Bitcoin Hedge Fund and CEO Slapped With $2.5 Million Penalty for Ponzi Scheme

A New York federal court has ordered cryptocurrency hedge fund Gelfman Blueprint, Inc. (GBI) and its CEO Nicholas Gelfman to pay over $2.5 million for operating a fraudulent Ponzi scheme, according to an official announcement published Oct. 18.

GBI is a New York-based corporation and denominated Bitcoin (BTC) hedge fund incorporated in 2014. As stated on the company’s website, by 2015 it had 85 customers and 2,367 BTC under management.

The order is the continuation of the initial anti-fraud enforcement action filed by the U.S. Commodity Futures Trading Commission (CFTC) against GBI in September 2017. The CFTC charged GBI for allegedly running a Ponzi scheme from 2014 to 2016, telling investors that it had developed a computer algorithm called “Jigsaw” which allowed for substantial returns through a commodity fund. In reality, the entire scheme was a fraud.

Per the announcement, GBI and Gelfman fraudulently solicited over $600,000 from at least 80 customers. Moreover, Gelfman set up a fake computer “hack” to conceal the scheme’s trading losses. It eventually resulted in the loss of almost all customer funds.

The current order charges GBI and Gelfman to pay over $2.5 million in civil monetary penalties and restitution. GBI and Gelfman are ordered to pay $554,734.48 and $492,064.53 in restitution to customers and $1,854,000 and $177,501 in civil monetary penalties, respectively.

James McDonald, the CFTC’s Director of Enforcement, said that “this case marks yet another victory for the Commission in the virtual currency enforcement arena. As this string of cases shows, the CFTC is determined to identify bad actors in these virtual currency markets and hold them accountable.”

Last month, the CFTC filed a suit with the U.S. District Court for the Northern District of Texas against two defendants for the allegedly fraudulent solicitation of BTC. Per the suit, defendants Morgan Hunt and Kim Hecroft were running two fraudulent businesses and misleading the public to invest in leveraged or margined foreign currency contracts, such as forex, binary options, and diamonds.

https://cointelegraph.com/news/bitcoin-hedge-fund-and-ceo-slapped-with-25-million-penalty-for-ponzi-scheme

Cryptocurrency Thieves On Track To Steal Over $1 Billion In 2018

By Nermeen Abbas

The total value of stolen cryptocurrency is expected to hit over $1 billion by the end of this year, which represents a 350% increase over the amount that was stolen in all of 2017, according to a new research from CipherTrace.

The U.S cybersecurity firm revealed that during the first three quarters of 2018, $927 million of cryptocurrency was reported as stolen from exchanges by hackers; $166 million was reported stolen since the second quarter, driven by an emerging trend toward more frequent and smaller cyber-attacks by sophisticated thieves.

According to CipherTrace 2018 Q3 Cryptocurrency Anti-Money, a quantitative analysis of all the transactions on the 20 top cryptocurrency exchanges globally, 97% of direct bitcoin payments from identifiable criminal sources were received by unregulated cryptocurrency exchanges.

Nearly 5% of all bitcoin sent to poorly regulated exchanges comes from criminal activity before the money is moved, undetected, into the global financial payments system.

The poorly regulated exchanges have laundered a significant amount of bitcoin, totalling 380,000 BTC, or $2.5 billion at today’s prices, which means that 36 times more criminal bitcoin was received by crypto exchanges in countries where AML is either lax or lacking.

The CipherTrace reports analyzed 45 million transactions at 20 top cryptocurrency exchanges globally between January 2009 until September 20, 2018. “There are likely 50% more criminal transactions than those that were traced for this report because criminals are typically very clever and deft at hiding their tracks,” the cybersecurity firm commented.

“This extensive research shows that regulation does have a direct correlation in hindering criminal activity, and we are on the right track to instill further trust in the crypto ecosystem. We will see the opportunities to launder Cryptocurrencies greatly reduced in the coming 18 months as Cryptocurrency AML regulations are rolled out globally,” commented Dave Jevans, CEO, CipherTrace and co-chair of the Cryptocurrency Working Group at the APWG.org.

The study shows that efforts to enact and enforce strong cryptocurrency Anti-Money Laundering (AML) regulations are drastically reducing criminal activity on digital currency exchanges.

It also marked a steadily growing number of cryptocurrency thefts, which included several heists in the $20-$60 million range; the data indicates a pattern of smaller robberies on a regular basis and sophisticated professional cyber thieves who carry out hacks at both the exchange and platform.

In the 2018 Q2 Cryptocurrency Anti-Money Laundering Report, CipherTrace revealed a three-fold increase in cryptocurrency thefts during the first half of 2018 compared with the entire year of 2017. Most notable were the $530 million worth of tokens stolen in Japan from Coincheck and $195 million worth of tokens stolen from BitGrail.

According to CipherTrace, criminals are expected to quickly launder the stolen tokens before stronger cryptocurrency anti-money laundering controls are deployed globally over the next 18 months.

Crypto Exchange ShapeShift Calls Money Laundering Claims ‘Deceptive

By Nikhilesh De

ShapeShift has issued a stinging rebuke of a Wall Street Journal investigative article that claimed the crypto exchange was used by criminals to launder money.

In a blog post published Monday, CEO Erik Voorhees said the news outlet’s report showed a misunderstanding of how cryptocurrencies work and that the article’s claims were factually incorrect.

Calling the claims “factually inaccurate and deceptive,” Voorhees wrote that his exchange had been working with the Journal for nearly half a year, but the final story “omitted relevant information” and showed that “the authors do not have a sufficient understanding of blockchain and our platform in particular.”

The article – published Friday – follows an investigation by the Journal into cryptocurrency exchanges. The authors concluded that some $88 million was laundered through 46 different exchanges over two years, with $9 million going through ShapeShift in that period. This was the largest sum sent through any U.S.-based exchange, the report said (though registered in Switzerland, ShapeShift operates out of the state of Colorado).

Voorhees wrote that “even if it was true” that $9 million was laundered through ShapeShift, it would represent only 0.15 percent of the exchange’s total volume. Moreover, the exchange has “a strong record of complying with law-enforcement requests, providing valuable assistance in over 30 investigations in 13 different countries all over the world.”

He also claimed users cannot launder fiat currencies through the exchange, saying:

“Unlike most other exchanges, ShapeShift is a crypto-to-crypto, non-custodial platform.  We don’t take custody of user funds, but instead swap our own assets for theirs, at a set price.  We don’t touch fiat currency, so users cannot swap their dollars/euros/yen for our bitcoin/ethereum/dogecoin. Not a single dollar, euro, or yen has ever been laundered through ShapeShift.  It can’t be done.”

Understanding transactions

Voorhees claimed that some fundamental misunderstandings of how wallet addresses work may have resulted in some of the Journal’s conclusions.

He cited one example, saying that funds from a suspicious transaction were sent to an exchange, which later sent funds to ShapeShift.

“Because ShapeShift happens to be a customer of this same exchange – 10 months later in a completely unrelated transaction – the exchange sent funds to ShapeShift. The authors didn’t understand how to properly read the blockchain transactions, so they assumed there was $70k in ‘dirty money’ sent to ShapeShift,” he wrote.

Voorhees said ShapeShift has asked the Journal for additional transaction information to verify other claims, but the news organization has so far not done so.

Data transparency

Voorhees also asserted that ShapeShift is one of the most transparent exchanges operating today.

Every transaction through the exchange is published online, despite the user privacy protections that it has maintained to date, he wrote.

The Journal relied on this information to conduct its investigation, he said, adding that “perhaps the irony is lost on the WSJ, but the WSJ would have been unable to do this kind of investigation with any other crypto exchange, because they aren’t transparent in this way.”

“Ultimately, we are trying to pioneer a new financial system,” he concluded. “We don’t expect to be loved by the old … yet ShapeShift has always been in favor of complying with the laws of the jurisdictions in which it operates, even though many of these laws are unclear, ever-changing, contradictory, and in some cases ineffective.”

Australian couple arrested for identity fraud and crypto money laundering

An investigation to online transactions that use stolen credit card conducted by Strike Force Breakbank has led to an arrest being made by the Australian authorities to a couple living in the south-west of Sydney.

The couple, whose names are not disclosed, is suspected for using stolen credit card to open 45 companies and bank accounts, which they used to receive the money from their fraudulent “business” activities.

They, then, laundered the money by purchasing digital currencies, including Bitcoin and put them into their offshore crypto accounts. According to The Sydney Morning Herald, the total amount of money used to buy cryptocurrency is AU$300,000 or around US$216,450.

For their crimes, the 32-year-old man was charged with 35 fraud-related offences, six identification fraud-related offences and knowingly dealing with proceeds of crime and refused for bail, while the 29-year-old woman was charged with 12 fraud-related offences and granted strict conditional bail.

Both of them are obliged to appear in the local court on Tuesday, October 9th.

Global standard for cryptocurrency anti-money laundering to be agreed

The global anti-money laundering task force has said it is closer to establishing a worldwide set of standards to apply to virtual currencies.

The president of the Financial Action Task Force, Marshall Billingslea, said he is optimistic that at its plenary, due in October, the FATF will agree a series of standards that will close the anti-money laundering “gaps” that all nations face.

“It is essential that we establish a global set of standards that are applied in a uniform manner,” he added.

The task force has accelerated its work and made significant progress on reaching a “consensus across nations” after the G20 requested the organisation tackle the issue as a matter of urgency.

In October, the FATF will discuss which of its existing standards need to be updated to address virtual assets, since its current recommendations do not acknowledge them. It will then revise the methodology it uses to assess how countries implement these standards and when this revised assessment methodology will take effect.

Mr Billingslea, who is also assistant secretary to the US secretary, said currently the adoption of anti-money laundering standards and regimes pertaining to digital assets and virtual currencies is “very much a patchwork quilt or spotty process,” which is “creating significant vulnerabilities for both national and international financial systems”.

China and South Korea have clamped down on the sector, while other countries — including France, Switzerland, Malta and Gibraltar — are drawing up regimes for formally policing the space in an attempt to attract fintech business.

UK MPs also highlighted on Wednesday the urgent need to regulate “Wild West” crypto-asset markets. The Commons Treasury select committee warned that a dearth of regulation around crypto-assets had left investors exposed to a “litany of risks” — without any of the protections usually afforded to consumers, such as access to compensation.

Cryptocurrencies are not regulated by central banks but are held digitally via electronic identities that in many cases allow their owners to remain anonymous. As a result, they have been linked to payments for prohibited goods such as guns and drugs and are a target for hackers.

Mr Billingslea said there were concerns of an emerging use of virtual currencies by terrorist organisations including Isis, as well as in extortion schemes, such as the WannaCry attacks.

His comments come after some observers argued that authorities such as Europol, Europe’s law enforcement agency, should devise a centralised system that flags cryptocurrency wallets linked to nefarious activities to major exchanges, so that they can block the owners from exchanging those funds for hard cash.

Despite the risks associated with digital assets, Mr Billingslea said they also presented “a great opportunity”. In terms of regulation, he said, “you can’t tilt too far in one direction or another” since blockchain, the technology that underpins virtual assets, “will continue to evolve”.

https://www.ft.com/content/1a67f6b2-bbf7-11e8-94b2-17176fbf93f5

House Passes Bill to Update Money Laundering Crypto Enforcement

By Jacob Rund

The Treasury Department’s anti-money laundering enforcement unit could soon see an update to its duties after the House advanced legislation aimed at prioritizing its focus on cryptocurrencies and other emerging technologies.

The FinCEN Improvement Act (H.R. 6411), which passed Sept. 12 on a voice vote, would add language to the Financial Crimes Enforcement Network’s governing law that requires it to coordinate with other countries’ financial intelligence units on cryptocurrency-related initiatives.

It would also add tribal law enforcement groups to the list of “partners” with whom FinCEN is tasked with working to combat money laundering and other activities that fund terrorism and organized crime. Those partners, according to U.S. code, include “federal, state, local, and foreign” law enforcement and regulatory authorities.

The bill “is an important step in modernizing FinCEN and ensuring our law enforcement and intelligence communities can detect and prevent criminals and terrorist networks from using virtual currencies” for money laundering and cyberwarfare, Rep. Ed Perlmutter (D-Colo.) said in July when the bill was introduced.

Rep. Steve Pearce (R-N.M.) joined Perlmutter in sponsoring the legislation.

Redundant?

“It’s an insult to small potatoes everywhere,” Ross Delston, a Washington attorney and anti-money laundering expert witness, said of the bill. It would give FinCEN authority that it already has to deal with activities involving cryptocurrency, he told Bloomberg Law.

FinCEN officials have stated that they will go after criminals using bitcoin and other virtual currencies to launder money and avoid the traditional financial system.

“As far as coordinating with tribal authorities, while that could in theory be an issue, it’s not going to come up an awful lot,” Delston said. “It’s a really minor issue.”

Regardless of these complaints, the bill passed with bipartisan support.

The bill, in addition to its language on cryptocurrencies and tribal law enforcement, contains a provision that would require FinCEN to support activities that protect against “terrorism,” rather than “international terrorism” as U.S. code now states.

Another Bill Coming

Another bill targeted at FinCEN’s information sharing and collaborative efforts will be considered this week. Financial Services Committee members plan to vote Sept. 13 on the 2018 FinCEN Modernization Act (H.R. 6721), which would instruct the bureau to create and maintain “research, development, and information sharing programs.”

It would allow FinCEN to enter into transactions with other government agencies, states, and “any agency or instrumentality” of the United States that furthers the goals of information sharing and developing new technologies. The bureau could also solicit and accept gifts from these parties.

The bill could provide an inside track for vendors to avoid the normal procurement process and land a government contract by offering cash or “in kind” gifts, Delston said.

Jailed Bitcoin expert subject of three-way fight over money-laundering inquiry

https://www.thenational.ae/business/technology/jailed-bitcoin-expert-subject-of-three-way-fight-over-money-laundering-inquiry-1.766673

A cryptocurrency expert languishing in a Greek jail may have a vantage point on a tantalising issue – how Russians in US Special Counsel Robert Mueller’s crosshairs used Bitcoin to obscure their money trail.

The expert, Russian citizen Alexander Vinnik, was detained last year after US prosecutors in San Francisco accused him of supervising a digital-currency exchange that helped criminals launder billions of dollars. That exchange, according to cryptocurrency analysis company Elliptic, handled some Bitcoins traced to Fancy Bear, a hacking unit. Fancy Bear is one of the names for the Russian military intelligence officers who Mr Mueller separately accuses of stealing and releasing Democrats’ emails to sway votes in the 2016 elections.

Three countries are fighting to extradite Mr Vinnik: Russia, France and the US. The link outlined by Elliptic could explain why – and why Russia has threatened retaliation against Greece if it hands him over to one of the others.

The next turn in the Greek matter comes Tuesday. The country’s Supreme Court is set to rule on extradition requests from France and Russia, which both allege that Mr Vinnik committed cybercrimes against their citizens.

Mr Vinnik is one of multiple Russian hackers indicted by the US, some of whom could provide insights into Russian cybercrime beyond their individual cases.

Yevgeniy Nikulin, who was extradited from the Czech Republic and is charged in San Francisco with hacking LinkedIn and Dropbox in 2012, is of interest in the US inquiry into election meddling, a Justice Department official said last week. Peter Levashov, a Russian programmer who has claimed he worked for Vladimir Putin’s ruling party, is charged in Connecticut with cybercrimes linked to spamming.

Mr Vinnik denies the US money-laundering accusations, according to his lawyer, Ilias Spyrliadis. He had no control over the $9 billion (Dh33.06bn) in Bitcoin that US prosecutors in San Francisco say ran through BTC-e, the cryptocurrency exchange, the lawyer said.

Mr Vinnik won’t comment on the Russian fraud accusations, Mr Spyrliadis said, and he denies the French charges including money laundering. Still, as an alternative to extradition, Mr Vinnik has offered to work with Greek and possibly other authorities from his current location, the lawyer said.

In the San Francisco case, the US says that Mr Vinnik and BTC-e catered to cybercriminals and allowed them to launder criminal proceeds from Bitcoin and other digital currencies and turn them into cash. The exchange didn’t vet customers, letting them move money in and out anonymously. To set up an account, according to the indictment, all a person needed was a username, password and email address, which often bore no relationship to the identity of the user.

That sort of service matches a description by Mr Mueller of how the Russian military intelligence officers layered transactions through cryptocurrency exchanges to maintain anonymity when they bought time on servers they used to launch attacks.

Elliptic used details provided in the indictment, such as a transfer of exactly 0.026043 Bitcoin on February 1, 2016, to search the electronic register of all Bitcoin transactions – known as the blockchain – to find specific payments. It then used software it has developed to identify the origin of the funds for those transactions.

“There was a strong link between much of the funds allegedly used by the Fancy Bear group and BTC-e,” said Tom Robinson, Elliptic’s chief data officer. “What I can’t say for certain is whether Fancy Bear obtained them directly from BTC-e, or whether there was an intermediary.”

Mr Vinnik couldn’t have known who, really, was using the platform, Mr Spyrliadis said. While Mr Vinnik was an expert working for BTC-e he was “in no way running it”, the lawyer said.

“Mr Vinnik could sometimes see a passport and ID when performing the transactions, but was in no place to know whether this person was using a fake ID, whether he or she was wanted by Interpol or involved in anything,” he said.

The US has been trying to get its hands on Mr Vinnik for more than a year. Greece’s Supreme Court ruled in December that he could be extradited to the US to face the charges in San Francisco. But the process has been stalled by the requests from Russian and France. Greece’s Supreme Court may well approve both the French and Russian requests, Mr Spyrliadis said.

That would punt the decision to Greece’s new justice minister. Before coming to any resolution on extradition, the Greek Justice Ministry will also need to examine a political asylum request by Mr Vinnik. A justice ministry spokeswoman said the minister couldn’t comment on the case as he has just assumed his post.

A co-operating Mr Vinnik would open the door to the US gaining strategic information on Russian hackers, said Arkady Bukh, the lead lawyer defending Mr Nikulin. Getting access to emails, names and bank accounts related to Russian hacking is what Mr Vinnik’s case in the US is really about, said Mr Bukh, who isn’t representing Mr Vinnik.

Cryptocurrency exchanges are “extremely important and of great interest to the US”, said Mr Bukh. He had been in touch with Mr Vinnik’s friends about getting him legal representation outside of Greece, he said.

But first, the US would have to get its hands on Mr Vinnik, something Russia appears dead set against.

A Greek regional court approved the French extradition request in July. Russia immediately lashed out at the country: “It is obvious the Russia cannot leave these actions unanswered,” its foreign ministry warned.

Later that same day, July 13, Mr Mueller rolled out his indictment against the Russian military intelligence officers.

Swiss watchdog to propose looser anti-money laundering rules for fintechs

By Brenna Hughes Neghaiwi

ZURICH (Reuters) – Swiss financial regulator FINMA is planning to loosen anti-money laundering rules for smaller financial technology firms, part of a drive to boost innovation and shore up the country’s position as a leading money management hub.

The revisions, prompted by a new ‘fintech’ licensing category carved out by the Swiss parliament in June, will clarify how non-banks applying for the new license must ensure due diligence.

“As a rule, all financial institutions are subject to similar due-diligence requirements relating to combating money laundering. However, as most fintech license applicants are likely to be smaller institutions, FINMA proposes to introduce some organizational relaxations for such institutions,” the financial supervisor said in a statement on Tuesday.

Its proposal defines small institutions as those with gross revenues under 1.5 million Swiss francs ($1.5 million).

Under its terms small institutions, unlike banks, will not for instance have to establish an independent anti-money laundering unit with monitoring duties, it said.

The move comes after Switzerland’s parliament voted in June to amend the Swiss Banking Act, creating a new fintech license category to ease rules imposed on financial endeavors that take in funds and provide certain bank-like functions, but do not make money by investing or receiving interest on the funds.

Switzerland, the world’s largest center for offshore wealth, has gained prominence in recent years as a hub for financial technology providers, such as banking software groups Temenos (TEMN.S) and Avaloq AVLN.S, as well as cryptocurrency projects.

But advocates have warned that as banks face increasing margin pressure and tougher competition from technological rivals, more must be done to promote innovation if Switzerland is to remain a leading financial hub.

The new license, intended to promote financial innovation, will apply to groups which accept public deposits of up to 100 million francs but don’t invest the funds or pay interest.

It will likely have the biggest immediate impact on activities such as crowdfunding, which under current rules could often require a banking license.

Cryptocurrency projects — which often fall under anti-money laundering or securities regulations under FINMA’s current guidelines but generally don’t require a banking license — are unlikely to be affected by the changes.

The federal government plans the amendments to take effect from Jan. 1, and FINMA said its own adjustments to the Anti-Money Laundering Ordinance should enter into force simultaneously, if possible.

FINMA opened a review period for its proposal on Tuesday to run through October 26.

($1 = 0.9957 Swiss francs)

Arizona Bitcoin Trader Handed 41-Month Jail Time for Money Laundering Read more: https://cryptovest.com/news/arizona-bitcoin-trader-handed-41-month-jail-time-for-money-laundering/

By Maryam Manzoor

A Bitcoin (BTC) trader from the US state of Arizona has been sentenced to 41 months in federal prison after he was found guilty of money laundering, the Department of Justice said in a statement on Wednesday.

Thomas Mario Costanzo, 54, known online as Morpheus Titania, will get credit for the time he has already served since his arrest in April 2017.

At the end of March, Costanzo was was found guilty of five counts of money laundering by a federal jury in Phoenix. Federal agents launched an investigation into the suspect in 2014, after Costanzo posted on an exchange website, claiming he was prepared to engage in cash transactions of up to $50,000.

When approached by undercover federal agents posing as drug dealers, Costanzo “provided them with Bitcoin and told them it was a great way to limit their exposure to law enforcement”.

“The jury found that over a two-year period, Costanzo took $164,700 in cash from the agents (whom he believed to be heroin and cocaine traffickers) and exchanged it for Bitcoin in order to conceal and disguise the nature, location, source, ownership, and control of the drug proceeds,” the statement reads.

Last year, federal agents conducted a raid on Costanzo’s home, on suspicion of unlawful possession of ammunition and money laundering via cryptocurrencies, which resulted in his arrest. The jury also found him guilty of using Bitcoin to buy drugs, and aiding other individuals in similar purchases by providing the with Bitcoins.

At its March conviction, the Justice Department acknowledged that Bitcoin may be used for legitimate purposes, as anyone can get BTC from a commercial exchange, paying about 1.5% as a commission. For comparison, Costanzo charged some 7% to 10% in his peer-to-peer transactions.

In addition, the court ruled that the 80 BTC (now worth more than $600,000), provided by Costanzo to the undercover agent as part of the final $107,000 money laundering deal are to be forfeited.

Digital currencies’ potential for usage in illicit activities such as fraud and money laundering is among the most frequently cited concerns by cryptocurrency detractors. Bitcoin has been dismissed by countless critics as a vehicle for crime. A study conducted earlier this year revealed that cybercriminals specifically target cryptocurrencies, as the anonymity they provide makes them ideal for laundering criminal proceeds.

Recent reports of crypto crime include Japanese organized crime groups and California’s “Bitcoin Maven” who was recently sentenced to one year in jail for laundering Bitcoins worth millions of dollars.

 

LONDON POLICE PROACTIVE AGAINST ALLEGED CRYPTOCURRENCY MONEY LAUNDERING

By Austin Kennedy

After a warning from European law enforcement agency Europol earlier this year that billions of pounds are being laundered through cryptocurrencies, City of London officials have decided to take matters into their own hands.

Transactions made in Bitcoin and other cryptocurrencies are notoriously complicated to trace due to the fact that users can generally generate unlimited numbers of wallets without providing any identifying information. Nevertheless, law enforcement agencies seem to have no trouble tracking down cybercriminals dealing in cryptocurrencies — as evidenced by the recent indictment of Russian intelligence officers who used Bitcoin to fund their interference with the 2016 U.S. presidential election.

Earlier this year, Europol officials arrested 11 individuals and identified 137 others allegedly involved in a large-scale network for laundering drug money with cryptocurrencies as a part of its Tulipan Blanca operation. The agency warned that there is currently three to four billion pounds ($4.1 to $5.5 billion) worth of digital currencies being laundered in Europe alone, though little evidence was provided to back this claim.

In contrast, the Hong Kong Financial Services and Treasury (FSTB) admitted in its “Money Laundering and Terrorist Financing Risk Assessment” report that it sees no evidence of Bitcoin or other cryptocurrencies being used to launder money or fund terror organizations whatsoever.

Still, accusations of crime in the cryptocurrency world persist.

The Deputy Governor of the Bank of England, Sam Woods — who is candidly wary of cryptocurrencies — wrote letters to the executives of financial institutions claiming (without evidence) that digital currencies “appear vulnerable to fraud and manipulation, as well as money-laundering and terrorist financing risks.”

LONDON POLICE GETTING PROACTIVE

To stay ahead of the future generation of cybercriminals, the City of London Police Department is implementing a new cryptocurrency fraud course at their Economic Crime Academy beginning this fall, according to The Telegraph. A City of London Police spokesperson commented:

On successful completion of this course, participants will understand how to detect, seize and investigate the use of cryptocurrencies in an investigative context… It will be the first of its kind and has been developed in response to feedback from police officers nationally who felt there wasn’t enough training available in this area.

While Bitcoin cannot be blamed for financial transgressions any more than SMS can be blamed for infidelity, a select bunch of computer literate criminals has taken a liking to the new technology and it is to the advantage of law enforcement agencies and financial authorities around the world to keep their staff educated on the latest blockchain trends — whether they are being used to clean dirty money or not.

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