Month: January 2023

US Investigators Subpoena Hedge Funds in Binance Money-Laundering Probe: Report

Money Laundering
Authorities have not brought charges against the company, which has faced intense scrutiny following competitor FTX’s collapse, the Washington Post reported. Federal prosecutors are investigating the relationship between Binance and U.S.-based hedge funds as part of a broader investigation into the cryptocurrency exchange’s possible skirting of money-laundering guardrails, according to a report by the Washington Post. Heading the investigation is the U.S. Attorney’s Office for the Western District of Washington in Seattle, which, in recent months, has sent subpoenas to firms requesting records of their dealings with Binance, the Post reported, citing two people who had reviewed one of the…

Most Criminal Cryptocurrency Funnels Through Just 5 Exchanges

Digital Currencies, Money Laundering
The crypto money-laundering market is tighter than at any time in the past decade, and the few big players are moving a “shocking” amount of currency. FOR YEARS, THE cryptocurrency economy has been rife with black market sales, theft, ransomware, and money laundering—despite the strange fact that in that economy, practically every transaction is written into a blockchain’s permanent, unchangeable ledger. But new evidence suggests that years of advancements in blockchain tracing and crackdowns on that illicit underworld may be having an effect—if not reducing the overall volume of crime, then at least cutting down on the number of laundering…

UK imposes further coordinated sanctions on Iranian regime officials

Sanctions
The UK is placing further sanctions on regime officials in Iran today, including on Deputy Prosecutor General Ahmad Fazelian. These sanctions, alongside designations by the European Union and the United States, demonstrate the international community’s unified condemnation of the horrific violence the Iranian regime is inflicting on its own people, including the execution of dual British-Iranian national Alireza Akbari. Alongside the Prosecutor General in Iran, whom the UK sanctioned last week, Fazelian is responsible for a judicial system characterised by unfair trials and egregious punishments, including use of the death penalty for political purposes. Last week Alireza Akbari tragically became a…

More MEPs could lose immunity in corruption probe, president says

Bribery, Corruption
The EU says it will launch proceedings to remove parliamentary immunity from two MEPs implicated in an ongoing corruption scandal. Parliamentary President Roberta Metsola said she had taken the move after a request from Belgian police. But her statement did not name the MEPs involved. The scandal erupted last month after one MEP and three others were arrested on charges of corruption and money-laundering. While authorities have not named the country behind the bribery network, numerous EU sources have accused Qatar of running the operation. But the Gulf state has strenuously denied any claims of misconduct as unfair and “gravely…

Mobile phone fraud: ‘They stole £22,500 using my banking app

Fraud
A pickpocket took Jacopo de Simone’s mobile phone and used his banking apps to steal £22,500. He said his bank investigated but found him liable for the losses so he is still fighting to get the money back. He is just one victim of the growing threat of mobile phone fraud and banks need to do more to tackle it, according to charity the Fraud Advisory Panel. UK Finance, which represents 300 banks, said the industry was constantly monitoring fraud threats. Criminals are stealing mobiles not for the device but to try to access finance apps to steal thousands of…

UK Treasury Considers Plan for Digital Pound

Digital Currencies
The government is considering introducing a “digital pound”, the economic secretary to the Treasury has told MPs. The UK was committed to becoming a world crypto hub, Andrew Griffith said. And the government was “a long way down the road… to establish a regime for the wholesale use, for payment purposes, of stablecoins”. Stablecoins are designed to have a predictable value linked to traditional currencies or assets such as gold. The currency, for use by households and businesses, would sit alongside cash and bank deposits, rather than replacing them. ‘Game-changing technology’A public consultation on the attributes of a digital pound…

U.S. to Designate Russia’s Wagner Group as “Transnational Criminal Organisation”

Sanctions
US will apply designation in the coming days, says national security council spokesman, imposing new sanctions on the group The US will designate the Russian mercenary group Wagner as a “significant transnational criminal organization”, imposing further sanctions on the military contractor which has been aiding Moscow in its invasion of Ukraine. The White House national security council spokesman, John Kirby, announced on Friday that the treasury will apply the new designation in the coming days, putting it in the same category as Italian mafia groups and Japanese and Russian organized crime. The designation will allow the wider application of sanctions…

Former L.A. Council Member Jose Huizar Pleads Guilty in Corruption Case

Corruption, Prosecutions
Former Los Angeles City Councilmember Jose Huizar pleaded guilty Friday to charges of racketeering and tax evasion, admitting that he extorted at least $1.5 million in bribes from real estate developers. Under a plea agreement filed Thursday in federal court in Los Angeles, Huizar acknowledged that sweeping corruption allegations that he has denied for years were true. “Are you pleading guilty because you’re in fact guilty?” Judge John F. Walter asked Huizar in court Friday morning. “Yes, your honor,” Huizar responded. Huizar’s unexpected capitulation caps a brutal downfall for a man who was born into poverty on a Mexican ranch,…

Fraudsters Sentenced for £21m Loss in Cryptocurrency

Digital Currencies, Fraud, Prosecutions
Four offenders were sentenced today (13 January 2023) for fraudulently obtaining and laundering Bitcoin and other cryptocurrency worth tens of millions of pounds from an Australia-based cryptocurrency exchange. Stephen William Boys, 58, Kelly Caton, 44, Jordan Kane Robinson, 23, and James Austin-Beddoes, 27, were found guilty of fraud, converting and transferring criminal property at Preston Crown Court and then sentenced to a total of 15 years. All four were associates of James Parker, who masterminded the conspiracy from his home in Blackpool over a three-month period between October 2017 and January 2018. James Parker identified and then exploited a loophole…

Thailand’s SEC issues rules on management of digital wallets for custody of digital assets and keys

Digital Currencies, Regulation
The Securities and Exchange Commission (SEC) has issued regulations requiring digital asset business operators that provide custody of clients’ digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys* and ensure safety of clients’ assets. The regulations cover the following requirements: (1) Policy and guidelines for overseeing risk management and management of digital wallets and keys as well as communication to clarify such policy, action plans and procedures, work supervision and internal control to ensure compliance with the policy; (2) Policy and procedures for designing, developing and managing digital wallets as well…

FCA penalises Al Rayan Bank PLC for anti-money laundering failures 

Money Laundering, Prosecutions
The Financial Conduct Authority (FCA) has fined Al Rayan Bank PLC (Al Rayan) £4,023,600 for failing to put in place adequate anti-money laundering (AML) controls. Between 1 April 2015 and 30 November 2017, Al Rayan allowed money to pass through the bank and be used within the UK without carrying out appropriate checks. The firm failed to adequately check its customers’ Source of Wealth and Source of Funds when it was required to make sure the money was not connected to financial crime.  The failings were made worse by the lack of proper training provided to staff about how to handle…

St. Louis Man Sentenced to 19+ Years for Money Laundering

Money Laundering, Prosecutions
A St. Louis man was sentenced to 19 years and seven months in prison after admitting to his involvement in a methamphetamine operation in southern Illinois. Terrence Thompson, 35, pled guilty to one count of conspiracy to launder monetary instruments. According to court records, Thompson conspired with the co-defendants to distribute more than 500 grams of methamphetamine in the Southern District of Illinois. Law enforcement conducted a search warrant on Thompson’s residence and recovered more than 10 kilograms of methamphetamine. Members of the conspiracy utilized various payment methods to deal the illegal narcotics, including CashApp, cashier’s checks, bank transfers and…

New York’s Financial Regulator Takes Aim at Firms Co-Mingling Crypto Funds

Digital Currencies, Regulation
New York’s chief financial regulator is set to release new guidance on Monday dictating that companies separate customers’ crypto assets from their own, after alleged co-mingling of funds at collapsed crypto exchange FTX and its affiliated trading firm Alameda Research led to hefty losses for clients. The New York State Department of Financial Services (NYDFS), which leads one of the few state agencies with a regulatory system in place for cryptocurrency companies, will also stipulate that state-regulated companies disclose to customers how they account for clients’ digital currency. The guidance is the latest in a series of crypto-related directives NYDFS…