This week, we cover the recent headlines that ZachXBT claims to have evidence that North Koreans are behind an infiltration into crypto projects, China reviews its crypto money laundering stance, and Nigeria pushes for more balanced crypto regulation.
ZachXBT exposes North Korean developer network earning $500K monthly
Blockchain investigator ZachXBT claims to have discovered a network of at least 21 North Korean developers working on over 25 crypto projects, making between $300 to $500k per month.
He claims these developers, using fake identities, have been involved in malicious activities, including the theft of $1.3 million in crypto.
The investigation links the payments to individuals sanctioned by the Office of Foreign Assets Control for activities supporting North Korea’s weapons programs. The developers have been found operating under different identities, some with connections to sanctioned entities.
Find out more on Coin Telegraph.
Nigeria’s crypto traders push for balanced crypto regulation approach
Industry stakeholders in Nigeria are urging the government to adopt a compliance-focused approach to cryptocurrency regulation rather than a punitive one. Obinna Iwuno, former president of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), advocates for a balanced regulatory framework that prioritizes fines and operational restrictions over harsh legal actions, which he argues could damage Nigeria’s global reputation.
The current aggressive stance, including legal conflicts with Binance, has raised concerns about stifling the crypto sector’s growth. Stakeholders suggest emulating India’s approach, which combined penalties with constructive engagement, as a more effective way to regulate the industry.
Find out more at Coin Telegraph.
China’s AML crackdown presents threat for crypto traders
China is closely monitoring the use of virtual assets in money laundering activities, according to the country’s highest court, in a move that legal experts say could increase the risk of prosecution for trading cryptocurrency on the mainland.
This move puts even ordinary investors at risk of inadvertently participating in money laundering. This is the first time that Chinese legislation has specifically targeted cryptocurrencies.
Find out more at Yahoo.
US authorities seize $5M in pig butchering crypto fraud
The United States Attorney for the Eastern District of North Carolina seized nearly $5 million in Tether, a cryptocurrency tied to the US dollar, linked to fraudulent cryptocurrency investment scams known as “pig butchering”.
In these types of scam criminals lured victims into fake romantic relationships, convincing them to invest in bogus cryptocurrency trading platforms.
Victims were shown falsified investment returns to entice further investment. When victims tried to withdraw funds, they were met with excuses, often being asked to pay additional “taxes” or “penalties.” The scammers then moved the stolen funds through multiple cryptocurrency wallets to conceal their origins.
Find out more at US Department of Justice.
Almost 100 arrests in raid on Manila crypto fraud den
Authorities in Manila arrested nearly 100 individuals, including Filipinos and foreigners, during a raid at an alleged online scam hub in Parañaque City. The operation, led by the National Capital Region Police Office (NCRPO), targeted AIA Company, which was suspected of running cryptocurrency investment and love scams.
The raid resulted in the arrest of the company’s manager, owner, and supervisor, along with 64 foreign nationals and 32 Filipinos. The company, posing as a licensed offshore gaming operator, was not registered with the Securities and Exchange Commission. Charges under the Cybercrime Prevention Act and Securities Regulations Code are being prepared against the suspects.
Find out more at Philippines News Agency
