General

Mixershave been a key topic in regulatory debates in recent years. Although they have legitimate uses, they’ve also been used by criminals, leading to regulatory actions. Tornado Cash, a platform powered by immutable smart contracts, was sanctioned in 2022, causing controversy over whether code itself can be sanctioned. In 2024, this decision was overturned. This article explains what Tornado Cash is, why it was sanctioned in 2022, and how a court decision in November 2024 ruled that smart contracts don’t fit within current legal frameworks.

The rapid growth of the crypto asset industry has brought transformative opportunities but also unprecedented regulatory scrutiny. Governments and agencies worldwide are intensifying enforcement actions against crypto firms that fail to comply with Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and sanctions regulations. This article highlights major enforcement cases—including actions against Tornado Cash, Blender.io, Binance, and Cryptex—and outlines practical steps for crypto businesses to strengthen their compliance programs. From transaction monitoring to sanctions screening and risk-based strategies, you’ll learn essential measures to navigate the evolving regulatory landscape and mitigate risks effectively.

The UK government has repeatedly expressed its ambition to establish the country as a crypto hub. However, 2024 saw limited progress in regulatory developments, and with ongoing political shifts, the crypto industry has been left speculating about the next steps. Despite the uncertainty, there have been notable remarks that may provide hints about the future regulatory roadmap. While clarity is still lacking, and it remains to be seen how these plans will translate into concrete actions, this article explores the potential changes on the horizon.

On Wednesday, December 4, 2024 at 8 am EST, Merkle Science will host a one-hour webinar called Crypto Regulatory Trends, Sanctions and Emerging Risks.

Merkle Science is proud to welcome Aaron Ratcliff as our Attributions Lead. 

Following a crypto crime, criminals must launder illicit funds to convert them into usable money.

As the cryptocurrency market grows, so does the complexity of its regulation. In the United States, two key regulatory bodies – the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) – have been tasked with overseeing different aspects of the crypto space. While both agencies have distinct roles, their jurisdictions often overlap, creating regulatory ambiguity. This article explores the roles of the CFTC and SEC in the context of cryptocurrency regulation, their differing approaches to oversight, recent developments from 2023 to 2024, and the impact of this regulatory overlap on the crypto industry.

Intro 

While there was a 15% decline from 2022, the world still lost3.3 billion to crypto hacks over 2023. With more institutions getting involved in digital assets, the stakes are even higher for law enforcement in 2024 and beyond.

On Wednesday, November 6, Merkle Science hosted a three-hour webinar, A 3-Hour Crash Course in Mastering Crypto Investigative Strategies.

On October 24, hackers stole $20 million from a wallet owned by the US government. The stolen funds included funds previously seized from the Bitfinex Hack in 2016. The timing was curious as the Department of Justice had just recommended sentences to perpetrators of the Bitfinex Hack, Ilya Lichtenstein and Heather "Razzlekahn" Morgan one week earlier on October 17.