Blockchain and Cryptocurrency, Cryptocurrency Fraud, Fraud Management and Cybercrime
Also: $3.3 million socket hack.Trial of Do Kwon and Alex Mashinsky
Rashmi Ramesh (Rashmila Mesh_) •
January 18, 2024
ISMG compiles cybersecurity incidents in digital assets weekly. This week, the U.S. Securities and Exchange Commission announced that it is still assessing the impact of the The case has been postponed until March 25th, and Alex Mashinsky’s lawyer announced that he has asked for two charges to be dismissed. , Google Play Store removed crypto apps for Indian users, IRS clarified reporting of crypto assets, and South Korea said it was considering legislation to ban the use of crypto mixers.
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SEC says full impact of X account hack still unknown
U.S. Securities and Exchange Commission on Friday Said The company is still assessing the impact of the January 9 incident in which hackers took over the company’s social media account “X” (formerly Twitter) to spread fake news about the commission’s approval of the Spot Bitcoin exchange-traded fund. That’s where I’m at.
It said there was “no evidence” that hackers had access to SEC systems, data, devices or other social media accounts. The agency requested an investigation from the SEC’s Office of Inspector General, the FBI, and the Cybersecurity and Infrastructure Security Agency.
House Financial Services Committee Chairman Patrick McHenry, Representative Bill Huizenga (Michigan), Representative French Hill (Arkansas), and Representative Anne Wagner (Missouri). I was demanded to Lawmakers called the lack of two-factor authentication “unacceptable” and said they “look forward to the SEC adhering to the same requirements imposed on businesses across the country.” The SEC’s cybersecurity risk management rules require companies to disclose “material” cybersecurity incidents within four days.
$3.3 million socket hack
Blockchain protocol Socket has suspended some operations after hackers stole $3.3 million. “Socket experienced a security incident impacting wallets with unrestricted approvals for Socket contracts,” the company said. Said on tuesday.Discovered by an anonymous researcher passing by Spreak In X, hackers appear to have stolen funds in just a few minutes.pec shield fixed The value of the stolen funds was $3.3 million, and the exploit was the result of incomplete validation of user input, which the hackers exploited to steal funds from those who approved vulnerable SocketGateway contracts. .
Judge forces Do Kwon trial
federal judge changed Trial Date for Terraform Labs and its Co-Founder Do Kwon – $40 Billion Crypto Fraud Charges case – The United States allows Mr. Kwon to be extradited and to attend trial. U.S. District Judge Jed Rakoff postponed the date from Jan. 29 to March 25, saying he would not tolerate any further delays whether Kwon is extradited or not. The SEC’s civil lawsuit against Terraform and Kwon focuses on: collapse Its cryptocurrency tokens TerraUSD and Luna.
Former Celsius CEO aims to have charges dropped
Lawyers for former Celsius CEO Alex Mashinsky have filed a motion to dismiss two felony counts related to commodity fraud and market manipulation against him. report Cointelegraph. Macinski’s lawyers said the second count of commodity fraud is “objectionable” and “inconsistent” with the first count of securities fraud, based on the government’s treatment of virtual currencies. “It is inconsistent and illogical to consider the Earn Program to be a security for purposes of count 1 and a commodity for purposes of count 2,” the report said, citing the filing. U.S. law enforcement arrested Mashinsky six months ago on suspicion of involvement in the collapse of the Celsius network.He pleaded not guilty to all seven charges. Fee These include securities fraud, commodity fraud, wire fraud, misleading investors, and conspiracy to manipulate the value of Celsius Network’s native token CEL. Mr. Mashinsky was released on $40 million bail and is likely to stand trial in September.
Google Play Store removes crypto apps
India’s Google Play Store removed the app after the country’s government issued violation notices against crypto exchanges Binance and OKX. report Cointelegraph. Earlier this month, Apple announced that after India’s Ministry of Finance’s Financial Intelligence Wing issued notices to Binance, Huobi, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex for non-compliance with tax laws. India’s App Store also made a similar move. . Existing Android users can still access the Binance application and his website.
IRS clarifies rules for reporting crypto assets
U.S. businesses will not have to report digital assets in the same way as cash until the Internal Revenue Service issues new regulations. Said. Infrastructure Investment and Employment Act, which came into force in November 2021; need Businesses must report virtual currency transactions of $10,000 or more. The IRS response stems from the CoinCenter lawsuit. To tell The rule would “impose a regime of mass surveillance on ordinary Americans.”
South Korea considers bill to restrict use of blenders
South Korea is reportedly working on enacting legislation similar to the US that would restrict the use of crypto-mixing services to prevent money laundering.The country’s financial regulator, the Financial Intelligence Service, has begun discussing the need for regulation, local news platforms reported, adding that the United States is also joining the discussion. eccentricity.
Other coverage from last week