The CEO of Bitcoin exchanger BitInstant has been arrested and charged with money laundering over allegations that he and another man sold more than $1 million in Bitcoins to buyers and sellers of drugs on the underground drug site Silk Road.. Charlie Shrem, 24, who ran BitInstant out of New York, is charged, along with Robert Faiella, with conspiracy to commit money laundering and operating an unlicensed money transmitting business, according to the complaint (.pdf), filed in the Southern District of New York. The charges come three months after the underground drug emporium was shuttered by law enforcement and its alleged founder, Ross Ulbricht, arrested. The link for this article located at Wired is no longer available. . The CEO of cryptocurrency exchange BitInstant faces accusations of facilitating the laundering of $1 million associated with the Silk Road narcotics market.. Bitcoin Exchange, Financial Crimes, Money Laundering, Cryptocurrency, BitInstant. . Alex
US federal prosecutors have unsealed the indictment of seven men who were allegedly involved in the Costa-Rica-based digital currency and exchange service, Liberty Reserve. Authorities in the US had already seized the service's domain, effectively shutting down its web site. late last week. The site's founder Arthur Budovsky Belanchuk, a former US citizen who now holds Costa Rican nationality, was arrested in Spain on Friday. The indictmentPDF charges the defendants with money laundering and conspiracy to operate an unlicensed money transmitting business and orders them to surrender all property in connection with the Liberty Reserve operation, including more than $6 billion the site is believed to have laundered since 2006. Millions of dollars of these proceeds have allegedly been deposited in bank accounts around the globe, including in Costa Rica, China, Russia and Morocco. The investigation involved officials from 17 countries. The link for this article located at H Security is no longer available. . late last week. The site's founder Arthur Budovsky Belanchuk, a former US citizen who now holds Cost. federal, prosecutors, unsealed, indictment, seven, allegedly, involved. . Alex
To understand the crime of identity theft and to see why it is such a rapidly growing problem you need to go back a few years. At that time here were criminal gangs that needed to launder the proceeds of their crimes. In the seventies and early eighties the banking industry with its centuries old code of secrecy was just what any self-respecting criminal needed. To open a bank account was a simple matter and the banks were keen to gain new customers. The days when it was a privilege to be allowed to have a bank account went out in the early seventies and the banks were fighting each other for business. . . .. To understand the crime of identity theft and to see why it is such a rapidly growing problem you need to go back a few years. At that time here were criminal gangs that needed to launder the proceeds of their crimes. In the seventies and early eighties the banking industry with its centuries old code of secrecy was just what any self-respecting criminal needed. To open a bank account was a simple matter and the banks were keen to gain new customers. The days when it was a privilege to be allowed to have a bank account went out in the early seventies and the banks were fighting each other for business. At this time the country was seeing a massive growth in the smuggling of illegal drugs. Before the war, the use of cannabis and cocaine was legal but limited to the middle and upper classes. After the war the use of these drugs was banned and for a while the problem seemed to go away. In the sixties, the use of recreational drugs started to become widespread among the youth of the day and the suppliers of these illegal drugs needed to legitimise the proceeds of their trade. They were able to open bogus bank accounts very easily. For a while there seemed little that the Police could do about this growth industry so the Government of the day introduced legislation to try to combat the massive problem of money laundering. With the growing threat from terrorism, the laws were tightened further to the point whereit became extremely hard to create a false identity and open a bank account. It is these restrictions that we all have to accept when we want to use the financial services available. A good example here is when a bank and its staff know us, yet we have to again prove our identity when we wish to open another account. The link for this article located at ebcvg.com is no longer available. . As identity theft rises alongside banking challenges, more victims face financial fraud. Banks enhance security measures and technology in response to this growing threat. Identity Theft, Banking Crime, Money Laundering. . LinuxSecurity.com Team
A crackdown on Internet fraud schemes dubbed Operation Cyber Sweep has netted 125 arrests or convictions and more than 70 indictments, federal law-enforcement officials say.. . .. A crackdown on Internet fraud schemes dubbed Operation Cyber Sweep has netted 125 arrests or convictions and more than 70 indictments, federal law-enforcement officials say. The operation began Oct. 1 and involved more than 125,000 victims with losses estimated to exceed $100 million. Department of Justice officials said Thursday that more than 90 search-and-seizure warrants were conducted. Operation Cyber Sweep targeted some of the most common online fraud schemes, including identity theft, international money laundering, theft of business trade secrets, auction fraud, Web-site-spoofing schemes, and cyberextortion. The operation was a coordinated effort among 34 U.S. attorneys, the FBI, the Federal Trade Commission, the Postal Inspection Service, the U.S. Secret Service, and the Bureau of Immigration and Customs Enforcement, as well as other local, state, and foreign law-enforcement authorities. The link for this article located at SecurityPipeline is no longer available. . The Digital Enforcement Initiative results in 150 detentions tied to numerous internet scam operations, affecting upwards of 150,000 individuals.. Internet Fraud Schemes,Cybercrime Enforcement,Operation Cyber Sweep. . Anthony Pell
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