Regulators are cracking down on financial privacy, but ZK-proofs can help

The convergence of ZK-proofs and decentralized identity systems could create more compliant privacy-preserving protocols, without sacrificing user privacy.

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A Further Crackdown On Bitcoin Mixing Services Will Hurt Human Rights Activists

The charges brought against Samourai Wallets founders could be part of an international effort to limit Bitcoin privacy-preserving technologies, which would hurt those who need these technologies the most.

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Crypto Mixer Operator Found Guilty for Laundering $400 Million

Roman Sterlingov, the operator of the $400 million Bitcoin Fog crypto mixer, was convicted of money laundering and other related charges in the United States yesterday (Tuesday). The verdict came after a four-week-long trial.

Convicted of Operating a Crypto Mixer

The 35-year-old is a citizen of Russia and Sweden and has now been convicted of multiple charges, including conspiracy to launder money, engaging in sting operations to money laundering, running an unlicensed money transmitting business, and violations of the D.C. Money Transmitters Act.

According to the US Justice Department, Bitcoin Fog was one of the longest-running and most prolific Bitcoin money laundering services on the darknet. The platform was operated by Sterlingov from October 2011 to April 2021 and offered services to criminals seeking to hide their illicit proceeds from law enforcement.

The platform moved more than 1.2 million Bitcoin, valued at about $400 million at the time of the transactions. These cryptocurrencies mostly came from darknet marketplaces and were tied to illegal narcotics, computer fraud, and abuse activities, and identity theft. The platform further served purveyors of child sexual abuse material.

The jury further granted forfeiture of seized assets belonging to Bitcoin Fog, including over 1,354 Bitcoin held in the platforms wallet, $349,625 in cash, and other cryptocurrencies seized from the accounts on Kraken.

The Sentencing Is Due

Sterlingov is now looking at a maximum prison sentence of 50 years for all the conviction counts combined. His sentencing has been scheduled for July 15, 2024.

Roman Sterlingov thought he could use the shadows of the internet to launder hundreds of millions of dollars in Bitcoin without getting caught. But he was wrong, said Deputy Attorney General Monaco.

Jim Lee, the IRS Criminal Investigation Chief, stated: Evidence presented at trial clearly showed that the defendant laundered hundreds of millions of illicit funds from the dark web through Bitcoin Fog in an attempt to conceal the origin of those funds.

Meanwhile, the lawyer representing Sterlingov, Tor Ekeland, tweeted about their decision to appeal against the jury verdict.

Guilty verdict in U.S v. Sterlingov. Now we appeal.

The conviction of Sterlingov cements the US authorities stance to go against the Bitcoin mixing services. Earlier, US prosecutors charged Roman Semenov and Roman Storm, the founders of Tornado Cash, another crypto-mixing service. The duo were blamed for laundering about $1 billion in dirty money, and the trial is scheduled for later this year.

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Bitcoin Fog Founder Convicted of Money Laundering

Roman Sterlingov, the founder of long-running cryptocurrency mixer Bitcoin Fog, was convicted by a federal jury in Washington on Tuesday of facilitating the laundering of over 1.2 million bitcoins worth about $860 million at todays prices tied to darknet marketplaces.Source: CoinDesk

The post Bitcoin Fog Founder Convicted of Money Laundering appeared first on Crypto Breaking News.

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US Senate approves national defense bill that also targets crypto mixers

The United States Senate passed the 2024 National Defense Authorization Act (NDAA) worth $886 billion on the evening of July 27. The bill includes a provision that targets crypto mixers, anonymity-enhancing coins and institutions that are engaging in crypto trading.  The NDAA is a bill that helps authorize how the country’s defense department can utilize [...]

The post US Senate approves national defense bill that also targets crypto mixers appeared first on Crypto Breaking News.

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Into the storm: The murky world of cryptocurrency mixers

A handful of obfuscation protocols are competing for the user base of OFAC-sanctioned Tornado Cash.

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Chainalysis Partners with US Regulators to Recover $30m from Ronin Loot

Blockchain analytics and security service provider, Chainalysis has helped in the recovery of $30 million in funds stolen from the Ronin Bridge by the elite North Korean hacking outfit, Lazarus Group. (Read More)

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Crypto Mixer Blender Slapped With Sanction For Its Role In $620M Axie Infinity Hack

Centralized crypto mixer Blender.io got hit with first of its kind sanctions over its alleged role in the infamous $620 million online gaming platform Axie Infinity by the U.S. Department of the Treasury’s Office of Foreign Assets Control [OFAC]. As per the press release, Blender was used in processing over $20.5 million of the stolen […]

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Axie Infinity Ronin bridge hacker moved 2000 ETH to the Tornado Cash tumbler

As reported by CryptoSlate last week, a hacker ran off with about $615 million in ether () and stablecoins after exploiting a multisig contract regulating funds in the Ronin-to-Ethereum bridge – Ronin being the blockchain behind Axie Infinity, the most popular play-to-earn game in the world.

The post Axie Infinity Ronin bridge hacker moved 2000 ETH to the Tornado Cash tumbler appeared first on CryptoSlate.

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Crypto Mixers are “not inherently illegal” despite their bad rep, says Expert

Crypto Mixers such as the popular Tornado Cash have gained notoriety over the years as criminals used these software tools to launder millions of dollars worth of cryptocurrency. There were several such instances of misuse in the past. Last year, an Ohio native operating a Bitcoin mixer called Helix pleaded guilty to laundering more than $300 million. […]

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Report: Biden Administration ‘Crypto Tsar’ Says DOJ will Target Digital Asset Exchange Platforms

According to Eun Young Choi, the head of the crypto unit at the U.S. Department of Justice (DOJ), the United States has resolved to target digital platforms because they are making it easy for criminals and money launderers. Choi said the DOJ hopes taking action against entities such as crypto exchanges is “going to have

The post Report: Biden Administration ‘Crypto Tsar’ Says DOJ will Target Digital Asset Exchange Platforms appeared first on BTC Ethereum Crypto Currency Blog.

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Trump admin unlikely to change Tornado Cash approach, Coinbase warns law firms: Law Decoded

The US Treasury, under a Trump administration, may bring reform to how courts handle crypto mixer-related incidents, following OFACs overreach in the Tornado Cash sentencing.

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Push to ban ransomware payments following Australia's biggest cyber attack

The attack on Latitude Financial is Australia’s biggest cyber attack with driver's license numbers, passports and financial documents among the stolen information.

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Coin Center lawyers argue Tornado Cash is not property

The Coin Center lawsuit, first filed in 2022, noted that one plaintiff used Tornado Cash to protect his identity while donating money.

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Vitalik Buterin donates 100 ETH to Roman Storm defense fund

The United States Office of Foreign Assets Control sanctioned the Tornado Cash mixer in 2022 accusing it of facilitating money laundering.

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