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Considering the 2023 Tainted Cryptocurrency : Recovery Bill Civil liberties, privacy and due process – Cook Islands News

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Considering the 2023 Tainted Cryptocurrency : Recovery Bill Civil liberties, privacy and due process – Cook Islands News


Cook Islands crypto expert Ano Tisam raises some serious concerns about civil liberties, privacy and due process in the 2023 Tainted Cryptocurrency Recovery Bill currently making its way through Parliament. SUPPLIED/23121406

This week the 2023 Tainted Cryptocurrency Recovery Bill was tabled in Parliament and referred to a select committee for consideration and report. Cook Islands crypto expert, Ano Tisam says the Bill, making its way through Parliament, raises some serious concerns about civil liberties, privacy and due process. Melina Etches reports.

What is cryptocurrency?
According to Google, cryptocurrency is digital money that doesn’t require a
bank or financial institution to verify transactions and can be used for
purchases or as an investment. Transactions are then verified and recorded on a
blockchain, an unchangeable ledger that tracks and records assets and trades.

Cryptocurrencies
(or “crypto”), such as Bitcoin, have many applications. They can be used as
alternative payment rails, speculative investments, or as a store of value, to
name a few.

Cryptocurrencies
get their name from the cryptographic techniques that let people spend them
securely without the need for a central government or bank.

While the Tainted Cryptocurrency Recovery Bill includes several measures aimed at
addressing these concerns, such as establishing a Cryptocurrency Restitution
Tribunal and provisions for judicial review, Tisam says “the effectiveness of
these safeguards in practice would be key to determining their sufficiency in
protecting Cook Islanders civil liberties”.

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The key
point is the advice for the legislative construct requires expert advice as
decisions made will impact future Cook Islands prospects in the crypto world,
he says.  

Lawyer Tim
Arnold, who drafted the Tainted Cryptocurrency Recovery Bill, briefed MPs on
the proposed law during a special briefing this week.

Tisam noted that
Parliament is engaging with cryptocurrency experts to ensure a more informed
and comprehensive approach to the Tainted Cryptocurrency Recovery Bill 2023 via
the Facebook group started up by Alex Olah, and the Cook Islands Internet
Action Group (CIIAG), a non-government organisation (NGO) made up of local
Information Technology (IT) experts.

Going
forward, for Parliament to ensure better collaboration and consultation with
cryptocurrency experts in future legislative processes, Tisam says the
legislation should not be rushed through.

“There’s a
lot of technicalities that most governments/legislators still have to wrap
their heads around,” he says.

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“The crypto
legislation being introduced could infringe on civil liberties and open up the
possibility of abuse.

“As well as
cryptocurrency, the underlying blockchain technologies have huge potential and
we don’t want to kill that potential by introducing legislation that could have
a negative impact on investment and the development of the technology.”

Schedule 1 of the Bill states: “The Powers and Procedures
having effect in relation to the Cryptocurrency Restitution Tribunal – An Act
having extraterritorial effect and providing for the systematic identification
of cryptocurrency that is tainted by proscribed conduct, to allow for its
seizure and forfeiture in certain circumstances, and to provide for
restitutionary claims and asset-sharing in respect of that cryptocurrency in
the Cook Islands.”

Tisam raises
his concerns regarding the Bill, which include:

Extraterritorial effect: “The concern is overreach into
international transactions – this could mean that your transactions and
holdings might be scrutinised or intervened upon by the Cook Islands’ authorities,
even if the activities occur outside their jurisdiction.

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“This broad
scope could lead to complex legal scenarios where conflicts with other
countries and questions about the enforcement of Cook Islands law
internationally. A recommendation is to limit scope to national jurisdiction.”

Civil forfeiture: “Risk of asset seizure without
criminal conviction, is a concern. The ability to seize assets without a
criminal conviction poses risks and raise concerns about property rights, due
process, and the potential for misuse. Innocent investors could potentially
have their assets frozen or seized if they are unknowingly linked to tainted
cryptocurrency or get sent tainted crypto.”

There is no need for criminal conviction: “Unlike criminal forfeiture, in rem
civil forfeiture (sanctions the confiscation of a defendant’s property before a
criminal conviction has been obtained) does not require a criminal conviction
of the property owner. The proceedings can occur independently of whether a
criminal charge or conviction is in place.”

Burden of proof: “The burden of proof is typically
lower in civil forfeiture cases than in criminal cases. The government may only
need to show that the property is connected to illegal activity by a
preponderance of the evidence, rather than beyond a reasonable doubt.”

Controversy and criticism: “This process can be controversial,
as it allows for the seizure of property without the need for a criminal
conviction, raising concerns about due process and property rights.”

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Judicial framework: “The establishment of a specialised
tribunal could lead to decisions made by bodies without traditional judicial
oversight, potentially affecting due process. A concern is decisions made
without traditional judicial oversight.”

Ethical recovery hacking: “This legitimises hacking for
recovery purposes, raising questions about the methods used and the security of
all cryptocurrency holdings. There are security and ethical concerns in hacking
methods, recommendation, and clear guidelines must be set.”

Privacy and confidentiality: “The focus on tracking could lead
to increased surveillance and data collection, impacting individual privacy and
confidentiality in financial dealings. A concern is increased surveillance and
data collection. Strict privacy safeguards must be implemented.”

Tisam argues
that if the Bill is really about money laundering and terrorism financing, then
the focus should shift to the “opaque” operations of banks, not
cryptocurrencies.

“Most retail
crypto investors here operate on public blockchains e.g. Bitcoin, Ethereum etc.
It would be silly to launder or finance terrorism using that way.”

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Tisam says
that according to the United State Treasury Department, the use of virtual
assets for money laundering remains far below that of fiat currency and more
traditional methods.

United
Nations research indicates anywhere between $800 billion and $2 trillion is
laundered via traditional fiat banking channels each year.

However,
cryptocurrencies are used in just a small fraction of such activity.

In
Thursday’s Parliament sitting, Minister of Justice, Vaine “Mac” Mokoroa moved for
the second reading of the Bill which was seconded by Member of Parliament (MP)
Tingika Elikana.

Mokoroa also
moved that the Bill be referred to a special select committee for consideration
consisting of the following members: Tukaka Ama – chair, Vaitoti Tupa – deputy
chair, and members – Akaiti Puna, Tuakeu Tangatapoto, Tim Varu, Toa Isamaera
and Tetangi Matapo.

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Before
seconding the motion, Elikana made a plea to the select committee to seriously
consider the “title” of the Bill.

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Crypto

Donald Trump Embraces Meme Coins—A Presidential First

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Donald Trump Embraces Meme Coins—A Presidential First

Donald Trump is making news once more, but this time it’s not for political reasons; it’s about cryptocurrency. As he prepares to return as the 47th President of the United States, Trump will become the first sitting president to own meme currencies, a decision that has stirred both enthusiasm and skepticism in the crypto community.

Trump: A Significant Crypto Portfolio

Recent sources claim that Trump’s crypto wallet consists largely of meme coins and is valued roughly $8 million. Among the assets are $1.5 million in a meme currency with Trump-themed design and $5.5 million in TROG tokens.

In addition, he has about 1.3 billion GUA coins, which amounts to nearly $400,000, and $167,000 in TRUMPIUS tokens. This is a first of its kind, where Trump becomes an oddity in the world of politics and cryptocurrency, considering his earlier reluctance towards digital assets.

From Skepticism To Support

Trump’s journey into the crypto world is notable. He had been a strong critic of Bitcoin and other cryptocurrencies, calling them scams. But that all changed in 2024 when he started publicly endorsing Bitcoin and speaking out for the right to own it. That’s a broader trend among politicians, who are increasingly recognizing the potential of cryptocurrencies and their growing popularity among voters.

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Trump’s financial success in the digital sphere was also aided by his venture into non-fungible tokens (NFTs) on Ethereum. Trump reportedly made a good living from these endeavors, and he currently owns roughly 496.77 ETH, which is worth about $1.6 million.

BTC is currently trading at $94,144. Chart: TradingView

Implications For Regulation

Many people are eager to see how Trump’s administration will regulate cryptocurrencies now that he is back in office. A possible change toward a more advantageous regulatory climate for digital assets is hinted at by the nomination of important individuals like David Sacks as “Crypto Czar” and Paul Atkins as SEC chair. This could result in more precise rules for investors and businesses involved in the cryptocurrency industry.

Trump

Donald Trump. Image: Ronda Churchill/Reuters

The policies by Trump are already changing market dynamics as everybody is anxiously awaiting them. During this time when Bitcoin hit a record high of $108k, while meme coins surged, analysts still feel that Trump could make the year 2025 a major turning point in cryptocurrencies.

Meme Coin Boom

The rise of Trump-owned meme coins is indicative of a broader cultural shift among younger investors who are fed up with established financial institutions. This combination of the political influence of Trump and the speculative nature of meme coins puts a scenario under which political events could significantly affect cryptocurrency markets. Thus, while the investors go about this, they are not ignorant of the volatility that is usually associated with meme coins.

Featured image from Fortanix, chart from TradingView

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Scammers steal $2 million in cryptocurrency from remote work seekers in New York, Florida 

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Scammers steal  million in cryptocurrency from remote work seekers in New York, Florida 

Scammers stole millions of dollars in cryptocurrency from remote job seekers in an elaborate scheme. New York Attorney General Letitia James has filed a lawsuit to recover over $2 million that she said was stolen from New Yorkers and others nationwide.

Scammers used unsolicited text messages to lure victims with promises of flexible, well-paying remote work opportunities. They claimed the job involved reviewing products online to generate market data. However, victims were told to open cryptocurrency accounts and maintain balances matching the price of products they were reviewing.

While victims believed they would receive their investments plus commissions, the funds were instead transferred into the scammers’ crypto wallets. The fake product reviews took place on a fraudulent website created as part of the scheme.

The lawsuit details seven people who were scammed. One victim, a New Yorker, lost over $100,000 while another victim from Florida lost over $300,000. These cases show the significant financial and emotional impact on the victims.

James’ office, working with Queens District Attorney Melinda Katz and her cryptocurrency unit, traced the stolen funds to specific digital wallets. Over $2 million in cryptocurrency has been frozen, ensuring it can be returned to victims.

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“Deceiving individuals seeking remote work is cruel and unacceptable,” said James. “We’re committed to holding scammers accountable and recovering stolen funds.”

Published By:

indiatodayglobal

Published On:

Jan 12, 2025

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Illegal Cryptocurrency Mixers Targeted: Operators Charged with Money Laundering – Regtechtimes

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Illegal Cryptocurrency Mixers Targeted: Operators Charged with Money Laundering – Regtechtimes

A federal grand jury in Georgia recently indicted three Russian nationals for their involvement in running illegal cryptocurrency mixer services that helped criminals launder money. The indictment, announced on January 7, 2025, involves Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachslavovich Tarasov. These individuals are accused of operating two online services called Blender.io and Sinbad.io, which helped criminals hide the source of their illegal funds.

A cryptocurrency mixer is a tool used to mix cryptocurrencies like Bitcoin, making it harder for authorities to trace the origin of digital money. These services are attractive to criminals involved in activities such as ransomware attacks and fraud, as they allow them to send funds anonymously.

Ostapenko and Oleynik were arrested in December 2024, while Tarasov is still on the run. The three men face serious charges related to money laundering and operating unlicensed financial businesses. If convicted, they could face up to 20 years in prison for laundering money and up to five years for running an unlicensed business. The indictment follows the earlier shutdown of the Sinbad.io service after it was seized by law enforcement in 2023.

The Role of Blender.io and Sinbad.io

Blender.io and Sinbad.io were both cryptocurrency mixers, meaning they offered a way to send digital money anonymously. For a fee, these services allowed criminals to send their funds without revealing where the money came from. This feature made these mixers attractive to those who wanted to hide stolen funds or profits from illegal activities, such as ransomware attacks, fraud, and even theft of virtual currencies.

Extradited for Fraud: Do Kwon Faces Justice After $40B Crypto Crash

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Blender.io operated from 2018 to 2022 and was known for its promise of anonymity. It advertised a “No Logs Policy,” meaning it claimed to have no records of transactions. The site also reassured users that no personal details were needed to use the service. This allowed criminals to send and receive Bitcoin without leaving a trace of their identity.

After Blender.io was shut down in 2022, the defendants launched Sinbad.io, which offered similar services. This service continued until law enforcement authorities took it down in November 2023, marking a significant victory in the fight against cybercrime. The shutdowns of both services were the result of coordinated efforts by authorities from several countries, including the U.S., the Netherlands, Finland, and Australia.

Both Blender.io and Sinbad.io were not only used by ordinary criminals but were also linked to state-sponsored hacking groups. For instance, Blender.io was used by North Korean hackers to launder funds stolen through cyberattacks. Similarly, Sinbad.io had connections to cybercriminals who targeted businesses and individuals. These cryptocurrency mixers served as a vital tool in helping these criminals profit from their illegal activities, making it harder for authorities to trace the stolen money back to its original source.

Crypto-currency Scam Wipes Out $425,000 from Ohio Man’s Retirement Fund

International Cooperation in Combating Cybercrime

The investigation into Blender.io and Sinbad.io showcases the power of international cooperation in tackling cybercrime. The indictment was made possible by the joint efforts of law enforcement agencies from different countries, including the U.S. Department of Justice, the FBI, the Netherlands’ Financial Intelligence Service, and Finland’s National Bureau of Investigation. Their collaboration helped track down the operators of these illegal services and ultimately led to their takedown.

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In addition to the U.S. authorities, international agencies like the Australian Federal Police and Finland’s National Bureau of Investigation played key roles in the investigation. Their contributions were essential in identifying the people responsible for running these cryptocurrency mixers and disrupting their illegal activities.

The importance of international cooperation cannot be overstated. Cybercrime often crosses national borders, and without the efforts of multiple countries working together, it would be much harder to stop these crimes. The arrests of Ostapenko and Oleynik, along with the ongoing search for Tarasov, send a strong message to cybercriminals around the world: law enforcement agencies are committed to identifying and holding accountable those who operate illicit financial networks.

This case highlights how dangerous these cryptocurrency mixers can be in enabling serious criminal activities. By breaking down these networks, authorities are making it harder for criminals to profit from their wrongdoing, while also protecting public safety and national security.

To read the original order please visit DOJ website

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