Cryptocrime Digest (7 September 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
Elon Musk Confirms ‘Serious’ Russian Bitcoin Ransomware Attack On Tesla, Foiled By The FBI
Elon Musk has confirmed the electric car-maker was targeted by a ransomware hacker demanding millions of dollars in bitcoin. The Tesla CEO said in a tweet that an employee at a Tesla factory in Nevada was offered $1 million and an upfront payment of 1 bitcoin to install ransomware software on Tesla’s computer network. However, the employee didn’t carry out the plan and instead alerted other Tesla staff who contacted the FBI. The FBI arrested Egor Igorevich Kriuchkov, a 27-year-old Russian man, on August 22 in Los Angeles. Kriuchkov was charged last week and faces up to five years in prison for his role in the scheme if found guilty. [Forbes]
Major South Korean Crypto Exchange Raided by Police in Alleged $25.2M Fraud Case
South Korean police raided the country’s largest cryptocurrency exchange, Bithumb on September 2 as part of an investigation of fraud allegedly committed by the organization’s main shareholder. With the recorded number of visitors to the platform touching 4.11 million between May and July, Bithumb is the largest exchange in the country. According to a local publication, the Seoul Metropolitan Police Agency’s Intelligent Crime Investigation Unit “searched and seized premises” used by the exchange as headquarters in Gangnam-gu, Seoul. [Bitcoin.com]
The US Moves to Seize $400M From Convicted OneCoin Money Launderer
The U.S. Department of Justice (DoJ) is seeking to confiscate nearly $400 million from the attorney who helped accused crypto Ponzi scheme OneCoin launder hundreds of millions of dollars. The U.S. Attorney for the Southern District of New York asked the U.S. District Court judge responsible for sentencing Mark Scott — convicted last November — to impose a “forfeiture money judgment,” in a submission Monday. [Coindesk]
AlphaBay darknet market moderator sentenced to 11 years in Jail
One of the men responsible for moderating content on the now-defunct AlphaBay darknet market will be in jail until 2031. According to a Sept. 1 statement from the U.S. Department of Justice, 26-year-old Bryan Connor Herrell was sentenced to 11 years in prison for conspiring to engage in a racketeer-influenced corrupt organization, for his role as a moderator on AlphaBay. The platform was one of the largest online marketplaces for drugs as well as guns, credit card data, and other illegal items, paid for with cryptocurrency. [Cointelegraph]
California Man Pleads Guilty in $722 Million Crypto Fraud Plot
A California man pleaded guilty to a cryptocurrency mining fraud of at least $722 million that prosecutors said amounted to a “high-tech Ponzi scheme.” Joseph Frank Abel, of Camarillo, admitted he conspired to offer and sell unregistered securities and subscribed to a false tax return as part of the BitClub Network, the U.S. said in a statement Thursday. [Bloomberg]
Merkle Science News
Upcoming Webinar: Custody, Compliance and Risk Transfer — The Three-Pronged Approach to Protecting Digital Assets
Join us for a webinar panel discussion this Thursday, 10th September at 15:00 SGT (UTC+8) that will look at the the three pronged approach to protecting digital assets: custody, compliance and risk transfer. Panelists include:
- Mriganka Pattnaik, CEO and Co-Founder, Merkle Science
- Alexandre Kech, Chief Executive Officer & Co-Founder, Onchain Custodian
- Rory Young, Assistant Vice President, Global Cyber and Technology, Global Professional and Financial Risks, Lockton.
- Thomas Glucksmann, CEO & Founder, Asia Pacific Security.
Topics to be discussed:
- Brief history of digital asset security solutions
- Major security challenges and risks facing digital asset service providers
- The role of custodians and the current state of digital asset custody
- The intersection between AML and security compliance for digital asset businesses
- Insurance offerings for the digital asset ecosystem
- Why a three pronged approach is needed to protect digital assets
Following the panel discussion there will be an opportunity for audience Q&A.
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.
