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US sanctions Russian crypto platforms for money laundering ties

Two crypto exchanges and two individuals have been sanctioned for ties to underground finance.

The United States government has taken action against two Russians and two cryptocurrency exchanges tied to alleged illicit Russian finance. The departments of the Treasury, Justice and State were involved, along with an assortment of overseas law enforcement agencies.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) identified PM2BTC, a Russian cryptocurrency exchange, and Sergey Ivanov, who is associated with that exchange, as being of “primary money laundering concern.” At the same time, Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Ivanov and another crypto exchange, Cryptex.

PM2BTC is alleged to process the proceeds of ransomware attacks and other illicit activities. Half of its activities are linked to illegal operations, according to FinCen. According to Chainalysis, PM2BTC shares wallet infrastructure with UAPS (Universal Anonymous Payment System), an underground payment processing system.

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Bybit fully restores withdrawal system following biggest crypto hack of all time

Russia’s Cybercrime Damage Exceeds $1.25 Billion in 2024, Minister Says

Russia’s Cybercrime Damage Exceeds .25 Billion in 2024, Minister SaysRussian Interior Minister Vladimir Kolokoltsev has revealed that cybercrime damage in Russia has surpassed $1.25 billion so far this year, with both individuals and organizations, including government bodies, as frequent targets. He highlighted that cybercrime now represents 40% of all crimes in the country, rising to 60% in serious cases. Cybercrime Costs Russia Over $1.25 […]

Bybit fully restores withdrawal system following biggest crypto hack of all time

Been scammed? ‘Crypto crimestoppers’ claim to help get crypto back

Private investigation firm Lionsgate claims it can help recover stolen crypto when going straight to the police fails.

If you’ve been scammed, it might seem like your crypto is lost forever. Decentralized blockchain wallets can’t be frozen in the way bank accounts can. And even if the scammer tries to cash out at a regulated exchange, the authorities may move too slowly to nab the funds before they are withdrawn.

But various private investigation firms do claim to have notched up success in recovering funds. Self-proclaimed “crypto crimestoppers” Lionsgate Network, claims it has recovered at least $4 million in stolen and lost crypto funds. 

Lionsgate said it uses connections with law enforcement in various US states and countries around the world to freeze and return stolen crypto to its owners.

Founder and CEO Bezalel Eithan Raviv told Cointelegraph that while it’s difficult to track and freeze funds, it’s not impossible. “Everything begins with analysis, as that’s what we do,” he stated. “That’s our core service, and we do it with the most advantageous tech there is in [the] crypto space or blockchain analysis.”

Locating the funds is one thing, but recovering them is another. 

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Bybit fully restores withdrawal system following biggest crypto hack of all time

BingX confirms the resumption of withdrawal services following hack

Monetary losses from the BingX hack were initially reported as totaling $26 million, but the figure has since swelled to $52 million.

BingX — a popular cryptocurrency exchange — has announced that withdrawal services on the platform will resume on Sept. 21, 2024, for certain digital assets.

According to the exchange's announcement, withdrawals for Tether's US dollar stablecoin (USDT), Circle's US dollar stablecoin (USDC), Bitcoin (BTC), Ethereum (ETH), Tron (TRX), and Solana (SOL) will resume first followed by withdrawal services for other tokens and digital assets over the next two weeks.

The exchange notified customers that deposit services would likewise resume in the next several weeks and told clients that withdrawal requests submitted before the disruption of withdrawal services have been canceled and must be resubmitted.

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Bybit fully restores withdrawal system following biggest crypto hack of all time

US prosecutors oppose Mango Market exploiter’s motion for acquittal

Following the exploit, Eisenberg claimed he negotiated a settlement with Mango Markets' insurance fund to ensure users retained their money.

Prosecutors for the United States Southern District of New York (SDNY) filed a motion on Sept. 18 opposing Mango Markets exploiter Avraham Eisenberg's request for acquittal or a new trial.

According to the documents filed by SDNY attorneys, the jury correctly convicted Eisenberg by evaluating a "mountain of evidence" beginning with the prosecution's assertion that Mango perpetual swaps are subject to the Commodities Exchange Act.

The federal prosecutors stressed that Eisenberg's defense — arguing the fraud charges do not apply in the case because the defendant did not seek to manipulate the market price of the underlying asset — were materially incorrect and noted the jury instructions on price manipulation. Attorneys for the Southern District of New York asserted:

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Bybit fully restores withdrawal system following biggest crypto hack of all time

German Authorities Shut Down 47 Crypto Exchange Services in Cybercrime Crackdown

German Authorities Shut Down 47 Crypto Exchange Services in Cybercrime CrackdownGerman authorities have dismantled 47 exchange services involved in facilitating anonymous crypto transactions for criminal activities. These platforms bypassed anti-money laundering protocols, enabling cybercriminals to exchange digital currencies without identity verification. The takedown follows a series of other operations targeting major cybercrime networks. With seized user and transaction data, authorities are set to pursue further […]

Bybit fully restores withdrawal system following biggest crypto hack of all time

Indian crypto exchange WazirX struggles to recover funds 60 days after hack

WazirX’s $235 million hack recovery efforts face hurdles as internal findings yield little to no significant breakthroughs. 

Two months after hackers managed to steal over $230 million from India-based crypto exchange WazirX, the status of customer funds remains in doubt as the exchange and its custody provider, Liminal, continue to play the blame game.

Both firms continue to accuse the other of being at fault for the breach that allowed the hacker to steal customer funds, and there appears to be no resolution in sight, especially with internal investigations seemingly moving ahead at a snail’s pace.

Most recently, the firm faced legal threats from its customers, with the most notable pursuant being another rival exchange, CoinSwitch. The company initiated legal action against Wazir to recover 2% of its funds worth approximately $6.2 million. 

Source: CoinSwitch

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Bybit fully restores withdrawal system following biggest crypto hack of all time

US Lawmaker Urges Release of Jailed Binance Employee

US Lawmaker Urges Release of Jailed Binance EmployeeA U.S. lawmaker is calling for the release of a detained Binance executive in Nigeria. Representative James Hill believes the executive, Tigran Gambaryan, has significantly contributed to combating cybercrime in the U.S. and should not be abandoned. Hill expressed concern that the continued detention could strain diplomatic ties between the U.S. and Nigeria. Hill urged […]

Bybit fully restores withdrawal system following biggest crypto hack of all time

New Android malware steals private keys from screenshots and images

According to a recent FBI warning, North Korean hackers are "aggressively targeting" the crypto industry with “well-disguised” attacks.

A new Android malware called SpyAgent, discovered by software security firm McAfee, can steal private keys stored in screenshots and images on a smartphone’s internal storage.

More specifically, the malware uses a mechanism known as optical character recognition (OCR) to scan images stored on a smartphone and extract words from them. OCR is present in many technologies, including desktop computers, which can recognize, copy, and paste text from images.

McAfee Labs explained that the malware is distributed through malicious links sent through text messages. The cybersecurity company broke down the process, beginning with an unsuspecting user clicking on a link they received.

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Bybit fully restores withdrawal system following biggest crypto hack of all time

Missouri Man Arrested for Extorting Former Employer With Bitcoin Ransom

Missouri Man Arrested for Extorting Former Employer With Bitcoin RansomA Missouri man, Daniel Rhyne, was arrested for attempting to extort his former employer, a New Jersey-based industrial company. Rhyne, a former core infrastructure engineer for the company, allegedly sent an extortion email on Nov. 25, 2023, claiming to have locked out or deleted the company’s IT administrators from its computer network and deleted server […]

Bybit fully restores withdrawal system following biggest crypto hack of all time