Cryptocrime Digest (02 November 2020)
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Our Top 5 Articles From the Week
EU Rejects Petition for Tax-Based Crypto-Crime Victims’ Fund
The European Union Parliament’s commission has rejected a petition that proposed to create a superfund for the victims of cryptocurrency-related crimes, according to the agency’s official reply. Filed earlier this year by UK attorney and solicitor Jonathan Levy, the petition proposed to introduce a “virtually unnoticeable” tax for EU-based cryptocurrency nodes amounting to 0.0001 cents per Euro. The resulting funds were to go toward the creation of a special fund for the victims of cryptocurrency-related crimes, Levy explained. [Decrypt]
John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges
Former U.S. presidential candidate and antivirus software tycoon John McAfee is in Spanish prison awaiting his extradition trial after he was arrested in Spain. After several paragraphs claiming the charges against him are politically motivated and the result of his principled stand against the Sixteenth Amendment to the U.S. constitution (that’s income tax one), McAfee gets down to business. You see, he really wants you to know about the $GHOST stablecoin that you just have to believe is the next big thing. “My only remaining project is $GHOST,” writes McAfee. “When our private stablecoin is released, it will revolutionize crypto transactions.”t. [news.bitcoin.com]
$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China
A Chinese court has confirmed the sentencing of the masterminds behind the 7.7 billion yuan Chinese Ponzi scheme Wotoken, which had over 715,000 investors. Wotoken Scammers Sentenced to Prison The Intermediate People’s Court of Yancheng city, Jiangsu province, denied an appeal by four convicts involved in the billion-dollar Ponzi scheme Wotoken on Tuesday, several local media reported. The court upheld the original sentences for Gao Yudong, Li Qibing, Wang Xiaoying, and Tian Bo who were dissatisfied with their original sentencing and filed an appeal. [news.bitcoin.com]
UK Police Find No Crime in Alleged $3M Crypto ‘Staking’ Scam
Investors who say they lost hundreds of thousands of British pounds in an alleged cryptocurrency fraud have had no luck persuading the police that there was, in fact, a crime committed. According to the allegations, investors were told to make staking commitments for five months to receive a 100% return, but as the period was ending they were told they’d have to extend to 12 or 24 months. Staking is a way of supporting some blockchain networks and earning rewards by committing funds for a period of time. [Coindesk]
Two US Nationals Charged With Sim-Swap Cryptocurrency Theft
The US District Court for the District of Maryland has charged 19-year-old Kyell A. Bryan of Pennsylvania and 21-year old Jordan K. Milleson of Maryland in connection with an alleged phishing fraud and SIM card scheme that led to a theft of thousands of dollars’ worth of cryptocurrency. According to the US. Attorney for the District of Maryland, Milleson hacked into financial and electronic accounts and computer networks and Bryan participated in helping such deals succeed. [Coindesk]
Merkle Science News
Pundi X Set to Work With Merkle Science to Prevent Money Laundering
Pundi X is working with Merkle Science to prevent the illicit use of cryptocurrencies. Merkle Science’s solutions will enable the tracking of origin and destination of funds and help Pundi X in creating a safer environment for cryptocurrency transactions.
Merkle Science Becomes Official Sponsor of Access Code of Practice to Help Ensure Transparency in Cryptocurrency Use Cases
Merkle Science is now an associate sponsor of Code of Practice, launched by the Association of Crypto-Currency Enterprises and Start-ups Singapore (ACCESS). Facilitated by the Monetary Authority of Singapore (MAS) and developed in consultation with The Association of Banks in Singapore (ABS), the Code of Practice is a ground-up collaborative effort by the industry to develop a set of guidelines to help digital asset players strengthen regulatory compliance and enhance conduct.
About Merkle Science
Merkle Science provides blockchain transaction monitoring and intelligence solutions for cryptoasset service providers, financial institutions and government agencies to detect, investigate and prevent the use of cryptocurrency for money laundering, terrorist financing, and other criminal activities. Merkle Science is headquartered in Singapore with offices in Bangalore, Seoul, and Tokyo and backed by Digital Currency Group, Kenetic, SGInnovate, and LuneX.
