25 July 2022
BakerHostetler
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The FBI recently released a bulletin warning financial
institutions and investors about a new cryptocurrency fraud scheme.
According to the statement, cybercriminals have been using the
names, logos and identifying information of legitimate investment
firms to create fake mobile apps and websites in an effort to lure
and defraud potential investors. The FBI cautions institutions and
investors alike to be vigilant and verify any application before
downloading it and providing sensitive information.
According to a recent Chainalysis blog post, use by illicit
entities of cryptocurrency mixers – applications that obscure
the flow of funds and complicate the tracing of cryptocurrency
transactions – is at an all-time high. While mixers operating
in the U.S. are required to register with FinCEN as money
transmitters, few do, according to Chainalysis, and their lack of
KYC processes makes them attractive to criminals looking to launder
money.
While use of mixers may be up, use of darknet exchanges and
ransomware sites may be down. According to reports, the recent
decline in the value of BTC and other cryptocurrencies has led to a
run on fiat reserves, which has caused some illicit exchange sites
to shutter and others to scale back activities.
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