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DOJ recommends harsher sentences AI-enhanced crimes

Using AI to plan, commit, or help cover up a plan could lead to harsher sentencing in the US soon.

The United States Department Justice (DOJ) has asked the United States Sentencing Commission to update its guidelines to provide additional penalties for crimes committed with the aid of artificial intelligence. 

According to a legal alert published by the law offices of White & Case, the recommendations seek to expand well beyond established guidelines and would apply not only to crimes committed with AI, but to any crime aided or abetted by even simple algorithms.

Current guidelines, per the legal alert, only cover so-called “sophisticated” systems. Ostensibly, the new guidelines would make AI involved in criminal activity an accessory, with the legal system punishing the person responsible for its application to criminal activity.

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US Authorities Split $2 Billion in Bitcoin Into 2 Wallets, Igniting Custody and Sale Speculation

US Authorities Split  Billion in Bitcoin Into 2 Wallets, Igniting Custody and Sale SpeculationFollowing the U.S. government’s transfer of $2 billion in bitcoin, Arkham Intelligence reported that the federal agency divided the funds into two separate Bech32 bitcoin addresses: one containing 10,000 BTC and the other holding 19,799.99 BTC. Arkham speculates that the 10,000 BTC may have been sent to an institutional custody service. Arkham Reports U.S. Bitcoin […]

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Trump won’t sell US BTC if elected, what about seized assets?

Questions abound concerning the Bitfinex and Silk Road funds if Trump is re-elected.

Donald Trump intends to make the United States the crypto capital of the planet. The former president promised this and more during a rousing speech given at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27. But some of the Republican candidate’s comments may have been cause for consternation among cryptocurrency advocates.

While Trump’s speech largely centered on Bitcoin and the community surrounding it being a positive force for America, he did lay out some specifics. Chief among his promises was that the US wouldn’t part with its current Bitcoin stockpile, if he's re-elected.

Per Trump:

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Founder of Peer-to-Peer Crypto Exchange Paxful Pleads Guilty Over Anti-Money Laundering Program Failures: DOJ

Founder of Peer-to-Peer Crypto Exchange Paxful Pleads Guilty Over Anti-Money Laundering Program Failures: DOJ

The co-founder and former director of peer-to-peer cryptocurrency marketplace Paxful has pleaded guilty to charges related to the platform’s failure to gather sufficient know-your-customer (KYC) information from its users. Paxful is a virtual currency platform and money transmitting business where users traded crypto assets in exchange for other items. In a statement, the U.S. Department […]

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BitMEX pleads guilty to Bank Secrecy Act violation

BitMEX co-founders Arthur Hayes, Benjamin Delo, and Samuel Reed pleaded guilty to similar criminal charges in 2022 and received probation.

Officials with the US Department of Justice announced that cryptocurrency exchange BitMEX pleaded guilty to violating the Bank Secrecy Act (BSA) by operating without “any meaningful” Anti-Money Laundering (AML) program.

In a July 10 notice, US Attorney Damian Williams said BitMEX “willfully fail[ed] to establish, implement, and maintain” an adequate AML program from 2015 to 2020. The charges seem to result from testimony during 2022 criminal proceedings against some of the exchange’s founders and employees.

“BitMEX opened itself up as a vehicle for large-scale money laundering and sanctions evasion schemes, posing a serious threat to the integrity of the financial system,” said Williams. “Today’s guilty plea indicates again the need for cryptocurrency companies to comply with US law if they take advantage of the US market.”

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U.S. Marshals Service Announces Partnership With Coinbase To Manage and Dispose Cryptocurrencies

U.S. Marshals Service Announces Partnership With Coinbase To Manage and Dispose Cryptocurrencies

The US government has announced it is using American crypto exchange Coinbase to custody its digital assets. The U.S. Marshals Service (USMS), a sub-tier of the Department of Justice (DOJ), has revealed that it is custodying digital assets with Coinbase as part of its program to manage and dispose of large amounts of “Class 1” […]

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DOJ Sentences Two US Citizens for Multi-Million-Dollar Crypto Securities Fraud Scheme

DOJ Sentences Two US Citizens for Multi-Million-Dollar Crypto Securities Fraud Scheme

Two executives of financial technology company Hydrogen Technology received a prison term for their role in inflating the firm’s cryptocurrency, HYDRO. In a statement, the U.S. Department of Justice (DOJ) says that Hydrogen Technology co-founder and CEO Michael Kane of Miami Beach, Florida and Head of Financial Engineering Shane Hampton of Philadelphia, Pennsylvania were sentenced […]

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DOJ Arrests CFO of Media Outlet Epoch Times for Alleged $67,000,000 Money Laundering Scheme Involving Crypto

DOJ Arrests CFO of Media Outlet Epoch Times for Alleged ,000,000 Money Laundering Scheme Involving Crypto

The U.S. Attorney’s Office, Southern District of New York (USAO-SDNY), is charging the chief financial officer of The Epoch Times, Bill Guan, with one count of conspiring to commit money laundering and two counts of bank fraud. According to the USAO-SDNY, Guan entered into a transnational conspiracy with others that included the media outlet’s foreign-based […]

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Ex-Investment Banker and Registered Broker Busted in $1,500,000 Crypto Fraud Scheme: DOJ

Ex-Investment Banker and Registered Broker Busted in ,500,000 Crypto Fraud Scheme: DOJ

A former investment banker and registered broker has been sentenced for masterminding a $1.5 million crypto fraud scheme. In a new press release, the US Department of Justice (DOJ) says that Rashawn Russell, who used to work for the Financial Industry Regulatory Authority (FINRA), has been sentenced to three years and five months behind bars. […]

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