Most crypto assets can revolutionize money transfers and the efficiency of global payments. However, some of its characteristics increase the risks of terrorist financing and money laundering. scale of the illegal use of crypto funds is significant. Above all, it emphasizes the need for CFT / AML supervision and regulation.
In 2019, approximately $ 11 billion (1.1%) of all cryptocurrency transactions were linked to crime-related activities. As a result, regulators around the world responsible for anti-money laundering law enforcement have investigated illegal activities involving crypto assets.
If Cryptos becomes more than just a sideshow in the financial world, regulation will be a vital part. Today, we will focus on some of the largest crypto fund seizures and the war against the illegal use of cryptocurrencies.
$ 1 billion in Bitcoin
At the top of our list are thousands of Bitcoins worth $ 1 billion that the US government seized in 2020. Cryptocurrencies were reportedly linked to the sale of illegal drugs and goods through from Silk Road, a dark web marketplace. shut down in 2013.
During its days, the Silk Road was ranked as the most notorious online crime marketplace. However, after the successful conviction of its founder, Ross Ulbricht, an important question remained. Where did all the money go?
US agencies tracked down the illegal funds after noticing a transfer from a Bitcoin wallet. This wallet was none other than the fourth largest balance in the world. IRS agents point to 54 new bitcoin transactions by Silk Road robbers, which appeared to be the product of illicit activities.
$ 160 million of crypto funds
In June 2021, the UK Metropolitan Police Announced the largest cryptocurrency seizure in history at the time, which is also one of the largest seizures in the world. This was about £ 114 million and more than double the amount seized by Scotland Yard in all of 2020. authorities discovered this amount with the help of intelligence. More exactly, they were informed about the transfer of a large amount in connection with criminal activities.
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Crypto assets seized during a press release are reported to be linked to a money laundering ring that officials are investigating. However, officials did not identify the exact cryptocurrencies among the confiscated funds because investigations are still ongoing.
Cash transactions remain the world leaders in the financing of illicit activities and money laundering. Still, changes in technology have introduced more sophisticated methods. Cryptocurrencies have also become the preferred payment method for ransomware attackers.
4.2 billion connected to the token Plus Ponzi scheme
months-long saga of the alleged Ponzi Scheme took a new turn after Chinese police seized $ 4.2 billion worth of crypto assets connected to this scheme. Among the confiscated funds were 833,083 in ETH and 194,775 BTC. Also, there were 27.6 million EOS, 487 million XRP, 6 billion DOGE, 79,581 BCH, 213,724 USDT, 74,167.
DASH and 1.4 million LTC.
PlusToken was a South Korean-based exchange where millions of people invested but were unable to withdraw their funds. scammers dumped the embezzled funds onto crypto exchanges in an attempt to hide them. investment promised big payoffs in returns, from 8% to 16%. developers mainly traded in South Korea and China. However, some of the exchange’s clients came from North America and Europe.
scheme targeted a majority audience of people who were unfamiliar with cryptocurrencies, which is why around 3 million people were reported as fraud. Subsequently, the arrest and conviction of fifteen people in connection with this case made headlines.
$ 408 million for British Police
In July 2021, the British seized £ 294 million ($ 408 million) as part of an investigation into money laundering by organized criminal groups that moved into crypto assets to launder their dirty money.
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Police arrested a 39-year-old woman who was on suspicion of money laundering. This happened after the first $ 250 million loot was discovered. However, the authorities refused to reveal the exact cryptocurrencies that were part of the money laundering scheme. However, some journalists claimed that the seized crypto assets were in Bitcoin.
$ 3 billion in Bitcoin
United States Department of Justice seized 70,000 Bitcoins in February 2021 that were linked to corrupt federal agents: Carl Mark Force IV and Shaun Bridges. Both men were investigators in a case involving Silk Road. However, both ended up in prison for committing some crimes of their own, including robbery and extortion. Subsequently, the police confiscated the funds from a person under the pseudonym Individual X.
In addition to the 70,000 Bitcoins, the Singles X contained a similar number of derivative coins. Among them were Bitcoin Gold, Bitcoin SV, and Bitcoin Cash. se other coins combined are worth around $ 50 million. All the coins are currently in a crypto wallet under the control of the Department of Justice.
In the past, the agency sold seized Bitcoins through auction sales conducted by the US Marshals Service.se auctions include the fortune of Ross Ulbricht, who ran the Silk Road and is currently serving a life sentence in prison.
$ 47 million crypto funds in South Korea
South Korean authorities seized more than Won53bn in Ethereum, bitcoin and other crypto assets from approximately 12,000 people in June 2021 who were accused of evading taxes. seizure came after a broader investigation into the tax owed by some 140,000 people. This was the largest crypto seizure in Korean history.
Like the US, South Korea is working to prevent tax evasion through crypto transactions. This is part of a broader global trend towards better regulation of cryptocurrencies. South Korea’s 60 crypto exchanges should comply with strict regulations to continue operating from September 2021.
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seizure of cryptoassets by regulatory authorities has been on the rise in recent years. Cryptocurrencies provide speed and anonymity in transactions, but authorities can still crack down on illegal transactions.
This regulation will help establish an order to prevent negative use of cryptocurrencies. responsible agencies have ensured that they will not back down in the war against the illegal application of cryptocurrencies. While most crypto users are legitimate and want to trade, it is essential to recognize some illegal uses. refore, regulation is vital to prevent cybercrime.