General

When Ryan Wedding represented Canada as an Olympic snowboarder in 2002, few could have imagined the trajectory his life would take. Now, over two decades later, Wedding is one of the FBI’s most wanted fugitives, accused of leading a violent drug trafficking network. His organization allegedly transported massive quantities of cocaine from Colombia to North America, facilitated by modern technology—notably cryptocurrency. The case serves as a stark reminder of how criminals are exploiting digital financial systems, creating new challenges for law enforcement worldwide.

Cryptocurrency has transformed the financial landscape, offering unprecedented transparency alongside new avenues for illicit activity. One of the most common tactics used by bad actors to obscure the origins of stolen or illicit funds is a method known as a peel chain. This technique involves repeatedly sending small amounts of cryptocurrency to different wallets, creating a complex web that makes it challenging for investigators to trace.

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.

Hot wallets are cryptocurrency wallets designed to maintain continuous internet connectivity and real-time interaction with the cryptocurrency network. These wallets enable users to execute swift transactions, check token balances instantly, and manage assets conveniently. However, their constant internet connectivity makes them more susceptible to cybersecurity threats compared to cold wallets, which remain offline. 

Pig butchering scams have emerged as a significant cybercrime threat, costing victims billions of dollars worldwide. The transnational criminal organizations that run these frauds seek to exploit the victims' psychology through a prolonged campaign of getting to know the victim. The victim will often feel an emotional connection to the illicit actors, which can be challenging to break. 

The FBI's 2023 Cryptocurrency Fraud Report, released on September 9, 2024, reveals a staggering $5.6 billion lost to crypto-related scams, marking a 45% increase from the previous year. This article explores the key findings of the report, focusing on the most common scams, the demographics most affected, and the increasing sophistication of cybercriminals within the growing blockchain ecosystem. Additionally, we'll examine why Web3's rapid expansion has become a hotspot for scammers and how to protect yourself against these rising threats.

Crypto investigations are intricate and require a multi-layered approach to uncover the truth. While many products offer value in isolated aspects of these investigations, Merkle Science stands out by delivering a comprehensive suite of tools that cover the entire investigative process. Our solutions empower businesses, organizations, and agencies with end-to-end support, allowing them to transform their approach to crypto investigations.

The Office of Foreign Assets Control (OFAC) is a crucial entity within the U.S. Department of the Treasury, responsible for implementing and enforcing economic and trade sanctions based on U.S. foreign policy and national security goals. These sanctions target foreign countries, regimes, terrorists, international narcotics traffickers, and other entities that threaten U.S. interests.

As the cryptocurrency landscape continues to evolve, the Financial Crimes Enforcement Network (FinCEN) is at the forefront of ensuring that this emerging sector adheres to stringent anti-money laundering (AML) and counter-terrorist financing (CTF) standards. In 2024, FinCEN’s role in regulating cryptocurrencies has become increasingly significant, reflecting the growing importance of digital assets in the global financial system. This article explores FinCEN’s expanding role in crypto regulation, the application of existing legal frameworks to digital assets, and the agency’s efforts to combat financial crimes involving cryptocurrencies.

In this exclusive interview, we sit down with Robert Whitaker, a seasoned law enforcement professional who has recently joined Merkle Science as the Director of Law Enforcement Affairs. With over 23 years of experience spanning federal, state, and international law enforcement, Robert brings a wealth of knowledge and a deep understanding of the cryptocurrency landscape. His distinguished career includes key roles at Homeland Security Investigations (HSI), where he led efforts in disrupting criminal networks and combating financial crimes, particularly those involving cryptocurrencies.