Cryptocrime Digest (07 December 2020)
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Our Top 5 Articles From the Week
U.S. Prosecutors Extradite One of Five People That Ran a Crypto Mining Ponzi Scheme
U.S. prosecutors have extradited one of the five individuals that ran a cryptocurrency mining Ponzi scheme, the Department of Justice (DOJ) announced Monday. Gutemberg Dos Santos, who has dual citizenship in Brazil and the United States, was extradited from Panama on November 25. Prosecutors indicted Dos Santos and four other individuals in connection to coordinating a “fraud and money laundering ring,” where they allegedly promised future investors rewards for investing in a membership-based program called AirBit Club. [The Block Crypto]
Nearly $100 Million in Bitcoin Tied to 2016 Bitfinex Hack Has Been Moved
$96.7 million in bitcoin stolen from crypto exchange Bitfinex in a 2016 hack was moved on Monday. The 14 separate transactions, tracked by Twitter-based alert service Whale Alert, show that 5045.48 BTC in total was transferred. The movements come more than two months since the most recent such occurrence when more than $26 million in bitcoin at then-current prices was transferred. Bitfinex was hacked in August 2016, and nearly 120,000 BTC was stolen during that security breach. That incident led Bitfinex to socialize the losses among its user base and later create a token, dubbed BFX, to reimburse those who experienced funds haircuts. [The Block Crypto]
‘Hacker Collective’ Member Sentenced to Nearly 8 Years
A North Carolina man who was part of a “hacker collective” and involved in threats to dozens of school districts and other crimes was sentenced to nearly eight years in prison Monday, officials said. Timothy Dalton Vaughn, 22, was a member of “Apophis Squad,” which prosecutors described as a group of computer hackers and swatters, and went by online names that included “WantedbyFeds.” He and others sent threats to more than 80 school districts; Vaughn helped report a fake hijacking of a London-to-San Francisco plane; he also tried to extort around $20,000 in the cryptocurrency bitcoin from a California business and when he was refused he made the company’s website inaccessible, federal prosecutors said. (NBC News)
Australian Bitconnect Promoter Is Charged Over a Failed Business
The former Australian national representative of BitConnect, John Louis Anthony Bigatton is charged for taking part in a crypto Ponzi scheme worth several billion dollars. The news was announced on Tuesday by the Australian Securities and Investments Commission (ASIC) according to which Bigatton is blamed for various counts of financial crimes and as a result, he faces six charges with penalties of between 2–10 years in prison. [Bit News Today]
‘You Have 24 Hours’: Hackers Demand $1m Ransom From Israeli Firm
The hackers behind an attack on an Israeli insurance firm this week published Thursday a ransom note. The Black Shadow group demanded that Shirbit pay out almost a million dollars within 24 hours or have the information stolen from them sold online. The hackers demanded 50 bitcoin ($950,000) and threatened to double and then triple the amount should the Israeli company refuse to pay. As of now, no amount has been transferred, according to the bitcoin address the hackers supplied, which is currently still empty. [Haaretz]
Merkle Science News
MiCA: A Guide to the EU’s Proposed Markets in Crypto-Assets Regulation
A detailed new digital finance package (DFP) was introduced by the European Commission (EC) on 24 September 2020 which, if it is implemented in its current form, would change the European economy over the coming decades. It is known as Markets in Crypto-Assets Regulation (MiCA). In this article, Claire Cummings from Cummings Pepperdine has provided an easy-to-understand overview of the upcoming MiCA regulation.
Hack Track: Axion Network
On Nov. 2, the Axion Network launched its new token, known as AXN. A few hours after the high-profile launch, however, it became clear that the token has been breached. An unauthorized actor unexpectedly minted 79 billion AXN and unloaded them on the market. The price collapsed in excess of 99%, netting the attackers 1300 ETH — worth an estimated $500,000.
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.
