Is It Legal Sid’s Post

Don't miss the upcoming The Washington Outsider #Report on Coalition Radio discussion with veteran #cybersecurity lawyer Tor Ekeland who specializes in defending hackers in trials and on appeal. The particular case we will be discussing tests the limits of law in handling tech innovation, in this case, the issues that involve identification in #cryptocurrency cases. Tor Ekeland is the defense lawyer for Roman Sterlingov, a Russian-Swedish dual national who was nabbed in the US for allegedly masterminding and operating a criminal scheme that involved laundering Crypto through anonymized wallets linked to TornadoCash. The trial ultimately ended in the guilty verdict for the defendant; an appeal is now in the works - and we get to discuss a defense lawyer's perspective on a hot button issue that is primarily being narrated by the law enforcement in assorted classes on cryptocurrency and the rule of law. We discuss an assortment of pertinent questions such as: * how does one end representing hackers? * What are the reasons why the law enforcement zeroed in on Sterlingov, an early crypto investor and by no means a top level player in the field? * What are some of the concerns about arriving at a correct identity in the current digital forensics process? * Why are only a couple of companies dominating the chain of custody in #blockchain discussion? What are some of the concerns about the imperfections in the process and the monopoly of this field? What are some of the challenges for a defendant in a federal criminal case? * What were some apparent mistakes made by the law enforcement in the investigation? Why was there a lack of cooperation with the local law enforcement in #Sweden on obtaining access to potentially exculpatory evidence? * Are clients in #cryptocurrency cases facing a particular type of bias? * Did Sterlingov's unusual background and travel pattern as a digital nomad make him a soft target for the law enforcement? * Do jurors favor prosecution in complicated tech and financial cases, and if so, what can be done to overcome this challenge and build a better narrative? * Did the US government take the easy way out? Why did it only target Sterlingov and failed to look for other alternative administrators in the scheme, who could have helped build a major RICO case? ... and so many other questions that may not normally occur because this is such a unique situation and in some ways, a first case of its kind. Regardless of whether you support cryptocurrency or not, the way US government handles innovations in technology may impact people from all walks of life... you definitely want to make sure the authorities know what they are doing! #etherium #FBI #nationalsecurity #moneylaundering #conspiracy #lawandorder #justice #criminallaw

America.gov of Antitrust & Another Asinine BadActor, Bankruptcy Case & Claims, BigTech Billionaire, Bitcoin Boy & BS, Bytes the Criminal CRYPTO & CYBER, Data.gov, Digital.gov, DOJ Domino's & DumbAss Dust! IGWT & More on the Way, so Stay 'TIMES UP' & Tuned in/in Wash. D.C. AI.gov, America.gov, BOP.gov, CFTC.gov, CISA.gov, Congress.gov, Defense.gov, FBI.gov & FTC.gov, House.gov, IC3.gov, IRS.gov, Justice.gov, MentalHealth.gov & MyMoney.gov, Public.Cyber.mil, Regulations.gov, SEC.gov, Section230.us, Senate.gov, SupremeCourt.gov, SurgeonGeneral.gov, Trade.gov, USA.gov & USCourts.gov, USPTO.gov, Whistleblowers.gov @ Youth.gov 🏛⏰️🏛⏰️🏛

🌪️ In what has to be the most underreported story in the #cryptoverse at the moment, the trial of Bitcoin Fog's Roman Sterlingov continues this week in a DC federal courtroom. On April 27, 2021 Sterlingov, a 32-year-old dual Swedish Russian national, was arrested, as he passed through LAX, on money laundering and operating an unlicensed money transmitting business charges related to his role as administrator of Bitcoin Fog, the longest-running Bitcoin mixing service on the darknet. According to the charges in the criminal complaint, of the $336 million Bitcoin Fog laundered over a decade, at least $78 million passed through the mixing service to darknet markets like Silk Road, Agora, and AlphaBay. In February 2020, Larry Harmon was arrested for his operation of Helix, like Fog, a darknet-based mixing service. Harmon was charged with exactly the same crimes as Sterlingov - money laundering and operating without a license. Harmon pled guilty to money laundering conspiracy in August 2021, and last week he testified for the government in the case against Sterlingov. This is the second high profile witness called by prosecutors. Last week, the government called Bitfinex hacker Ilya Lichtenstein to the stand to discuss his use of both Helix and Fog in laundering hacked funds. Almost 3 years ago, upon the arrest of Sterlingov, I wrote a piece for TRM Labs Insights comparing the two cases and discussing what Sterlingov could learn from the arguments made in Harmon's case. Pretty interesting to see Harmon testify against Sterlingov last week. Check out "Mixing It Up: Does DOJ's case against Helix preview what's next for Bitcoin Fog and the future of crypto mixing?" in the comments 👇

A US court has made a significant decision regarding Tornado Cash, a cryptocurrency mixing platform. The court ruled that Tornado Cash's immutable smart contracts cannot be sanctioned under the International Emergency Economic Powers Act (IEEPA). This decision is important because it distinguishes between the code itself and its misuse. The court agreed that immutable smart contracts do not constitute "property" and therefore fall outside the scope of IEEPA. However, this ruling does not exempt individuals or entities that misuse Tornado Cash from legal liability. Those who employ the platform for illicit purposes can still be held accountable. This decision has implications for the cryptocurrency industry, particularly in the areas of privacy and national security. It highlights the need for clearer guidelines on the use of emerging technologies. The ruling may also lead to renewed debate over the boundaries of regulatory oversight. In simple terms, the court's decision means that the code itself cannot be sanctioned, but those who use it for illegal activities can still be prosecuted. This ruling raises questions about how US law addresses modern technologies and may inspire stronger legislative efforts or lead to renewed debate over the boundaries of privacy and national security. #CyberCrime #CyberCrimeLawyer #Lawyer #Advocate #CyberCrimeAdvocate #India #Cyber #Crime #Legal #p2p #Trading #Lien #Hold #Stop #BankAccount #Crypto #Bitcoin #CryptoCurrency #Binance #WaziX #KuCoin #ByBit #Telegram #AccountFreeze #CyberCell #CriminalAdvocateIndia #CriminalAdvocate #SupremeCourtAdvocate #SupremeCourt #Scam #CyberScam #Fraud #RecoverScamMoney #BankFreeze #Defreeze #FrozenAccount #LIENRemoval #UNLIEN #LIEN #MHALIEN #MHAFREEZE #NCCRPLIEN #NCCRPFREEZE #AccountDefreeze #CyberCellHelp #CyberFreeze #CyberCrimeCellFreeze #PoliceFreeze #DigitalSecurity #FinancialFreeze #OnlineAccountRecovery #CyberSecurityTips #AccountReactivation #DigitalFreedom #AccountRestoration #CyberCellAssistance #DefreezeProcess #P2PTrade #P2PFreeze #CryptoTradeFreeze #CryptoExchangeP2P #CyberLegalServices #CLS #CLSTeam #CryptoRecovery #cybersecurity #informationsecurity #itsecurity #digitalforensics #incidentresponse #cyberconsultancy #cyberawareness #dataprotection #onlineprivacy #cybersecurityexpert #forensicsanalyst #incidentresponder #securityconsultant #cyberthreatintelligence #penetrationtesting #ethicalhacking #cybercrime #datarecovery #cybersecuritycareer #cybernews #infosecnews #cybersecuritylife #cybersecurityawarenes #cybersecurity #informationsecurity #itsecurity #digitalforensics #incidentresponse #cyberconsultancy #cyberawareness #dataprotection #onlineprivacy #cybersecurityexpert #forensicsanalyst #incidentresponder #securityconsultant #cyberthreatintelligence #penetrationtesting #ethicalhacking #cybercrime #datarecovery #cybersecuritycareer #cybernews #infosecnews #cybersecuritylife #cybersecurityawareness #consultant #advisory #consultancy #ai_lawyer

Worldcoin Investigation in Singapore Highlights Growing Concerns Over Crypto Scams Singapore’s law enforcement has launched an investigation into activities surrounding the buying and selling of Worldcoin accounts and tokens. This comes after potential violations of the 2019 Payment Services Act, which governs digital payment tokens. While Worldcoin itself does not qualify as a payment service under the law, individuals involved in these transactions could be operating unauthorized payment services. Several arrests have been made, and over 200 mobile phones were seized in the process. The case highlights the growing concerns around privacy, security, and misuse in the expanding crypto and digital identity space, as well as Singapore's commitment to regulating digital assets responsibly. Read More 👉 https://lnkd.in/gXdbD-rF #13Desk #CryptoNews

#UKgovernment strengthens #measures against #cryptocurrency-enabled #crime. New #laws grant enhanced #powers to #lawenforcementagencies, allowing for the #seizure, #freezing, and #destruction of #digitalassets associated with #criminalactivities. #Cryptonews #CrimePrevention #Regulation #blockchainnew #UnitedKingdon https://lnkd.in/dR-4Zzwp

Interesting crypto court case: A recent case from the UK (D’Aloia v. Persons Unknown) offers a cautionary tale for crypto exchanges and investors alike. In this landmark trial, Fabrizio D’Aloia sought to recover $2.5M in USDT that had been misappropriated through a sham trading account. Despite an unsuccessful outcome, the judgment provides some interesting key insights: * Crypto is property: The court reaffirmed that crypto assets, including USDT, are considered property under English law - opening doors for legal protection. * Duties of exchanges: Exchanges need to be vigilant. Failing to monitor suspicious activity and uphold AML/KYC duties could expose them to liability as constructive trustees. * Quality of tracing evidence: This case highlights the importance of robust expert evidence in tracing misappropriated assets. Poor methodology can break a case. Full details here: https://lnkd.in/d9kN2_Dv #crypto #wolftheiss

One aspect of #crypto money laundering continues to fly under the radar, is a major #compliance challenge for the #blockchain industry & is being ignored by the majority of firms with inadequate #KYC / #AML. Rather than moving funds onchain, which is traceable, funds are “transferred” by handing over account keys or exchange account access. Previously in China / Macau to move funds, without actually moving funds - passwords for Alipay & other accounts could be handed over. With better identity monitoring, it became more difficult. The former #Macau shadow banking has migrated to Tether.io on TRON DAO. Not a new idea. Religious groups keep asset transfers off the books and tax-free using similar methods. Assets are put into an LLC and the religious leader at the house of worship keeps a set of books as to who owns it. It can be done with gold, emeralds, or other high-value assets. The government sees nothing in this underground shadow financial network. We have seen groups taking pictures of IDs & getting accounts verified. We can only guess that a 65-y/o female Indian villager is not likely a crypto enthusiast, but rather a front account to later be sold? Ledger physically handed off, Binance accounts transferred, #Bitcoin keys handed over - no outward evidence of a transaction. Anonymity & Privacy: Reduced Traceability: Removes on-chain transaction history & harder to track the movement of funds and identify the individuals. Pseudonymity: Blockchain is pseudonymous, trading keys bring an additional layer of anonymity, as individuals may not be directly linked. Complexity and Obfuscation: Layering: Breaking up funds, makes it difficult to follow the flow of funds & identify origin. Smurfing: Small transactions are aggregated to obscure the total amounts. Regulatory Challenges: Limited Oversight: TradFi has robust regulations. Crypto may be less regulated & harder to monitor & enforce. Jurisdiction Issues: Compliance can be complex when traded across borders. Other Risks: Darknet Markets: Darknet markets facilitate the trade of stolen credentials and account access. Social Engineering Attacks: Exploit individuals and gain access to their accounts. Insider Threats: Employees or service providers, who may misuse their access to accounts or customer data. Theft and Fraud: Individuals may be targeted for their private keys. Security Vulnerabilities: If keys are not securely stored or traded, there is a risk of unauthorized access. Mitigation: Enhanced DD: Platforms should conduct regular KYC/AML checks on users. Record-Keeping: Platforms should maintain account records, including user identities and transaction details. Law Enforcement: Platforms should cooperate with law enforcement agencies to share information and assist in investigations. User Education: Users should be educated about the importance of security best practices. It's crucial companies be aware of the AML risks and implement measures to mitigate it. Many are not.

🕵️♂️𝗖𝗿𝘆𝗽𝘁𝗼 𝗠𝗮𝗿𝗸𝗲𝘁 𝗠𝗮𝗻𝗶𝗽𝘂𝗹𝗮𝘁𝗶𝗼𝗻: 𝗔 𝗟𝗮𝗻𝗱𝗺𝗮𝗿𝗸 𝗙𝗕𝗜 𝗙𝗶𝗿𝘀𝘁 𝗖𝗿𝘆𝗽𝘁𝗼 𝗨𝗻𝗱𝗲𝗿𝗰𝗼𝘃𝗲𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗴𝗮𝘁𝗶𝗼𝗻 (𝗣𝗔𝗥𝗧 𝟭/𝟮): 𝗔 𝗪𝗮𝘁𝗲𝗿𝘀𝗵𝗲𝗱 𝗠𝗼𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗖𝗿𝘆𝗽𝘁𝗼 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 On October 9, 2024, the U.S. Attorney’s Office in Massachusetts and the SEC revealed details of “OPERATION TOKEN MIRRORS” – the first-ever #FBI #undercover investigation into #crypto market manipulation. This sophisticated international operation resulted in FIRST-EVER charges against 18 individuals and entities, including the arrest of key players from crypto firms and market makers. This investigation underscores how crypto, while being a revolutionary financial tool, is vulnerable to classic fraud schemes such as #PumpAndDump and #wash #trading. KEY TAKEAWAYS 🔹The #FBI and #SEC created #NexFundAI, a fake #token designed to lure fraudsters into engaging in illegal activities like wash trading. 🔹The investigation exposed how MARKET MAKERS allegedly manipulated over 60 tokens, deceiving investors with artificially inflated prices or are charged for perpetrating a similar scheme. 🔹The scheme affected hundreds of #retail #investors, some UNKNOWINGLY participating in #fraud, highlighting the growing sophistication of crypto market manipulation. ⚠️ Federal Authorities have made it clear: #cryptocurrency is NO EXCEPTION TO TRADITIONAL MARKET FRAUD LAWS. For those engaging in illicit activities or lax in their #due #diligence, this operation serves as a stark warning. KEY OUTCOMES 🔹Criminal Charges, Arrests, Civil Complaints: Defendants from key players in the crypto ecosystem now face various charges including for #fraud and #market #manipulation. The SEC also filed #civil complaints. 👮♀️ 🔹$25 Million Seized: Federal authorities seized substantial crypto assets from the operation, providing a deterrent to further illicit activities. 💰 🔹Deactivation of Trading Bots: “Multiple trading bots responsible for millions of dollars’ worth of wash trades for approximately 60 different cryptocurrencies have been deactivated.” 🔹Guilty Pleas: Several market makers and crypto company executives have already pleaded guilty, underscoring the gravity of the charges. Three other defendants in Texas, UK and Portugal have been apprehended this week.👩⚖️ 👉 See PART 2 about how investors and compliance professionals can protect themselves in the evolving #digital #asset landscape. #CryptoFraud #MarketManipulation #DigitalAssets #InvestorAwareness #Compliance #RiskManagement #FBIInvestigation #SEC #BlockchainSecurity #PumpAndDump #WashTrading #AI #Algorithm #Bot ___________________________________ ⚜ Andrée Gal, Attorney at law and Board Advisory ✍ My topics on LinkedIn: #Leadership #CorporateGovernance #FinancialLaw #CorporateLaw #DigitalEconomy #DigitalTransformation #AI and #WhiteCollarCrime ⭐ Like this post ? Want to see more ? 🔔 Ring it on my profile ⏫ 🔝 Follow me 🔝 Connect with me