Binance, the largest cryptocurrency exchange in the world, is now facing an existential crisis. Federal prosecutors had issued charges to Binance and founder and CEO Changpeng Zhao for their failure to report 100,000 suspicious transactions involving ransomware attacks, hacks, and even terrorist financing.
On 18th October 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it has imposed sanctions on ten Hamas members, operatives, and financial facilitators, including a Gaza-based money services business (MSB), Buy Cash Money and Money Transfer Company. Additionally, a terrorist-linked Bitcoin address was also sanctioned (19D1iGzDr7FyAdiy3ZZdxMd6ttHj1kj6WW) thathas received a total of $288,380,277 so far.
On October 17, 2023, Binance blocked 100 accounts linked to Hamas, the terrorist group that launched a surprise attack on Israel. This action comes on the heels of blocking 190 accounts also linked to Hamas just one week earlier. These actions rightfully drew concern from the media and public: To what extent are terrorist groups in general and Hamas in particular transacting with cryptocurrency?
When it comes to freezing illicit funds related to crypto-related crime, authorities in the United Kingdom (UK) have their hands tied. To perform this action, the suspects must already be in custody, or already convicted of a crime.
Blockchain forensics utilizes specialized techniques and processes to analyze blockchain data and transactions to support criminal investigations and compliance efforts. This emerging field provides invaluable capabilities for monitoring and tracing cryptocurrency activities.
In 2022, victims of cryptocurrency hacks collectively lost over $3.9 billion. Compared to other crimes, such as vehicle theft, most victims of cryptocurrency schemes will never recover their assets again.
On July 31st, OFAC (The Office of Foreign Asset Control) took decisive action against individuals and entities linked to terrorist organizations Al-Qaeda, ISIS, and ISIS-Khorasan (ISIS-K) in the Maldives. Among those sanctioned is Ali Shafiu, a Maldivian national actively involved in the activities of ISIS-K.
In the ever-evolving landscape of digital transactions and data sharing, blockchain technology has emerged as a game-changer. Its decentralized and transparent nature has revolutionized various industries, offering a secure platform for recording financial transactions, digital assets, and other valuable data. However, as with any technological advancement, blockchain brings its own set of challenges, particularly in the realm of forensic investigations.
