CryptoCoinsInfoClub.com

How To Launder Ethereum

Ethereum Bandits Have Stolen $225 Million This Year | Fortune

Ethereum Bandits Have Stolen $225 Million This Year | Fortune

Heres another reason to be leery of the initial coin offerings being done at a staggering pace in the cryptocurrency world: theres a one-in-10 chance youll end up a victim of theft. Phishing scams have helped push up criminal losses to about $225 million this year, according to Chainalysis, a New York-based firm that analyzes transactions and provides anti-money laundering software. In such scams, investors are tricked into sending money to internet addresses pretending to be funding sites for digital token offerings related to the ethereum blockchain technology. More than 30,000 people have fallen prey to ethereum-related cyber crime, losing an average of $7,500 each, with ICOs amassing about $1.6 billion in proceeds this year, Chainalysis estimates. Its a huge amount of money to generate in such a short period of time, said Jonathan Levin, co-founder of Chainalysis, whose software and database are used by some of the largest bitcoin companies and U.S. law enforcement agencies. The cryptocurrency phishers are doing pretty good against all the other types of criminals that are out there. Indeed, the huge amount of wealth that has fallen prey to cyber criminals is approaching the losses incurred by robberies in the U.S. for the entire year of 2015, which stood at $390 million, according to statistics released by the Federal Bureau of Investigation. ICOs are digital token sales typically that raise ether, with users transferring the funds to addresses provided by startups. Investors, sometimes eager to get early access to new token offerings have been tricked into providing their credentials to fake websites through targeted email campaigns, twitter posts and Slack messages, said Levin. Ether rose 0.3 percent to $324.92 on Thursday, according to data from coindesk, while Continue reading >>

Bitcoin Laundering Study: Where Do Criminals Turn To Mask Illicit Cryptoassets?

Bitcoin Laundering Study: Where Do Criminals Turn To Mask Illicit Cryptoassets?

A recent study ( PDF ) from the Foundation for Defense of Democracies Center on Sanctions and Illicit Finance and blockchain analytics company Elliptic explored the bitcoin laundering ecosystem. In the study, Elliptics forensic analysis of the Bitcoin blockchain and other publicly available data were used to track the flows of illicit funds from 2013 to 2016. This study aimed to identify where individuals turn in order to cash out or transmit bitcoins (BTC) acquired from illicit entities and to discover typologies for criminals laundering bitcoins, the report says. The study describes bitcoin laundering as a special type of money laundering that exists within the Bitcoin network where a user moves some bitcoins to a new address in a manner that obscures the original source of funds. The conversion of bitcoins into fiat currency on exchanges that lack adequate anti-money laundering (AML) and know-your-customer (KYC) policies can also fall under the category of bitcoin laundering. In addition to describing the common mechanisms for bitcoin laundering and explaining that this sort of activity is a small percentage of all transactions sent to exchanges and other conversion services, the study also offers some recommendations for law enforcement in terms of preventing the masking of illicit funds on the Bitcoin network. It should go without saying that any study related to the dark web or illicit use of the Bitcoin network needs to be taken with a grain of salt because avoiding detection is the whole reason for a criminal to use these sorts of platforms in the first place. Much of the study, which is titled Bitcoin Laundering: An Analysis of Illicit Flows Into Digital Currency Services, revolves around the use of conversion services. Conversion services are basically platfo Continue reading >>

Anonymity-enhancing Cryptocurrencies May Increasingly Enable Money Laundering

Anonymity-enhancing Cryptocurrencies May Increasingly Enable Money Laundering

Anonymity-Enhancing Cryptocurrencies May Increasingly Enable Money Laundering Cryptocurrencies are being used more frequently for money laundering, according to Homeland Security Investigations but bitcoins digital traces may not be as anonymous as criminals hope. On November 28, 2017, the Department of Homeland Security published the written testimony of chief special agent Matthew Allen before a Senate Committee on the Judiciary hearing titled "S.1241: Modernizing AML Laws to Combat Money Laundering and Terrorist Financing." Allen's testimony focused on the money laundering activities of transnational crime organizations (TCOs) that have turned to cryptocurrency as a means of anonymous value exchange . Due to this trend, Immigration and Customs Enforcement (ICE) and Homeland Security Investigation (HSI) are considering expanding the scope of their AML-related probes to encompass cryptocurrencies. Allen described the allure of cryptocurrency to criminals trying to hide their identities: "HSI agents are increasingly encountering virtual currency, including more recent, anonymity-enhancing cryptocurrencies (AECs), in the course of their investigations. AECs are designed to better obfuscate transaction information and are increasingly preferred by TCOs." Allen's testimony also covered two cases where HSI disrupted illegal drug operations on the dark web. In one case, Utah resident Aaron Shamo, organizer of a fentanyl and Xanax pill scheme, had $2.5 million worth of bitcoin seized from him by HSI agents. Shamo was arrested in December 2016. The other case involves Pennsylvania resident Henry Koffie, indicted for "Distribution of a Controlled Substance Resulting in Death and Importation of a Controlled Substance." According to Allen, "Koffie, a.k.a. NARCOBOSS, was a dark w Continue reading >>

How To Scam $102,860 Usd Worth Of Ethereum In 24 Hrs Withslack

How To Scam $102,860 Usd Worth Of Ethereum In 24 Hrs Withslack

How to scam $102,860 USD worth of Ethereum in 24 hrs withSlack Fear Of Missing Out (FOMO) is going to themoon Slack was designed for teams in an organization to collaborate. The concept of a team has a fundamental assumption of trust built into it. As a result Slack has a bunch of scam vectors. A lot of cryptocurrency projects are using Slack as a medium of communication. Ethereum introduced the Initial Coin Offering (ICO) concept with its crowd sale. Raising funds before the project was finished in exchange for tokens. Yielding 96,560%, the Ethereum crowd sale worked out ok for those still holding. Now if youre not deep into crypto you might think Ethereum was a fluke. To give you context for why there is epic FOMO happening right now take a look at these returns. Returns like this have never been available before, let alone to regular people. This has lead to a willingness to believe in the unbelievable. Combine: Unprecedented gains that put a get rich quick scheme to shame Slack is kind enough to send users an email to let them know they have unread direct messages. Naturally scammers have started sending direct messages to users. This bypasses email scam filters since the email is coming from [email protected] When an ICO happens the process is communicated through a variety of public channels. These announcements create a very convincing template for scammers to use. I want a 100% bonus. like, who doesnt? Blockchain provides transparency into how much was scammed. etherscan.io makes it easy to look up transactions on the blockchain to a particular address. Using the address in the scam we can see 106 transactions and a balance of $102,680.35 USD A variation involves an alert from the security team. Seems legit, except for the dodgy My Ether Wallet URL Also a qui Continue reading >>

When Crypto Exchanges Hold More Than Your Money

When Crypto Exchanges Hold More Than Your Money

When Crypto Exchanges Hold More Than Your Money Feb 1, 2018 at 13:05 UTC|UpdatedFeb 2, 2018 at 11:46 UTC Marc Hochstein is the managing editor of CoinDesk and a former editor in chief of American Banker. The following article originally appeared in CoinDesk Weekly , acustom-curated newsletter delivered every Sunday exclusively to our subscribers. Each of these three storiesout of Asia is significant on its own, but when youread them side by side theytell a much bigger, global story. First, on Jan. 23South Korea's financial regulator set a date for the introduction of a new rule barring anonymous cryptocurrency trading accounts.(Or, as some sensitivesnowflakesout there preferwe'd put it, "requiring customer identification for crypto trading accounts" - we never imagined anyone in this space would want to sugarcoat unwelcome news with euphemisms, yet here we are . But I digress...) The very next day, a different South Korean agency fined several cryptocurrency exchanges for failing to secure customer data . "While the security threats such as virtual currency speculation and hacking of handling sites are increasing, the actual situation of personal information protection of major virtual currency exchanges is very weak," warned the chairman of the Korea Communications Commission in announcing the fines. Topping it all off, on Jan. 26, Coincheck, a crypto exchange in Japan, admitted it had been hacked in what appears to be the largest single theft in cryptocurrency history. Some $533 million-worth of a mid-tier crypto known as XEM were pilfered. So let's step back here. Taken together, these events remind us that: Concerned about money laundering and financial crime, international regulators want to make sure crypto exchanges, like most financial intermediaries, know who Continue reading >>

International Compliance Training Views And Blogs : Cryptocurrency Prices And Money Laundering Is There A Link?

International Compliance Training Views And Blogs : Cryptocurrency Prices And Money Laundering Is There A Link?

Cryptocurrency prices and money laundering Is there a link? by: Framroze Pochara () on Thu Feb 1, 2018 As Bitcoin prices rose from $1,000 to $19,000, Ethereum from $8 to $715 and Ripple XRP up from $0.0064 to $3.79 in under 12 months, I found myself wondering, can this all be true? What is the story behind these obscene gains? Is this a wonder drug promising immortality to mankind? As a compliance and financial crime compliance (FCC) specialist, I wanted to find out more, and explore firsthand what financial crime risks could be posed by the world of cryptocurrencies and the initial coin offerings (ICOs). I decided to buy $100 worth of any cryptocurrency. I therefore took the first step of opening an account on one of the crypto platforms. The initial registration was pretty straightforward. The usual stuff name, address, date of birth, nationality, bank account details and upload of identity documents. A message flashed on the screen: Thank you for uploading the documents. Please allow us one months time to complete the identification and verification process. My immediate thought was: one month to open an account? They must be joking: even the banks do it faster. I still wanted to buy the Bitcoin on that day itself. So I registered myself on another cryptocurrency platform but got pretty much the same response 15 days for account opening. As a compliance person, whilst I was happy that the basic customer due diligence (CDD) processes were being followed, I wondered if these digital platforms carry out checks for source of funds, politically exposed persons (PEPs), sanctions, etc. I am pretty sure they do not. While waiting for the account opening process to be completed, I thought of buying a physical cryptocurrency wallet for safe keeping of the cryptos I would even Continue reading >>

Ethereum Price Analysis: Eth/usd On The Verge Of Abyss; South Korea Continues To Fight Crypto-related Money Laundering

Ethereum Price Analysis: Eth/usd On The Verge Of Abyss; South Korea Continues To Fight Crypto-related Money Laundering

You won't receive any more email notifications from this author. Ethereum price analysis: ETH/USD on the verge of abyss; South Korea continues to fight crypto-related money laundering Ethereum risks falling to fresh yearly lows. South Korean regulator launches the probe into domestic banks AML procedures. Ethereum has lost over 7% in tow days as the cryptocurrency market turns red amid FUD, speculations and regulatory actions. Rumors about Binance exchange haunted by Japanese regulator for operating without license switched the community into panic mode even though the information is not confirmed yet. Digital assets are n the sell-off mode again, and ETH is not an exception. South Korea goes on with the crackdown on crypto markets as two regulatory bodies has launched inspections with domestic banks related to anti-money laundering procedures applied to cryptocurrency exchanges, according to Korean news outlet Yonhap. In January South Korea prohibited using anonymous accounts for cryptocurrency exchange customers to prevent digital assets from being used for money-laundering purposes. ETH/USD touched $509.00 during Asian hours before recovering to the current levels of $519.00. The upside momentum visible on the hourly chart is still too weak to transform into a good bullish run, The resistance created by 50 and 100-SMA (hour interval) around $550.00 is likely to stop the recovery for the time being. If this area is cleared, the price may go higher towards $590-$620. On the downside, break below $500.oo will be ominous, as it will open the way to March 18 low at $453.00. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in Continue reading >>

Ssu Accused Forklog Founder Of Money Laundering Via Cryptocurrency

Ssu Accused Forklog Founder Of Money Laundering Via Cryptocurrency

SSU Accused ForkLog Founder of Money Laundering via Cryptocurrency A loud statement of the Security Service of Ukraine has agitated the network: SSU exposed a Russian citizen in Odesa, who had organized the mechanism of legalizing money, using the cryptocurrency for the further transfer to the RF and the temporarily occupied territories of Donbas and annexed Crimea. As it turned out, the statement had been published because of the stir around the report about the search and property confiscation of the ForkLog founder Anatolii Kaplan, released yesterday. The Internet resource ForkLog specializes in the world cryptocurrency and blockchain news. Artem Afian, a defender of Anatolii, has commented the SSU statement on his Facebook page: SSU fires back by the obscure and impersonal press-release, where it mixes all the favorite ingredients: a bit of occupied territories, a part of the territorial integrity threat, a pinch of connections with Russian elite The case, upon which the search was made, was not connected with terrorism financing or territorial integrity. Not at all. This is a quite old case about the embezzlement from payment cards. Its either SSU goes off the reservation, investigating a not related cause within a single case, or it just cheats in its press releases Nonetheless, in the SSU announcement it states that during the pretrial investigation, SSU employees received the information about the personal connections of a trespasser with the leadership of some ministries and institutions of the Russian Federation, including the law enforcement ones; also, about his direct cooperation with the Chairman of the Board of Sberbank of Russia on the questions concerning the organization of the Russian system of money transferring using blockchain technology. However, Continue reading >>

Ice Agent: Cryptocurrencies Increasingly Used In Money Laundering - Coindesk

Ice Agent: Cryptocurrencies Increasingly Used In Money Laundering - Coindesk

ICE Agent: Cryptocurrencies Increasingly Used in Money Laundering Criminal organizations are increasingly using cryptocurrencies to launder money or otherwise pay for illicit activities, according to one U.S. Immigration and Customs Enforcement agent. Child exploiters, drug smugglers, illegal firearm sellers and intellectual property rights violators are all beginning to use cryptocurrencies for their transactions, said Matthew Allen , ICE's special agent in charge of Homeland Security Investigations (HSI). Allen testified to the Senate Judiciary Committee on modernizing anti-money-laundering laws to limit both laundering and terrorist financing on Nov. 28, explaining that virtual currencies are the newest major method for hiding criminal proceeds. "HSI agents are increasingly encountering virtual currency, including more recent, anonymity enhancing cryptocurrencies (AECs), in the course of their investigations. AECs are designed to better obfuscate transaction information and are increasingly preferred by [transnational criminal organizations]." Some exchanges are beginning to design services specifically to thwart tracking by use of mixers that anonymize virtual currency addresses, making it even more difficult to determine which user conducted a particular transaction, Allen said. The department has had some success in identifying criminals who use bitcoin, however. Allen pointed to the November 2016 arrest of Utah resident Aaron Shamo, who allegedly ran a Xanax and fentanyl manufacturer group. Shamo allegedly took his profits in bitcoin, and HSI seized approximately $2.5 million from him at the time. Another alleged fentanyl vendor, Pennsylvanian Henry Koffie, was arrested this past July and had $154,000 seized. Allen said Koffie sold nearly 8,000 orders of the dru Continue reading >>

Stay Away From Bitcoin And Ethereum They Are Complete Garbage - Marketwatch

Stay Away From Bitcoin And Ethereum They Are Complete Garbage - Marketwatch

If youve ever wondered what cryptocurrencies such as bitcoin, litecoin and ethereum are for, ask one of their legion of techie-libertarian fans. And its dollars to dogecoins (yet another one) that the conversation will go something like this: You: So whats the purpose of bitcoin BTCUSD, -2.26% ? Fan: The technology is absolutely amazing! Fan: Really, the blockchain technology is a total masterpiece, way ahead of its time! You: Yes, yes, I understand that. But what is it actually for? Fan: You dont understand! Its a completely decentralized money system! Totally revolutionary! You: Honestly, does it have a purpose? Any purpose at all? Cryptocurrencies, or cybercurrencies, which were in a massive financial mania until their sudden selloff that started last month , have two actual applications: online gambling and money laundering. Neither is the heart of a major business model. But thats it. And these, preposterously, are the fundamentals behind a mania that has driven these currencies up thirtyfold, so that today, in aggregate, the market for them is a staggering $82 billion. None of the defenders other arguments stack up. Online currencies are hardly a store of value when they can fall, say, about 30% in a week. Are they really protections against the ravages of inflation and monetary debasement imposed by wicked governments? If so, how come people who keep their money in bitcoin and ethereum and the like have experienced Weimar Republic levels of consumer-price inflation in the past month? That is, after all, what it means when the price of your currency plunges. Ethereum isnt just down 50% against the dollar since mid-June. Its down 50% against the potato, the sack of rice, the gallon of gasoline and the new car. Read: Ethereum has lost $17.5 billion in market value Continue reading >>

Dea Report: Bitcoin Used For Trade-based Money Laundering - Coindesk

Dea Report: Bitcoin Used For Trade-based Money Laundering - Coindesk

DEA Report: Bitcoin Used for Trade-Based Money Laundering A new report from the U.S. Drug Enforcement Administration (DEA) claims that bitcoin is being used to facilitate trade-based money laundering (TBML) schemes. Published by the Department of Justice, the report offers a broad overview of the U.S. government's efforts to police the illicit drug trade. Included in the study, however, is a segment on cryptocurrencies, which notably states that criminals who launder funds through trading operations are using bitcoin, particularly firms based in China. "...many China-based firms manufacturing goods used in [trade-based money laundering] schemes now prefer to accept bitcoin. Bitcoin is widely popular in China because it can be used to anonymously transfer value overseas, circumventing China's capital controls." The claim aside, the report doesn't contain any specific figures on how much money is being laundered through this means. But it does detail efforts to obtain bitcoin holdings through regulated exchanges, stating that China-based groups prefer using the cryptocurrency in an effort to bypass capital controls. Elsewhere in that section, the paper's authors argue that over-the-counter (OTC) bitcoin brokers are helping to facilitate these cross-border transactions a trend they write will continue. "The increasing use of OTC bitcoin brokers, who are capable of transferring millions of dollars in bitcoin across international borders, as part of a capital flight scheme is expected to continue to intertwine criminal money laundering networks with capital flight," the report states. Continue reading >>

669 Cryptocurrency-related Money Laundering Cases Reported In Japan

669 Cryptocurrency-related Money Laundering Cases Reported In Japan

669 Cryptocurrency-Related Money Laundering Cases Reported in Japan In a story by Nikkei Asia Review , the Japanese National Police Agency (NPA) issued a report showing that 669 cases were reported from April to December 2017. The high number of suspected cases was as a result of a law that was passed in Japan in April, which acknowledged bitcoin as a legal means of payment. The law also required all cryptocurrency exchanges to be legally licensed. The law also obligated the exchanges to report any transactions that aroused suspicion with regards to money laundering activity or drug trafficking. The move was aimed at ensuring that cryptocurrency was not used for illegal financial activities. Although the NPA gave few details on the mechanisms used to filter what constituted suspicious transactions, it is suspected that the majority of cases reported involved those with questionable transactions that were repeated regularly within a short period of time. A report appearing in Coindesk indicated that the high number was as a result of a sustained effort by the government to probe cryptocurrency exchanges, after a theft of about $500 million worth of NEM tokens from Coincheck in January. The government has been on the front foot to ensure investors are protected from such heists, hence the rigorous licensing process. Cryptocurrencies like Bitcoin, Ripple and Ethereum allow users to make quick and easy trades while remaining anonymous. Their involvement in illegal dealings has been on the rise, which has led to massive government crackdown to bring the culprits to justice. At the moment, there are 16 registered cryptocurrency exchanges in Japan under the new legal regime. However, there are still exchanges that are yet to be approved which are nonetheless operational, incl Continue reading >>

Icos May Be A Boon To Money Laundering, Regulators Are Watching Bitcoin, Ethereum And Other Cryptocurrencies

Icos May Be A Boon To Money Laundering, Regulators Are Watching Bitcoin, Ethereum And Other Cryptocurrencies

All told, start-ups have raised more than a billion dollars this year in coin sales and in recent months, just four crypto projects have raised over $660 million combined , according to Smith + Crown, a blockchain research and consulting group. Digital currencies are pseudonymous, decentralized and encrypted, making it harder to track each of the transactions made, and the individuals behind them. Theoretically, anyone with an internet connection and a digital wallet can be part of a coin sale event. That, many worry, leaves plenty of room for people to launder money or finance terrorism activities and engage in other fraudulent behaviors especially in countries where corruption is rampant. Regulators in the United States and Singapore have in recent weeks highlighted the risks of money laundering and fraud that investors face when buying into a digital token sale. On August 1, Singapore's financial regulatory body and central bank, the Monetary Authority of Singapore (MAS), said in a missive that ICOs are "vulnerable to money laundering and terrorist financing risks due to the anonymous nature of the transactions, and the ease with which large sums of monies may be raise in a short period of time." Meanwhile, the U.S. Securities and Exchange Commission (SEC) provides guidelines on its website for investors to consider before participating in token sales. Some of the key points the SEC asks potential buyers to consider are ways to identify fraudulent investment schemes. While terrorism financing is not as prevalent in Asia Pacific as compared to the Middle East or North Africa, experts told CNBC that money laundering through cryptocurrencies is a major concern among authorities. "It is an anonymous platform and you can get involved, get engaged, transfer value ... you Continue reading >>

Bitcoin Laundering Less Than One Percent Of All Transactions

Bitcoin Laundering Less Than One Percent Of All Transactions

Bitcoin Laundering Less Than One Percent of All Transactions Recent reports indicate that less than one percent of Bitcoin transactions involve money laundering or illicit activities. A recent report from the joint Bitcoin analysis team of FDD and Ellicit, a Bitcoin forensics company, indicates that less than one percent of all Bitcoin transactions involve money laundering . The report, written to help analyze the flow of funds and the danger of money laundering , has indicated that money laundering isnt nearly the problem some critics of cryptocurrency believe. The report states: The amount of observed Bitcoin laundering [is] small and darknet marketplaces such as Silk Road and, later, AlphaBay are [generally] the source of almost all of the illicit Bitcoins laundered through conversion services. The report also indicates that the vast majority of illicit transactions using Bitcoin were processed in Europe, receiving more than five times as many illicit transactions as North America. The report suggests that the best way to combat such illicit activity is through more stringent anti-money laundering (AML) measures. The report states that the only way to manage the illicit transaction is for Financial authorities in all jurisdictions [to] increase AML enforcement. Continue reading >>

Ways To Clean Dirty Ethereum?

Ways To Clean Dirty Ethereum?

Quote from: Ethix on June 22, 2017, 12:20:33 AM What ways are there to clean dirty Ethereum? Is converting to Zcash and sending it with Z the best way? Do they use shapeshift to avoid exchanges? I'm curious to learn how the bad guys do it Probably convert into other currencies like Zcash or Monero by using an exchange or converting to BTC and using a bitcoin mixer. Especially given some of the large dumps that have been happening. Quote from: Ethix on June 22, 2017, 01:46:42 AM Shapeshift only supports small amounts and from my experience, has heavy fees. It would be hard just to convert it to Zcash without going through an exchange. In all the instances of people stealing some coins that I've heard of, they've all used exchanges to convert to something else. They seem to plan it all out ahead of time so they can get in and out as fast as possible so they can lower the risk of getting shut down at the exchange. Quote from: Ethix on June 22, 2017, 01:46:42 AM Shapeshift only supports small amounts and from my experience, has heavy fees. It would be hard just to convert it to Zcash without going through an exchange. In all the instances of people stealing some coins that I've heard of, they've all used exchanges to convert to something else. They seem to plan it all out ahead of time so they can get in and out as fast as possible so they can lower the risk of getting shut down at the exchange. Yes, and specially because it can be hard or impossible to trace once out of the exchange's wallets. I doubt that if the thief uses a different address to send the coins/tokens out of the exchange that there will be a chain linking the entry address and the exit address. I believe it all goes to some pool of wallets there. Quote from: Ethix on June 22, 2017, 01:46:42 AM Shapeshift Continue reading >>

More in ethereum