TRM Weekly Roundup | September 19, 2024
Happy Thursday, and welcome back to ✨The Weekly Roundup✨: your source for all the latest news on crypto regulation, compliance, and investigations.
This week, Ari Redbord , Angela Ang , and Isabella Chase dig into the details behind these top stories:
👮 Ringleader in crypto home invasion spree gets 47-year sentence, the longest for a case involving crypto
On September 13, 2024, the U.S. Department of Justice announced that a Florida man, Remy Ra St Felix, was sentenced to 47 years in prison for his involvement in a series of home invasion robberies targeting cryptocurrency holders. The sentence, the longest for any case involving the use of cryptocurrencies, was the result of a years-long investigation by federal and state law enforcement investigators. TRM Labs bs is proud to have supported law enforcement in this investigation.
Over the course of the investigation, law enforcement learned that more than a dozen suspects threatened, assaulted, tortured, or kidnapped 11 victims across four states to coerce them to hand over access to cryptocurrency. As journalist Andy Greenberg wrote in an in-depth piece for Wired Magazine, the case is "likely the worst crypto-focused physical extortion crime spree ever in the US."
During the investigation of a Durham, North Carolina robbery, law enforcement used blockchain intelligence to trace the stolen funds to a US-based exchange, where they were able to get information about the gunmen which ultimately led to their arrest and conviction.
📑 For more about the investigation and conviction, read TRM’s blog post here.
🏦 OFAC sanctions criminal network involved in human trafficking, pig butchering, and scam centers
Last week, the U.S. Department of the Treasury ’s Office of Foreign Assets Control (OFAC) sanctioned Cambodian businessman Ly Yong Phat (Ly); his conglomerate L.Y.P. Group Co., LTD (L.Y.P. Group); and O‑Smach Resort for their role in serious human rights abuse related to the treatment of trafficked workers subjected to forced labor in online scam centers. OFAC also designated Cambodia-based Garden City Hotel, Koh Kong Resort, and Phnom Penh Hotel for being owned or controlled by Ly.
With these sanctions, OFAC targeted individuals and entities that force victims of human trafficking into acting as scammers in so-called “pig butchering” and other frauds. Often, the frontline scammers in cryptocurrency-related frauds are themselves victims of human trafficking, including forced labor, and are subjected to physical and mental abuse.
According to TRM, scams and frauds totaled about USD 12.5 billion last year, accounting for approximately a third of all crypto-related crime last year. Pig butchering alone accounted for about USD 4.4 billion in 2023.
For much more on these recent sanctions, read our blog post here.
🇬🇧 UK introduces bill to define digital assets as personal property
Last week, the UK introduced a bill to help define the legal status of digital assets.
The Property (Digital Assets etc.) Bill, introduced in the UK Parliament , seeks to clarify the legal status of digital assets such as cryptocurrencies, non-fungible tokens (NFTs), and tokenized real-world assets (RWAs).
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The bill proposes recognizing these assets as personal property under British law, which would provide legal protection to owners, including companies and individuals, against fraud and scams. The legislation is aimed at resolving disputes related to ownership of digital assets, particularly in complex cases such as divorce settlements.
Central to the bill is the introduction of a new category of property, in addition to existing categories of "things in possession" (physical goods) and "things in action" (such as debts and shares). This new category would allow digital assets to be considered capable of attracting personal property rights, as recommended by the Law Commission’s 2023 report.
The report, commissioned by the Ministry of Justice UK , concluded that certain digital assets, mainly crypto tokens, do not fit neatly into existing property categories, but should still be recognized as property under the law of England and Wales. This legislation aims to clarify these ambiguities, following the Law Commission’s recommendations on how crypto and digital tokens should be handled legally.
🇺🇸 Trump family to launch crypto project World Liberty Financial
World Liberty Financial (WLFI) is a new cryptocurrency project launched by former President Donald Trump and his family. Announced in a two-hour event on X Monday evening, the project aims to be a crypto banking platform where the public can borrow, lend, and invest in cryptocurrencies. The WLFI token will be offered under the SEC's Regulation D, allowing the project to raise capital without registering the securities with the SEC, provided specific conditions are met. The token distribution is structured with 20% allocated to the founding team, which includes Trump family members, 17% set aside for user rewards, and 63% available for public purchase. Notably, there will be no pre-sales or early buy-ins. While the Trump family will be compensated, the platform is not directly owned or managed by them.
The launch marks Trump's deepening involvement in the crypto space, a shift from his initial skepticism to a more engaged stance, partly influenced by the success of his own NFT collections. During the launch, Trump discussed the necessity of engaging with crypto, despite his initial disinterest.
🇹🇭 Thai regulators consult on measures to support investment token ecosystem
Last week, the Securities and Exchange Commission, Thailand published a consultation paper on promoting the use of investment tokens for fundraising and investment. “Currently, the SEC has a policy to promote the use of Investment tokens as a fundraising tool,” the paper said. However, liquidity of investment tokens in the secondary market remained limited. The proposed measures aim to “increase access channels to investors in both primary and secondary markets.”
Key measures include relaxing licensing requirements for mutual funds and private funds to invest in investment tokens and other digital assets; and reviewing the licensing criteria and process for investment token broker, dealer, and advisor licenses.
This is the latest in a series of innovation-forward moves from the Thai SEC. Last month, it launched a digital asset regulatory sandbox, and in June, it approved the country’s first spot Bitcoin ETF for distribution to wealthy and institutional investors.
🇪🇺 Who to watch in the new EU Commission for AML and Digital Assets
On Tuesday, the President of the European Commission, Ursula von der Leyen, announced her ideal list of next European Commissioners. These individuals act as the executives of the EU, develop its overall strategy, propose new laws, and ensure that existing laws are properly implemented. Early reports highlight the new commission’s focus on security, competitiveness, and protecting European democracy.
For compliance and digital asset watchers, two important appointees stand out. Maria Luis Albuquerque will serve as the Commissioner for Financial Services and the Savings and Investments Union. Her broad portfolio includes digital finance, payments, anti-money laundering (where she will oversee the introduction of the new AML Authority), and external security, where she will ensure the effectiveness of EU sanctions. Valdis Dombrovskis will take on the role of Commissioner for Economic Affairs and Productivity, which will include overseeing the next steps on the digital Euro.
The EU Parliament will now review the provisional list of Commissioners and will likely finalize it by the end of the year.
Outcome-Driven Product Leader | Customer-Focused | AI & Emerging Technology Advocate | Storyteller | CSPO
3moGreat read
Global Head of Policy and Government Affairs at TRM Labs
3mo🔥 Loved putting this one together during a busy news week in the #cryptoverse!