Since the end of 2019, when the blockchain core technology was raised to a national strategic level, the public has paid more and more attention to the blockchain field. The funds for promotion are endless.
According to media reports, there are currently funds on the market that lure users to store ETH under the guise of DeFi. The routines of this type of fund fraud are often the same. They induce investors to invest in virtual currency by means of online and offline expansion, promises of high returns, decentralized management structure, vague information about the actual controller, and a wide range of involvement. The transfer of virtual assets obtained through currency and other means has increased the difficulty of tracing and anti-money laundering for relevant law enforcement agencies.
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Countries comprehensively build up the anti-money laundering defense line of encrypted assets
1) The Cayman Islands establishes a regulatory framework for “Virtual Asset Service Providers” (VASPs), with the first phase deciding how to supervise and enforce anti-money laundering (AML) and countering terrorist financing (CFT) measures; the second phase is scheduled for 2021 Effective June, will study licensing requirements and regulation of value-added services;
2) South Korean regulators require banks to use their own anti-money laundering (AML) risk assessment procedures to decide whether to do business with cryptocurrency exchanges. According to previous news, South Korea will issue a legislative notice for the implementation of the legislative amendments to the Specific Financial Information Act from November 3, and virtual asset service providers will prohibit the transaction of anonymous coins and the processing of virtual assets with money laundering risks;
3) The Dutch central bank said that 39 encryption service providers have submitted applications for registration. Due to the implementation of the European Union’s Fifth Anti-Money Laundering Directive (5AMLD), providers of exchange services between cryptocurrencies and fiat currencies and providers of custodial wallets must apply for registration with the Dutch central bank to demonstrate compliance with the Money Laundering and Terrorist Financing ( Prevention) Act and the Sanctions Act 1977. 5AMLD came into effect in the Netherlands on May 21;
4) The Dutch central bank announced new anti-money laundering (AML) regulations this month that require all local cryptocurrency exchange users to prove ownership of withdrawal addresses associated with their accounts;
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Financial fraud chasing "variant" scams need to be cautious
According to the statistics of CoinHolmes, in November alone, there were nearly 20 domestic and foreign fraudulent incidents of using the "blockchain" concept to carry money away, with a total loss of nearly 3 billion yuan, and some of the accounts have been recovered.
On November 2, the Shanghai Hongkou District People's Procuratorate prosecuted eight "middlemen" who used virtual currency to assist fraudsters in transferring more than 15 million yuan;
On November 3, the Suqian police cracked a digital currency fraud case involving several merchants in China, involving a total of 2.2 million yuan. At present, the platform has been blocked by the police and part of the stolen money has been successfully recovered, and the relevant persons involved in the case have been arrested one after another;
On November 6, Slack, an A-share listed company involved in the blockchain, suffered a telecom fraud and lost $2.05 million (equivalent to approximately RMB 13.55 million). A-share listed company Slack (300382.SZ) announced on the evening of November 5 that the company's wholly-owned subsidiary Slack International Co., Ltd. has recently encountered a criminal gang's telecommunications fraud, resulting in more than 2.05 million US dollars in the Slack International bank account being defrauded. . Currently, the case is under investigation;
On November 10, Nanjing Liuhe police cracked a fraud case related to Bitcoin, arrested 10 people involved in the case, and recovered more than 100,000 yuan of fraudulent funds. The suspect committed fraud on the grounds of deceiving investors to recharge and invest in Bitcoin and maintain accounts, and the funds involved in the case exceeded 420,000 yuan;
On November 12, a fraudulent scam emerged on the "Roman Coin Exchange" platform in Changzhou, and the police reminded to beware of "variant" scams;
On November 14, the police in Xinzhou, Shanxi cracked the "SZSE Digital Currency Exchange" fraud case, involving more than 10 million yuan;
On November 16, citizens of Quanzhou reported a transaction fraud on the MARK exchange, involving as much as 2.5 billion yuan. The MARK exchange was closed in mid-October;
On November 19, Leon Fu, co-founder of the TaiFu Cryptocurrency Index, lost thousands of ADA (a total of several hundred dollars) in a scam involving three fake websites;
On November 20, the Jiangsu police cracked the Cambodia Crystal International blockchain scam, involving more than 10 million yuan;
On Nov. 20, the SEC sought penalties against three companies and four scammers involved in the Meta 1 coin cryptocurrency scam. They are accused of defrauding at least 500 investors around the world of $9 million in the name of non-existent artwork or gold-backed fraudulent Meta 1 Coin;
On November 20, the "7.12" large-scale transnational telecommunications network fraud case was heard in public. The criminal group was accused of using relevant platforms to defraud more than 130 victims across the country and more than 3,000 property in the name of investing in multiple virtual currencies in accordance with pre-designed means of finding targets, building trust, inducing investment, and defrauding money. ten thousand yuan;
On November 23, the Public Security Bureau of Hegang City, Heilongjiang successfully cracked a large-scale online pyramid scheme of "Columbus CAT virtual currency", involving nearly 300 million yuan. Nearly 30 people were involved in the case, and the case is currently under further investigation;
On November 28, XRP Forensics, an analysis team that processes XRP data, reported that since November 26, XRP-related email scams targeting hardware wallet owners have occurred frequently, with more than 20 victims;
In the blockchain financial system, the user's assets are stored in the personal digital currency address, rather than in the traditional financial ecology, the receipt and payment are anonymous addresses, and the peer-to-peer payment is based on the blockchain system, which increases supervision. Difficulty in sector tracking.
Through CoinHolmes' visual transaction graph, CoinHolmes found that the asset transfer on the chain of such cases includes multiple digital addresses and multiple transactions, which go through multi-layer decentralized transfers, currency mixing service systems, and flow into various KYC-free service agencies and darknet , and finally weave into a dense, complex web.
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Security is a prerequisite for getting rid of digital "streaking"
As early as 2013, when Bitcoin was on the rise, the extortion model related to encrypted assets had already appeared. Criminals extorted high ransom by encrypting files in users' computers. Since most of these cases are Bitcoin extortion, relevant law enforcement agencies have encountered considerable difficulties in the tracking process.
By 2015, ransomware began to enter the outbreak period, and many hacker organizations made hundreds of millions of dollars in profits. However, the ransomware at that time mainly relied on emails and hanging horses to spread, and could not form a global infection.
With the opening up of the virtual world and the physical world, cyber attacks can cause large-scale, global destructive consequences, and its power will surpass traditional single-point security threats. The original petty thieves and black industry are no longer the main threats, and advanced persistent threats launched by state-level opponents, cybercrime organizations, and cyberterrorism may become the biggest security threats.
According to CoinHolmes statistics, there were five extortion-related security incidents in November, with a loss of more than $30 million:
On November 1, hackers invaded the Finnish Vastaamo Psychotherapy Center to steal the psychotherapy records of Finnish citizens in order to extort Bitcoin. It is reported that in the past two weeks, 1% of Finnish residents have received a message asking to pay a ransom of 500 euros in cryptocurrency, otherwise hackers will publish their psychotherapy records;
On November 3, the police in Qidong, Jiangsu Province cracked a Bitcoin extortion virus case. After investigation, the suspect in this case committed more than 400 crimes from November 2017 to May 2020, successfully extorted more than 120 transactions, and illegally obtained more than 100 bitcoins, equivalent to more than 5 million yuan;
On November 7, the game giant CAPCOM was attacked by ransomware, and hackers demanded $11 million in bitcoin ransom;
On November 12, hackers attacked Italian wine merchant Campari, stole important documents, contracts and bank information, and demanded $15 million in Bitcoin ransom;
On November 13, Bitcoin ransomware Pay2Key attacked several Israeli companies.
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More than $2.4 billion in suspicious assets flowed into major exchanges
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In November, according to data from CoinHolmes, a total of 129,400 BTC, or about $2.4 billion, of “suspicious assets” flowed into major exchanges, of which the top ten were Binance, Coinbase, Huobi, ZB, KuCoin, Bittrex, and Luno , BitMEX, HitBTC, Gemini.
In November, PeckShield has counted the outflow of "suspicious assets" from the major exchanges in the address tag of 66,500 BTC, or about 1.24 billion U.S. dollars, of which the top ten are Binance, ZB, Huobi, Bitfinex, Gemini, Bithumb, BitMEX, Bitget, Kranken, OKEx.
