that the rise of virtual worlds represents an opening for organizations to expand their crimes to the metaverse. He stated:
The rise of powerful technologies such as the Metaverse is making the criminal landscape increasingly complex and transnational, posing new challenges for law enforcement.
One of these challenges is the lack of unique governance in the metaverse, given that these digital worlds are hosted across many countries. In this sense, the report states that “ensuring the application of the Universal Declaration of Human Rights and other existing international laws in the Metaverse would be fundamental.”
So, Interpol advocates for a holistic approach that involves various stakeholders of the metaverse and cross-border cooperation, deeming it ‘essential’ for orchestrating an effective response to crimes committed within the metaverse.
The report also recognizes that the metaverse can be used to improve the capabilities of police agencies. For example, digital worlds could be used for training purposes for catastrophe response or to practice vigilance tasks on specific landmarks or areas reproduced on the metaverse. Also, meetings can be held on the metaverse to improve interoperability between police agencies.
In addition, reproducing crime scenes in virtual environments could make examining cases across agencies possible. In October 2022, Interpol launched the first police-focused metaverse to act as a central hub and help police members from several organizations familiarize themselves with these new worlds and the crimes that can be committed in them.
What do you think about Interpol’s metaverse report? Tell us in the comments section below.
Chainalysis Reveals Decline in Crypto Crime, Shift to Stablecoins in 2024 Crime Report
Chainalysis’ latest report reveals a dual trend in the 2023 crypto crime landscape: a notable decrease in overall value of criminal transactions and a surprising shift from bitcoin to stablecoins as the preferred medium for illicit activities.
2024 Chainalysis Report Reveals a Decline in Crypto Criminal Activity, Shift in Currency Preference to Stablecoins
In a revealing analysis of the cryptocurrency landscape, the 2024 Crypto Crime Trends Report by Chainalysis has potentially revealed shifts in the pattern of illicit activities within the digital currency space. The report, which provides a still-developing view of crypto-related crimes in 2023, has highlighted a notable decrease in the overall volume of criminal transactions, alongside a turn towards stablecoins by cybercriminals.
According to Chainalysis, the total value received by illicit cryptocurrency addresses in 2023 fell to .2 billion, marking a considerable decrease compared to previous years. This figure, however, is an underestimation and is expected to rise as more illicit addresses are uncovered. Apropos, the report revised the 2022 illicit transaction volume from an initial estimate of .6 billion to .6 billion, a more than 90% increase. This significant revision is attributed to the identification of new illicit addresses and the inclusion of transactions from sanctioned services.
Another reason the new total is so much higher, is the inclusion of .7 billion in creditor claims against the now-defunct cryptocurrency exchange FTX, following the fraud conviction of its CEO. This decision represents a departure from Chainalysis’ standard methodology, which typically focuses on measurable on-chain activity.
In a notable shift, the report observes that stablecoins have surpassed bitcoin as the preferred currency for illicit transactions. This change in preference aligns with the overall increase in stablecoin usage in both legitimate and illicit crypto activities. Despite this trend, bitcoin continues to dominate in specific criminal activities, such as darknet market sales and ransomware extortion.
Other key findings include a significant reduction in revenues from crypto scamming and hacking, which decreased by 29.2% and 54.3% respectively. The report attributes these reductions to a change in scamming strategies and improvements in defi protocol security.
The report also sheds light on the increasing role of transactions with sanctioned entities, which accounted for a significant 61.5% of all illicit transaction volumes in 2023. This trend raises questions about how to distinguish between criminal activities and legitimate transactions within sanctioned jurisdictions.
The report has garnered mixed reactions on social media, providing a striking example of confirmation bias in action. Both crypto enthusiasts and detractors have cited the report to bolster their opposite opinions on digital assets.
Overall, do you think crypto-based crime represents an increasing or decreasing amount of total crypto transaction volume? Share your thoughts and opinions about this subject in the comments section below.
Elliptic: FTX Hacker Laundered Stolen Crypto Funds Through Russian Crime Networks
Close to a year has passed, and the hacker responsible for the staggering 7 million heist from the now-defunct crypto exchange FTX still remains elusive. Yet, Elliptic, a leading blockchain analytics firm, has meticulously mapped the intricate journey of the stolen funds, shedding light on the culprit’s attempts to launder and mask their activities. Allegedly, a portion of the pilfered assets have been mingled with bitcoins linked to notorious Russian cyber gangs.
Elliptic Maps Stolen FTX Crypto Trail, Links to Russian Cyber Gangs
In a tumultuous November 2022, FTX declared bankruptcy. On that same day, its CEO, Sam Bankman-Fried (SBF), faced accusations of misappropriating customer funds. Seizing the moment, a crafty hacker pilfered a staggering sum from FTX’s exposed wallets. As Elliptic’s recent findings indicate, the cybercriminal swiftly initiated a laundering spree across decentralized exchanges and cross-chain portals to blur their tracks and ward off asset confiscation.
Using platforms like Renbridge, the hacker deftly exchanged the stolen tokens for mainstream crypto assets such as ether, then channeled these funds into bitcoin. Elliptic said over million flowed through Renbridge, a platform ironically under the umbrella of FTX’s sibling firm, Alameda Research. To add another layer of obscurity, the hacker dispatched the bitcoin through mixing services like Chipmixer, Elliptic’s study reveals.
For nearly nine months, a sizable chunk of ether, amounting to more than 0 million, lay untouched in the perpetrator’s digital vault. But as September 2023 drew to a close, the hacker reignited laundering operations, employing fresh cross-chain bridges and bitcoin mixers, as earlier ones faced restrictions or confiscations.
Through tracking efforts, Elliptic’s sleuths pinpointed instances where the laundered funds surfaced on exchanges, having been blended with other transactions. Elliptic claims these transactions intersected with accounts tied to cybercriminals operating from Russia. While the hacker’s true identity remains shrouded in mystery, such clues hint at the possibility of the offender hailing from Eastern Europe, diverging from earlier suspicions of North Korea’s notorious Lazarus Group.
What do you think about Elliptic’s research report that claims the FTX hacker funneled funds through Russian cyber gangs? Share your thoughts and opinions about this subject in the comments section below.
Israeli Cyber Crime Unit Raids Company Accused of Producing a Crypto-Stealing ‘Sting Software’
Israeli law enforcement recently raided the offices of a company accused of producing software used by criminals to defraud crypto investors of millions of dollars. Some six suspects were arrested following the raid on a company that is reportedly operated by the country’s infamous crime families.
‘Sting Software’
The Israeli police’s National Cyber Crime Unit recently raided an IT company whose so-called “sting software” has helped criminal syndicates to steal millions of dollars from crypto investors. According to a Ynet News report, six individuals were arrested while dozens were taken in for questioning.
According to the report, the raided company is believed to be operated by the country’s infamous crime families. In his remarks following the raid, Dudi Katz, the head of Lahav 433’s National Cyber Crime Unit, said:
“We were able to stem the tide of this crime wave and bring down hundreds of call centers. This operation spanned internationally and was unique in scope, including cooperation with German police forces.”
In addition to German law enforcement, members of the Israel Money Laundering and Terror Financing Prohibition Authority as well as the Israeli Tax Authority were also involved in the raid.
Detained Suspect Denies Charges
As stated in the report, criminal syndicates would lure unsuspecting victims with the promise of high returns on crypto investment. The victims who showed an interest were then given purported credentials to access or control their investment portfolio. However, the report said when victims attempted to withdraw or cash out their profits they would realize that this option was not available.
Meanwhile, one unnamed suspect’s legal representatives Shay Roda and Uri Goldman said their client rejects the charges. They said as the investigations into the company continued, they would be able to relay the suspect’s “message to the relevant cyber investigators.”
What are your thoughts on this story? Let us know what you think in the comments section below.