The government’s core allegations against SBF center around his alleged exploitation of funds, which were then funneled for varied purposes such as supporting FTX.com and Alameda Research's operations, making speculative investments, illegal campaign contributions, and personal enrichment.

A recent Motion in Limine filed by the government in advance of SBF’s upcoming trial, confirms that three of the defendant's co-conspirators: Gary Wang, Nishad Singh, and Caroline Ellison, are expected to testify against him. Wang was a co-founder and the Chief Technology Officer of FTX.com, Singh was the Head of Engineering at FTX, and Ellison, who was initially an employee, eventually became the CEO of Alameda. See Caroline Ellison’s list of ‘Things Sam Is Freaking Out About’ could be used in trial

The U.S. Department of the Treasury's Financial Crimes Enforcement Network, more commonly known as FinCEN, has laid out specific guidelines regarding currency transaction reports (CTRs). These guidelines are designed to safeguard the financial industry from potential threats posed by money laundering and other financial crimes. This blog post will help clarify these guidelines and what they mean for you as a customer.

 

What is a Currency Transaction Report (CTR)?

The U.S. Department of Justice (DOJ) recently unsealed an indictment charging Shakeeb Ahmed, a senior security engineer at an international technology firm, with wire fraud and money laundering. The charges stem from an attack on a decentralized cryptocurrency exchange (hereafter referred to as the "Crypto Exchange") that resulted in approximately $9 million in stolen cryptocurrency. Crypto Criminal Defense Blog 

According to a Justice Department press release, the U.S. Attorney's Office for the Southern District of New York just unsealed a four-count indictment against Soufiane Oulahyane. He's been charged for an alleged scheme to spoof the OpenSea marketplace, a leading platform for trading non-fungible tokens (NFTs), to steal cryptocurrency and NFTs. This incident, which occurred in September 2021, saw the defendant allegedly make off with about $450,000 worth of digital assets from a Manhattan-based victim. Currently, Oulahyane is in custody in Morocco facing foreign charges. Crypto Criminal Defense Blog

The Case Background: Spoofing, as defined by U.S. Attorney Damian Williams, is a classic cybercrime technique adapted to new-age digital assets like cryptocurrencies and NFTs. Spoofing involves impersonating a legitimate entity to trick unsuspecting victims, often redirecting them to a falsified website designed to capture their login credentials. In this case, Oulahyane allegedly spoofed the login page of the OpenSea marketplace. Utilizing paid advertisements on a popular search engine, the accused ensured his fake OpenSea website appeared at the top of search results. This duplicitous site, crafted to mimic the real OpenSea platform, was used to harvest the private login details of users. The unsuspecting victims' credentials were automatically forwarded to an email account under Oulahyane's control. 

The Bank Secrecy Act (BSA), officially known as the Currency and Foreign Transactions Reporting Act, was enacted by the United States Congress in 1970 as the first significant legislation to combat money laundering. The Act was designed to deter criminal activity by requiring financial institutions to maintain records of cash purchases and report certain transactions. Crypto Criminal Defense Blog 

In 2013, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, declared that "administrators or exchangers" of virtual currency qualify as money services businesses (MSBs) under the BSA and FinCEN regulations. According to FinCEN's guidance document, an "exchanger" is defined as a person or entity engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. An "administrator" is a person or entity engaged as a business in issuing a virtual currency and who has the authority to redeem such currency. Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies

The BSA requires all MSBs, including those that exchange or transmit virtual currencies, to register with FinCEN. This requirement extends to any "person or entity engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency." This means that cryptocurrency intermediaries, such as exchanges and wallet providers, are subject to the same regulatory requirements as traditional financial institutions. 

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