reply to statements separately
Kim/part one
first case to come to mind is the recent case against Robinhood Crypto LLC. The investigation into Robinhood Crypto LLC was initiated due to lax security procedures by the New York Department of Financial Services. According to the Wall Street Journal, New York regulators alleged “certain deficiencies in our policies and procedures regarding risk assessment, lack of an adequate incident response and business continuity plan, and deficiencies in our application development security.” Financial firms are required to have anti-money-laundering programs that include collecting basic customer data, responding to law-enforcement requests, and evaluating transactions for risks such as sanction violations while also mandating companies maintain cyber defenses and contingency plans in the event of a hack. The impact of this case on future money laundering cases is that it sets a precedence in the requirements set in place for financial firms. The world of virtual currency is expanding and with that expansion comes increased scrutiny by regulators to ensure they are protecting consumers from unlawful transactions.
part two/Kelly
Binance. It is one of the world’s largest cryptocurrency exchanges, had bitcoin (Links to an external site.) worth $40 million stolen in May. While it is uncommon to see an established exchange like Binance get hacked, the cybercriminals managed not only to steal 7,000 bitcoin but also two-factor authentication codes and API tokens. Binance also revealed that the hackers were able to compromise very high net-worth accounts. Despite the hackers getting away with $40 million worth of bitcoin, the impact wasn’t too great for Binance because it was only 2% of the exchange’s overall holdings. The hackers had the patience to wait, and execute well-orchestrated actions through multiple seemingly independent accounts at the most opportune time. The transaction is structured in a way that passed our existing security checks. It was unfortunate that we were not able to block this withdrawal before it was executed. The cryptocurrency exchange also said in the statement that it would use its self-insurance fund, SAFU, to cover user losses. For the future companies will try to match the currency transaction to the customers information to make sure this transaction is legit. With technology evolving the increase in these types of crimes will continue to grow unless businesses make an effort to catch them and keep track of employees transactions.
part three
refer to readings
https://www.acams.org/wp-content/uploads/2015/08/Combating-the-Proliferation-of-Mobile-and-Internet-Payment-Systems-as-ML-Vehicles-S-McCrossan.pdf
http://www.fatf-gafi.org/media/fatf/documents/reports/Virtual-currency-key-definitions-and-potential-aml-cft-risks.pdf
Justice Department charges Deep Dot Web administrators with money laundering
answer
with emerging technology that will impact how criminals launder money, what other forms of technology do you think we need to be concerned with? Or do you think the topics discussed this week are all we should be concerned with?
