By Alicia Maher
The US and Ukraine’s security agencies have succeeded in arresting a crypto criminal syndicate involved in hacking crypto wallets and other money-laundering operations. Cyber fraudsters, primarily residents of Mykolayiv, Ukraine, have developed a darknet system for money laundering.
How The Operations Are Run
They legalize the stolen funds by using fake personalities, accounts, and financial service instruments. The gang also hacks crypto wallets to divert the funds from such wallets by selling malware-enabled flash drives. The gang was arrested through the combined efforts of the state and federal security agencies.
Upon discovering their hideouts, the agents combed their entire abode, where they discovered and seized the malware-enabled flash drives and some funds. All those staying in that house have already been put in jail. While the agency didn’t disclose the exact amount recovered (both in cash and in stolen wallets), many estimate it would be at least US $10m.
Cybercrime And Digital Currency
Ukraine has been battling with wrongful digital currency use in recent times. Last year, CoinIdol news revealed that Ukraine’s unicameral parliament approved that security agencies can seize digital currencies once the holders are proven guilty of money laundering or any other crypto-related cybercrime. Since that time, security agencies have arrested several hackers involved in illicit crypto transactions.
The latest arrest involved a 24-year old Ukrainian who has amassed more than $145m by siphoning funds from more than 90 foreign firms (including those in the US). This year, the country’s security agents also arrested a hacker gang who usually develops and distributes malware for holding ransom data. The agencies estimate that this gang must have amassed more than $500m (including some US firms) through their illicit activities.
That might explain why America’s security agencies joined with Ukraine’s security agents to arrest these culprits. This collaboration might be the key to solving Ukraine’s internet security issues which time magazine once described as very vulnerable. Ukraine has no solid or clear structure for its digital currency sector. Hence, it has become a home for cyber fraudsters.
Squid Scam? Investors Lose $2m
The SQUID game token has been one of the most popular discussions in the crypto community over the last few days. However, the price dropped by 99.99% today in an apparent rugged pull. A rug pull means that the team of developers behind a project/token can access the token’s code backdoor and steal the entire token funds.
The play-to-earn token (created off the famous Squid movie) allowed buyers to earn by winning in-app games. The developers’ white paper stated that the overall winner will receive 90% of the total entry fees, while the team will keep the remaining percentage. However, the game is no longer online with investors’ $2.2m trapped.
All things related to this digital currency have been pulled offline. Even its website and social media accounts are no longer active. The incident confirmed earlier doubts about the cryptocurrency, with many reports saying that the Elon musk endorsement is fake and funds can only be deposited but not withdrawn.