The cryptocurrency landscape has seen a surge in security breaches recently. The first half of 2024 witnessed an escalation in thefts, with losses totaling $1.49 billion—a staggering 120% increase compared to the previous year. Hot wallet attacks and private key leaks were among the primary contributors to these losses.
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, plays a crucial role in combating financial crimes, safeguarding the financial system, and ensuring compliance with anti-money laundering (AML) regulations. In 2024, FinCEN continues to adapt and evolve in response to emerging financial threats, technological advancements, and regulatory challenges. This article provides an up-to-date overview of FinCEN’s activities, initiatives, and key areas of focus, offering insights into its current operations and future directions. Readers will gain an understanding of the latest developments at FinCEN, its strategic priorities, and the impact of these changes on the financial industry and regulatory landscape.
The cryptocurrency ecosystem, while promising financial innovation, has inadvertently become a fertile ground for criminal activities. The decentralized nature, coupled with the pseudonymous nature of transactions, has presented unique challenges for law enforcement and security professionals.
In this exclusive interview, we speak with Debra Brookes, a distinguished former Deputy Virtual Currency Chief at the New York State Department of Financial Services (NYDFS) and now an advisor at Merkle Science. With a twenty-year career in cryptocurrency regulation, financial fraud prevention, and white-collar criminal enforcement, Debra has been instrumental in overseeing over 30 cryptocurrency-licensed entities and securing significant compliance achievements. Her expertise in navigating the complex regulatory landscape makes her a vital asset to Merkle Science's mission to enhance safety and integrity in the crypto industry.
In this exclusive interview, we sit down with Charles Rettig, former IRS Commissioner and current advisor at Merkle Science, to discuss his unique perspective on regulatory and compliance matters within the cryptocurrency industry. With a distinguished background in tax and financial investigations, Rettig shares insights on enhancing security, anticipating future trends in crypto regulation, and how Merkle Science can support global compliance efforts. Rettig's expertise highlights the importance of public awareness, evolving regulations, and technological advancements in creating a safer and more compliant cryptocurrency ecosystem.
To briefly answer the titular question, while crypto has been used for sanctions evasion, it is increasingly challenging due to the inherent transparency of blockchain technology. Blockchain's digital trail allows for the detection and tracing of illicit activities, making it a less attractive option for those seeking to evade sanctions.
On June 20, 2024, Merkle Science hosted a three-hour crash course in Crypto Compliance. The full video can be watched on-demand here.
In the ever-evolving world of blockchain and crypto assets, one of the latest hot topics is crypto "mixers” (or “tumblers”). Mixers have been the subject of intense debate: Are they heroes of privacy or villains enabling financial crime? Are mixers merely open-source, decentralized code, or are they tools for criminals and bad actors to launder illicit funds? The truth likely lies somewhere in between.
The rise of decentralized finance (DeFi) has revolutionized how we interact with cryptocurrencies. However, alongside innovation comes the challenge of mitigating illicit activity. Coin swapping, a core function within DeFi, has emerged as a tool for money laundering, raising concerns about the potential misuse of these platforms. In this blog we’ll review how coin swapping on decentralized exchanges (or DEXs) works and why criminals exploit them to launder stolen funds. We'll also explore real-world examples of hacks where coin swapping played a major role in laundering stolen crypto across blockchains.
