Listing Website Suspected For $0.5B Laundering in Crypto

At the moment, US DOJ seized Backpage. com and fully stopped its activity
11 April 2018   394

In the US, operators of the Backpage website, which was used to advertise sexual services, were accused of organizing and abetting prostitution, as well as laundering $ 500 million illegally obtained, including using crypto-currencies. In 2015, the site began accepting payments through the crypto-exchange Coinbase and Kraken, as well as payment instruments GoCoin, Paxful and Crypto Capital. This is reported by Cointelegraph.

Backpage Website
Backpage Website

By laundering the illegal gains of an enterprise, Backpage perpetuated the exploitation of victims and continued to finance their business.
 

Guy Cottrell

Chief Inspector, Post

The indictment states that the defendants “converted customer payments into and out of cryptocurrency” in order to hide their crime and evade law enforcement. But beyond the indictment, the crypto trail goes further, involving not only the defendants, but the sex workers who used the online hub as well.

At the moment, law enforcement agencies have stopped the operation of the web resource.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   70

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.