Australian review shows drop in illicit purchases with Bitcoin

The research paper named “Sex, Drugs and bitcoin”, published by Sean Foley, Talis Putnins and Jonathan Karlsen tracked the illegal activity all the way back to 2009
01 December 2017   1151

According to the recent research by Australian experts illegal activities performed with the use of Bitcoin, while dropped, still constitutes the third of all the transaction taking place worldwide. All the data points to the fact that the illegal activities peaked in 2014 and have been decreasing ever since. From the total of 106 million users only 34 to 36 million perform operations which involve the purchases in “darknet” and other nefarious activities. Foley stated, that it wasn't unexpected, because practically all the market had been established by pushing the legal limits, but the real evolution begins only when the regulators step in to clean up the perpetrators and put down the new rules.

This research paper will be a stepping stone to further examination of current digital currency trends, because it involved revolutionary analysis methods. Foley, Putnins and Karlsen had to develop new analytic models to reference recent Bitcoin seizures by authorities to real users. While Bitcoin is prised for its anonymity, the 33-character “name” still can be tied back to the end user because all the relevant information is stored in the blockchain. The next logical step was to create a detection algorithm based on the notable characteristics of nefarious activity taken from the sample of known users, involved in illegal proceedings. All this information is then used to estimate and infer other users, involved in the illegal activity.

The research is designed to help authorities adequately understand the amount of work needed to regulate the alternative currencies as an asset being quickly adopted by the ever-increasing amount of people in the world.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   273

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.