Daegu District Court fines founder of Ministry of Justice for "money tornado"
Author: Joanna F. Wasik
On August 17, a federal court in Texas declared Tornado Cash, a crypto mixer (which mixes the source of crypto transactions), a criminal enterprise. Tornado Cash is a mixer that acts as a Decentralized Autonomous Organization (DAO) based on the Ethereum network and distributes smart contracts for the governance token “TORN”. Last year, the U.S. Treasury Department sanctioned Tornado Cash for helping North Korean hackers launder money. Tornado Cash sued the ministry, arguing, among other things, that the ministry is not an "entity" under the ministry's jurisdiction, but is a decentralized open source software project. Therefore, it is further argued that the Department's actions exceeded its authority and violated the freedom of expression and constitutional protections of due process. The Court disagreed, concluding that Tornado Cash is a company governed by applicable US law (consisting of its founders, developers and DAO) and that the Department's sanctions are inconsistent with US law. The ruling marks the first time a federal court has considered the designation of crypto mixers.
On August 23, the department announced that the Office of Foreign Assets Control (OFAC) had sanctioned Roman Semenov, one of the three founders of Tornado Cash and Lazarus Group, for providing material support to a North Korean company. Hacker groups using mixed services. According to the agency's press release, Russian citizen Semenov was informed that Tornado Cash was used to launder a large amount of virtual currency stolen by the Lazarus Group. However, he allegedly continued to pay for the infrastructure supporting the Tornado Cash service and took steps to increase the anonymity of the Tornado Cash service without resorting to known prohibited practices. As a result of the Department's action, Semyonov was placed on OFAC's National and Unlisted Individuals Registry, and all of Semyonov's U.S. assets must be frozen and reported to OFAC, and all contact with Semyonov is prohibited.
At the same time, the US Department of Justice (DOJ) announced that Semenov and another founder of Tornado Cash, Roman Storm, were charged with "conspiracy to launder money, conspiracy to commit criminal offenses and conspiracy to commit commercial activities." License for cargo transportation. A press release from the US Department of Justice stated: “The charges relate to the alleged creation, operation and promotion of Tornado Cash. The group is a North Korean cybercriminal organization. The press release also states that Semyonov and Storm knew that Tornado Cash was being used for money laundering and criminal offenses, but "relinquished control and continued operation of the Tornado Cash service."
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Various financial companies announce crypto product updates and new offers
By Robert A. Musiala, Jr
According to a recent press release, the major US financial services company is "bringing together a group of leaders in blockchain technology and payment services to join a new CBDC partner program." The project's goals included a "good understanding" of the benefits and limitations of central bank digital currencies (CBDCs) and "their safe, consistent and profitable implementation," according to a press release. The first partner group of the project includes several well-established companies in the field of blockchain and digital assets.
A blog post from a major US crypto exchange has provided some updates on the USDC stablecoin. The blog post said, among other things, that US exchanges would make an equity investment in Circle, the USDC issuer, and that Circle would assume full control over the issuance and management of USDC. The Central Consortium, which functioned as an autonomous USDC Consortium, has been dissolved. The blog post also mentions that USDC will soon be launched on six new blockchain networks.
According to a recent report, Custodia Bank announced that it has received regulatory approval for its functional bank to accept US dollar deposits. The bank is also reportedly awaiting final approval to offer bitcoin deposit services to customers in various US states.
In a recent major development, the major multinational e-commerce platform has integrated "Solana Pay, an open-source, decentralized peer-to-peer payment protocol developed by Solana Labs at Solana," according to a press release. The press release says the integration will allow consumers to pay merchants on e-commerce platforms using "Solana-compatible USD stablecoins."
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European Bitcoin ETF, DeFi Solution Launch, BTC Price Data Released
By Robert A. Musiala, Jr
According to a press release, Jacobi Asset Management recently listed the Jacobi FT Wilshire Bitcoin ETF, a European exchange-traded fund (ETF) listed on the Amsterdam Stock Exchange, Euronext Amsterdam. According to a press release, the ETF is regulated by the Guernsey Financial Services Commission and custodial services are provided by a leading US cryptocurrency sponsor. The press release goes on to say, "Jacobi has implemented an integrated, verifiable REC (Renewable Energy Certificate) solution that allows institutional investors to benefit from Bitcoin while meeting ESG goals."
LeverFi, a decentralized finance (DeFi) startup, announced in a recent press release that LeverFi is partnering with a major US technology company to "launch an artificial intelligence decentralized financial solution that reduces user complexity and controls network wallets and development." corporate portfolios. Technology "OpenAI services, market-leading machine learning services and big data analytics." According to a press release, among other initiatives, LeverFi has launched "Morpheus... an AI wallet management assistant" to help existing and new users navigate the highly complex and fragmented DeFi landscape, gain valuable insights for portfolio management and live chain monitoring: via intuitive learning. identify market anomalies and respond to them.
The latest report highlights new research showing that the price volatility of Bitcoin (BTC) and Ether (ETH) has "declined significantly due to factors ranging from government policy to broader macroeconomic factors." According to the report, "Bitcoin's 90-day volatility index is 35%, while Ethereum is slightly higher at 37%." By comparison, the report says the global oil price volatility index was 41% over the same period. 90 days.
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The Treasury Department and the IRS have released proposed rules for brokerage sales of digital assets
By Nicholas C. Mowbray
On August 25, the U.S. Treasury Department and the U.S. Internal Revenue Service published proposed rules for reporting information on sales and exchanges of digital assets. The Infrastructure Investment and Jobs Act, which takes effect in 2021, clarifies and expands current broker reporting requirements to include digital asset brokers by including digital assets in the definition of certain securities. The press release states: "The proposed regulation would clarify and streamline the tax reporting rules for brokers so that digital asset brokers are subject to the same reporting rules as brokers of securities and other financial instruments." Form 1099-DA to help taxpayers determine whether they owe taxes and to help taxpayers avoid complicated calculations or paying taxes on digital assets." for preparatory services. Submit a statement" Taxpayers can express their comments on the proposed regulations. Comments are due 60 days after the rules are published in the Federal Register, and a public hearing is scheduled for Nov. 7.
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Singapore's MAS has completed the development of a regulatory framework for a stablecoin
By Robert A. Musiala, Jr
The new regulatory framework for Singapore's stablecoin was announced in a recent press release by the Monetary Authority of Singapore (MAS). The press release states: “The MAS Stablecoin Regulatory Framework applies to single currency stablecoins (SCS) issued in Singapore and pegged to the Singapore dollar or any other G10 currency that meet the following four key requirements:
- stable value. SCS reserve assets are subject to composition, evaluation, maintenance and testing requirements.
- Capital: Issuers must have minimum share capital and liquid assets to reduce the risk of insolvency and allow for an orderly liquidation of the company if necessary.
- Redemption at face value. The issuer must return the SCS denomination to the holder within five business days of the redemption request.
- Baptism. Issuers must provide users with relevant information, including mechanisms for stabilizing the price of SCS, the rights of SCS owners and the results of the reserve fund audit.
According to the press release, “only stablecoin issuers that meet all the requirements of this framework can apply to MAS to have their stablecoins listed and designated as ‘MAS-regulated stablecoins’ and "[t]he person who manipulates them ". The token may be sanctioned as a "MAS Regulated Stablecoin".
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The enforcement measures are aimed at banks that work with stablecoins without consent
Keith R. Von Murphy
Based on the latest announcements and the agreed suspension order, the US Federal Reserve Board (the Board) announced enforcement actions against Farmington State Bank of Washington State and its parent company, FBH Corporation. The board of directors previously approved Farmington's application to become the bank's holding company, subject to restrictions imposed by the bank itself and its major shareholders. These restrictions prevent banks from changing their business plans or taking other actions without permission. In 2022, the bank allegedly violated these restrictions by collaborating with third parties on information technology infrastructure related to public stablecoins. According to the cease and desist order, the bank's alleged violations included "entering into a non-binding agreement with a third party in which the bank agreed to cooperate with the third party" in exchange for "designing the necessary IT infrastructure." Get 50 percent and take necessary steps to implement the MoU. As a result of the foreclosure, the bank reportedly announced it was going out of business and selling its assets to Eastern Oregon Bank.
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Theft, break-in and exploitation. The cryptocurrency threat continues
Lauren Bass
The FBI recently discovered six Bitcoin wallets hosted by entities linked to the North Korean-linked TraderTraitor, from which approximately $40 million worth of Bitcoins were stolen. According to a press release, funds were seized in several international cryptocurrency heists earlier this summer.
These numbers are in line with a recent report by a leading digital asset compliance and risk management firm, which linked more than $2 billion in cryptocurrency theft in North Korea over the past five years and nearly $200 million in 2023 alone. According to this report, North Korea has made great strides not only in stealing cryptocurrencies, but also in laundering proceeds.
Accordingly, earlier this month it was reported that Exactly Protocol, a decentralized lending marketplace powered by the Optimism network, had completed a $12 million bridge. The hackers reportedly took advantage of an Ethereum contract, transferred a deposit to Optimism, and then returned the stolen funds to Ethereum.
In related news, the decentralized exchange RocketSwap has been hacked to obtain 471 ETH worth about $866,000. The exploit reportedly occurred as a result of "private key injection" from an Internet server.
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