Cybercrime Gang Used BTC To Launder $1.24B

Cybercriminals from Russia and Ukraine attacked more than 100 financial institutions
27 March 2018   1460

The Spanish police forces arrested a gang of russians and ukrainians nationals who are suspected in stealing more than $1.24 billion from financial institutions worldwide and converting them into Bitcoin (BTC). This is reported by Cointelegraph.

According to the Spanish police and Europol, the leader of the gang from Ukraine “Denis K.” and his three partners accomplices of Russian and Ukrainian origin, have been identified and arrested in the Alicante city. In 5 years criminals were able to still round EUR 1 000 000 000 ($1.24 bln) from financial institutions across the globe.

Criminal targeted more than 100 financial institutions; they alleged were able to get away every time with aroun 10 000 000 EUR. As alleged by police, almost all banks from Russian are the victims of the gang; about 50 of them did lose money in the attacks.

Gang used phishing emails with malicious attachments to bank officials to gain access to internal banking networks. Malware provided criminals with control over infected hardware, allowing them to compromise ATMs and use the machines to withdraw unlimited sums of money

Criminals didn’t spend the stolen cash but instead exchanged it into bitcoins. Once converted, the cryptocurrency was used for purchasing different assets, including real estate and vehicles in Spain.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   144

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.