Cryptocrime Digest (26 October 2020)
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Our Top 5 Articles From the Week
Bitcoin Critic Peter Schiff’s Bank Under Spotlight in Global Tax Probe
A Puerto Rico-based bank founded by gold bug and long-time bitcoin skeptic Peter Schiff is under investigation over suspicions it facilitated tax evasion for “high-risk” clients. According to various media reports, Schiff’s Euro Pacific Bank has become the focus of a major global tax evasion investigation dubbed “Operation Atlantis.” Hundreds of account holders at the bank, including 100 Australians considered “high risk,” are now being investigated over possible tax evasion and money laundering. [Coindesk]
FinCEN Fines Bitcoin-Mixing CEO $60M in Landmark Crackdown on Helix, Coin Ninja
Larry Dean Harmon, the Helix and Coin Ninja crypto-tumbling chief who in February was arrested for allegedly mixing bitcoin for criminals must pay $60 million in civil penalties, prosecutors at the Financial Crimes Enforcement Network (FinCEN) demanded Monday. Harmon’s bitcoin mixing services allegedly laundered tens of millions of dollars in crypto for darknet markets including Abraxas, Agora, Hansa, Hydra, and Wall Street Market. [Coindesk]
Trial of Russian in Alleged Bitcoin Fraud to Wrap in Paris
French prosecutors requested on Friday a 10-year jail term and a fine of 750,000 euros ($888,634) against Alexander Vinnik, who is accused of being behind a 135 million-euro ($160 million) fraud campaign that used ransomware and the cryptocurrency bitcoin. The 41-year-old Russian, who is also wanted in the United States and Russia, is facing in France charges of extortion, money laundering, and criminal association. [Associated Press]
20 Arrested in Qqaazz Crypto Money Laundering Syndicate: Europol
Law enforcement agencies in Australia, the United States and Europe have arrested some 20 individuals thought to be members of a gang accused of running an international money laundering scheme involving BTC. The alleged scammers are reported to be part of a gang known as QQAAZZ, reportedly involved in extensive money laundering efforts through BTC and other cryptocurrencies. [Coingeek]
New Zealand Man Charged With Money Laundering via Crypto and Luxury Cars
An Auckland man arrested as part of a major asset seizure operation faces a slew of money laundering charges, some of which allege he was given thousands of dollars to purchase cryptocurrency. The 40-year-old man faces a total of 30 charges, the bulk of which accuse him of money laundering. He appeared in the Auckland District Court this afternoon where he was granted interim name suppression by Community Magistrate Dianne Hale. [Coindesk]
Merkle Science News
Upcoming Event Alert! Stories Behind Crypto Hacks: Why Hackers Get Caught
Join our CEO, Mriganka Pattnaik, on Crypto Curry Live! chat on October 28 from 04:00 to 05:00 PM BST. The event is focused on the stories behind the biggest crypto hacks, and what the hackers did wrong that led to them getting caught.
Merkle Science Partners with Notabene to Help VASPs Comply with FATF’s Travel Rule
Merkle Science and Notabene have partnered to help VASPs comply with the Travel Rule and local anti-money laundering regulations. Notabene provides a comprehensive travel rule solution for VAPSs, allowing them to easily perform due diligence on counterparties and securely share customer information. Through a product integration with Merkle Science, compliance officers at VASPs who use both services will be able to better assess the risks of counterparty VASPs and blockchain wallets.
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.
