Posts in category

Money Laundering


A former bitcoin trader and crypto exchange operator from the U.S. state of Arizona, has been sentenced to 41 months in jail, according to court documents. The sentencing was announced by the Department of Justice on Wednesday, after a federal jury convicted Thomas Mario Costanzo on five charges of money laundering on March 28. The sentence …

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Edan Yago has spent the last seven years engaged in payments using cryptocurrencies, first at Zynga, then as CEO of Epiphyte and now as the founder of a stealth startup developing a meta-stablecoin platform. Follow him on Twitter here. The worst-kept secret in cryptocurrency is that many projects are little better than scams: they’ve digested billions of …

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A group of Russian military intelligence officers indicted Friday as part of an ongoing investigation into Russian interference in the 2016 U.S. presidential election allegedly used bitcoin to fund their operations. In the just-released indictment, prosecutors assert that the 12 named intelligence officers hacked computer networks and email accounts owned and used by the U.S. Democratic Party, …

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A Los Angeles bitcoin trader was sentenced Monday to one year in federal prison after she admitted to operating an unlawful money transmission business. Theresa Tetley, a former stockbroker and real estate investor based in California, was also fined $20,000 and will give up 40 bitcoins (an amount worth roughly $254,000), nearly $300,000 in cash …

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Cryptocurrencies are “tailor-made” for foreign powers hoping to influence American elections, a security consultant told a group of U.S. senators on Tuesday. Scott Dueweke, director of threat analysis company DarkTower, was one of several witnesses appearing before the Senate Subcommittee on Crime and Terrorism to discuss the potential use of cryptocurrencies by foreign agents in order to …

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Japan’s financial watchdog has issued business improvement orders to six licensed cryptocurrency exchanges following on-site inspections conducted over recent months. According to an announcement made by the Financial Services Agency (FSA) on Friday, the regulator is ordering bitFlyer, QUOINE, BTC Box, Bit Bank, Tech Bureau and Bit Point to enhance their internal-auditing and user-protection systems. …

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The Financial Action Task Force (FATF), an intergovernmental organization that develops policies to tackle money laundering, is planning to develop binding rules for the world’s cryptocurrency exchanges, a report indicates. According to a Reuters report on Tuesday, an unnamed Japanese government official said that the group aims to hold talks around the subject starting on June 24. …

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Coinbase has lost another appeal in a lawsuit brought by former customers of the defunct cryptocurrency exchange Cryptsy, and the case will now proceed to a jury trial. An appeals court in Georgia on Monday affirmed a lower court’s denial of Coinbase’s appeal of the case, which blames the company for failing to stop Cryptsy’s …

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Taiwan aims to formally regulate bitcoin under anti-money laundering (AML) rules before the end of the year. According to the Taiwan Central News Agency, Chiu Tai-san, the country’s minister of justice, said at an anti-money laundering event on Friday that the nation aims to have the legal framework ready before a visit to Taiwan by the Asia …

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The government of Taiwan has moved a step closer to regulating bitcoin under anti-money laundering (AML) rules. In an announcement on Tuesday, the state’s Ministry of Finance said it will push for the regulation of cryptocurrencies under same AML rules already covering the traditional financial sector. Citing guidance issued by Financial Action Task Force, an intergovernmental …

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Europol has shut down a drug trafficking ring that used cryptocurrencies and credit cards to launder more than €8 million through a Finnish crypto exchange, it announced on Monday. The investigation was coordinated by Europol and executed by Spain’s Guardia Civil in conjunction with Finnish authorities and the investigative arm of the U.S. Department of …

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The Central Bank of Taiwan is eyeing new rules that would bring bitcoin under the island’s existing anti-money laundering regulations. During a meeting with Taiwan’s legislative arm Monday, central bank governor Yang Chin-long was questioned over how the banking authority would address the current “opacity” in bitcoin trading in the country, as highlighted by the …

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An Arizona bitcoin trader been convicted for using the cryptocurrency to launder the proceeds of drug deals. Thomas Mario Costanzo, who goes by Morpheus Titania on Twitter and operated a peer-to-peer bitcoin exchange website, was found guilty of charges of five money laundering by a federal jury in Phoenix on March 28, according to a Justice …

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Two South Korea financial regulators are reportedly launching a probe into domestic banks over their implementation of anti-money laundering procedures for cryptocurrency exchanges. According to a report from Yonhap, the Financial Intelligence Unit and Financial Services Commission (FSC) will launch the inspection starting next month at banks offering corporate accounts to cryptocurrency exchanges. The investigation, …

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Police officials in Rio de Janerio have uncovered a money laundering scheme in which state officials siphoned off money intended for prison supplies, using bitcoin to exchange some of the proceeds. The scam involved misstating the budget spent on food for state-run prisons, ultimately diverting funds worth $22.4 million – though only a small portion of the …

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International Monetary Fund (IMF) Chief Christine Lagarde said that crypto markets must be regulated by the same laws that apply to the traditional markets in an IMF blog post published today, March 13. The post, “Addressing the Dark Side of the Crypto World,” begins by praising the virtues of Blockchain technology, which she refers to …

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The head of the International Monetary Fund (IMF), Christine Lagarde, has said regulators should use blockchain technology to curb the “peril that comes along with the promise” of cryptocurrencies. “The same innovations that power crypto-assets can also help us regulate them. To put it another way, we can fight fire with fire,” Lagarde wrote in an …

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Japan will call on the G20 member governments to concentrate on developing a common anti-money laundering (AML) strategy for cryptocurrencies during the annual summit in Buenos Aires on March 19-20, Reuters reports March 13, quoting a “government official with direct knowledge of the matter.” Japan’s government official told Reuters that at the moment the country’s …

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Japan is reportedly planning to use a G20 meeting next week to call for combined regulatory efforts to combat the use of cryptocurrencies in money laundering. The news comes via a Reuters report citing a government official with knowledge of the situation. However, the likelihood of the G20 finance chiefs uniting on new international rules …

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A well-known economist has predicted a steep drop in the price of bitcoin over the long-term. Kenneth Rogoff, a Harvard professor and former chief economist at the International Monetary Fund, said on CNBC’s Squawk Box program on Tuesday that he expects a fall to as low as $100 over the net decade. Rogoff remarked on the …

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