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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 […]

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Elon Musk Can’t Wait to Reform US Government Spending and Regulations

Elon Musk Can’t Wait to Reform US Government Spending and RegulationsTesla CEO Elon Musk has expressed his eagerness to tackle excessive waste and regulations in the U.S. government, responding to a report that former President Trump is considering him for a role in auditing federal agencies. Musk emphasized the need to reduce wasteful spending to curb inflation and proposed forming a “government efficiency commission” to […]

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Aussies revealed as prime targets of Israel crypto scam syndicate

Evidence found that Australians were one of the top countries targeted in a sophisticated cryptocurrency investment scam network, which has suspected kingpins in Israel.

Australian residents have been identified as one the primary targets of a sophisticated network of cryptocurrency call-center scammers — which are suspected to be run by Israel-based crime bosses. 

Evidence uncovered after a full-scale raid of four Serbian call centers and 11 residences by Serbian, German, Bulgarian and Cypriot authorities found that Australians were among the top countries being targeted. The news came from a Feb. 23 report by The Australian.

The raids saw fifteen people arrested and $1.46 million in cryptocurrencies seized, among others.

Scammers from these call centers allegedly used advertisements on social media to lure in victims and offer promising investment opportunities with lucrative returns, according to the report.

Private investigation firms told the outlet that Australians were particularly sought after by scammers because of their relative wealth and a purported history of weak investigative efforts by federal and state authorities:

“Australia’s wealth combined with a long history of state and federal authorities being unwilling or unable to investigate online investment fraud has made the country a sitting duck for the international crime syndicates behind the scams.”

Mark Solomons, Senior Investigator at IFW Global, a private intelligence firm, explained that because many Australians are “friendly” and “open-minded,” they’re more likely to pursue online relationships — particularly “if the right buttons are pressed.”

“Australia and Canada vie for the top spot. They are rich countries with a low likelihood of a disciplined investigation or detection."

Solomons said much of the stolen cryptocurrencies are being used to fund the scammer’s lavish lifestyles:

“There are Israelis getting very, very rich by ripping off Australians and sucking superannuation and retirement savings out of the Australian economy.”

“We’re talking about various individuals who fly around in private jets, who have very significant assets, real estate, fancy cars, cash. They are traveling freely around the world, they’re buying yachts,” Solomons added.

While Europol has reported $3.1 million to have been stolen by the multinational operation, they believe the true figure “may be in the hundreds of millions of euros.”

Related: Australia bolsters crypto watchdogs in ‘multi-stage’ plan to fight scams

In comparison to other “well-resourced” nations, Solomons urged the Australian government to up its enforcement efforts at the state, federal and international level to make the targeting of Australian investors less appealing to these scammers.

While some reports say Australians lost up to $2 billion from investment scams in 2021, the Australian Competition and Consumer Commission (ACCC) reported Australians to have lost $323.7 million, which increased a whopping 75.6% to $568.6 million in 2022, according to the consumer watchdog’s Scamwatch database.

$221 million of those scam losses came through the use of crypto payments, according to the ACCC.

Amount (AUD) lost and number of reports due to scams: Source: Scamwatch.

Victims have lost an additional $53.4 million in the first month of 2023 too.

To fight the issue, the Australian Securities Investment Commission (ASIC) released a list of the “top-10 ways to spot a crypto scam” in November to raise awareness of the issue.

In July, the ACCC began trialing a cybersecurity service that automatically takes down scam websites. The trial saw some early success, with several crypto scam sites being knocked offline relatively quickly.

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Report: Federal Prosecutors in New York Probe Digital Currency Group and Subsidiary Genesis

Report: Federal Prosecutors in New York Probe Digital Currency Group and Subsidiary GenesisFollowing accusations from Gemini co-founder Cameron Winklevoss in an open letter to Digital Currency Group CEO Barry Silbert, a report citing “people familiar with the matter” states that federal prosecutors from New York are scrutinizing transfers between Digital Currency Group and its subsidiary, Genesis Global Capital. Report Claims Digital Currency Group, Genesis Global Capital Allegedly […]

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Puerto Rico sees resurgence of interest among crypto rich

Crypto capital is moving to Puerto Rico as tax regulations are much more favorable than in the U.S. proper.

The United States territory of Puerto Rico is seeing a resurgence of interest among crypto investors attracted by the fact it doesn’t charge federal income tax and eligible investors can pay zero taxes on their crypto gains.

Under local law Act 22, those who live in Puerto Rico for at least half of the year are exempt from taxes on interest, dividends and capital gains — meaning they can keep most or all of the profits from crypto or other investments without having to renounce U.S. residency.

The popularity of the territory as crypto tax haven was highlighted when news stories emerged that Frances Haugen, the Facebooks whistleblower, had moved to Puerto Rico in March. But it's been a haven for crypto people for years, including Bitcoin billionaire Puerto Rico who owns a nine bedroom mansion there.

Logan Paul, the social media personality and Cryptozoo founder, moved to the island earlier this year where he rents out a $55,000 a month mansion. Paul told Time Magazine the island's tax free status was a big part of the appeal:

“In Puerto Rico you’re motivated to do more and make more money because of the implications that come with it.”

Crypto related businesses that have relocated to Puerto Rico in recent years include the hedge fund Pantera Capital from New York and NFT marketplace SuperRare from Silicon Valley. More traditional finance types like legendary hedge fund manager John Paulson have also become residents.

The Puerto Rico Blockchain Trade Association (PRBTA) recently announced the first edition of the Puerto Rico Blockchain Week for December of 2021, which aims to lure more crypto millionaires and investment into the island.

“We seek to connect entrepreneurs with communities in Puerto Rico and educate them on the multiple benefits available in the crypto era,” stated Keiko Yoshino, Executive Director of PRBTA.

The capital migration that crypto is bringing to Puerto Rico is boosting economic growth but comes with drawbacks for locals. Projects like Puertopia, which is a crypto utopian community in San Juan, are blamed for causing housing prices to soar.

Puerto Rico is not the only location competing for crypto dollars.

Related: Friendliest of them all? These could be the best places for crypto

Aiming to attract crypto investors and businesses El Salvador also offers major tax breaks on Bitcoin trading with investors exempt from paying capital gains and income tax on Bitcoin.

Other classic tax havens have a cryptocurrency friendly environment including Switzerland, the Cayman Islands and Malta. St Kitts and Nevis, which is home to “Bitcoin Jesus” Roger Ver, allows savvy crypto investors to avoid taxes and offers a citizenship by investment program and asset protection advantages for crypto millionaires and businesses.

In Portugal crypto traders and miners are exempt from income tax and in Apri the country approved the Digital Transitional Action Plan which will promote the creation of economical areas dedicated to encourage blockchain-based business.

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