Cryptocrime Digest (10 August 2020)
A weekly summary of news and commentary about criminal activity related to cryptocurrencies brought to you by Merkle Science.
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Our Top 5 Articles From the Week
Cryptocurrency Exchange Offers ‘$400 Million’ Reward for Return of Stolen Bitcoin
Cryptocurrency exchange Bitfinex says it can pay out the equivalent of $400 million for the return of bitcoin stolen in a 2016 heist. The Hong Kong-based platform — used to trade digital currencies — said in a statement the reward was available for anyone who puts the company in contact with the culprits, but it is also willing to barter a deal with the hackers’ directly.In August 2016, hackers breached Bitfinex security systems and made more than 2,000 transactions involving just under 120,000 bitcoin, worth around $70 million at the time. It was the second heist in two years after a 2015 attack lost about $400,000. (Newsweek)
Ransomware: The tricks used by WastedLocker to make it one of the most dangerous cyber threats
One of the most dangerous families of ransomware to emerge this year is finding success because it’s been built to avoid anti-ransomware tools and other cybersecurity software, according to security company researchers who have analysed its workings. WastedLocker ransomware appeared in May and has already developed notoriety as a potent malware threat to organisations by encrypting networks and demanding a ransom of millions of dollars in bitcoin in exchange for the decryption key. (ZDNet)
GandCrab ransomware hacker arrested in Belarus
Law enforcement in Belarus has announced the arrest of a 31-year-old man who is alleged to have extorted more than 1000 victims with the infamous GandCrab ransomware in 2017 and 2018. He apparently demanded payments ranging from $400 to $1500 in Bitcoin. Unlike more targeted attacks where crooks break into networks first and directly infect them with ransomware later, the unnamed suspect is said to have gone after victims by the more traditional route of spamming out booby-trapped emails across the globe. (Naked Security)
Job seeker roped into cryptocurrency scam by fake company
Job-related fraud reports have gone up during the pandemic. One job-seeker comes forward about a cryptocurrency scam that had her inadvertently involved in what appears to be money laundering. (CBC News)
OneCoin lawyers persuaded UK’s FCA to take down scam warning
The UK’s financial watchdog removed its warning about alleged scam cryptocurrency OneCoin following pressure from the project’s lawyers. Two witnesses interviewed on BBC podcast “The Missing Cryptoqueen” revealed that OneCoin had employed a top law firm and reputation management company to pressurize the FCA. Three OneCoin principles have been indicted in the US on charges that include money laundering. (Decrypt)
Merkle Science News
Merkle Science Joins VerifyVASP Alliance
VerifyVASP, a Singapore-based “Travel Rule” solution provider, announced on Aug. 7 that 12 virtual asset service providers (VASPs) and related industry organizations have joined the company’s VerifyVASP alliance. Introduced by the Financial Action Task Force last year, the Travel Rule is an anti-money laundering initiative that requires VASPs to share and report relevant transaction information.
VerifyVASP alliance partners include a wide range of blockchain and virtual asset service providers including exchanges, fintech platforms, and data analysis firms: Merkle Science, Bitkan, Indodax, Legatus Global, Pintu, PundiX, Skybit, Sparrow, Upbit APAC, VCC, Zipmex, and the Indonesian Blockchain Association.
Upcoming Webinar: Blockchain Spring Series — Financial Services Applications
On Thursday, 27th August Merkle Science will be co-hosting a webinar panel alongside RHTLaw Asia and the Singapore University of Social Sciences for a discussion on the application of blockchain technology in financial services.
Register here.
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.
