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Do Kwon Challenges SEC’s Jurisdiction in Multibillion-Dollar Crypto Securities Fraud Case

Do Kwon Challenges SEC’s Jurisdiction in Multibillion-Dollar Crypto Securities Fraud CaseAttorneys defending the co-founder of Terraform Labs, Do Hyeong Kwon, also known as Do Kwon, have presented their argument that says the U.S. Securities and Exchange Commission (SEC) has no jurisdiction in the matter. The legal team asserts that U.S. law precludes regulators “from using federal securities law to assert jurisdiction over the digital assets […]

Historical cycle data suggests Bitcoin has left the ‘danger zone’ — Analyst

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.

Historical cycle data suggests Bitcoin has left the ‘danger zone’ — Analyst

House Republicans Demand Answers From SEC Over FTX Co-Founder’s Arrest

House Republicans Demand Answers From SEC Over FTX Co-Founder’s ArrestOn Feb. 10, 2023, Republicans Patrick McHenry of North Carolina and Bill Huizenga of Michigan, both members of the U.S. House of Representatives, sent a letter to Securities and Exchange Commission (SEC) chairman Gary Gensler seeking answers about the arrest of FTX co-founder Sam Bankman-Fried prior to his scheduled testimony before the House Financial Services […]

Historical cycle data suggests Bitcoin has left the ‘danger zone’ — Analyst

NYDFS Releases Guidance on Importance of Segregation and Separate Accounting for Customer Funds in Crypto Industry

NYDFS Releases Guidance on Importance of Segregation and Separate Accounting for Customer Funds in Crypto IndustryOn Monday, the New York Department of Financial Services (NYDFS) published guidance on custodial structures to help protect customers’ money if a crypto firm goes bankrupt. New York’s top financial regulator stressed that businesses should not commingle customer funds and that customer funds should be segregated with separate accounting. FTX Collapse Prompts NYDFS to Issue […]

Historical cycle data suggests Bitcoin has left the ‘danger zone’ — Analyst