Edward Snowden must give government money from book because ex-intelligence contractor didn’t get approval first, judge says – CNBC

Former intelligence contractor Edward Snowden poses for a photo during an interview in an undisclosed location in December 2013 in Moscow, Russia.

Barton Gellman | Getty Images

Newly released "Permanent Record" by Edward Snowden is displayed on a shelf at Books Inc. on September 17, 2019 in San Francisco, California.

Justin Sullivan | Getty Images

O'Grady's ruling noted that all three agreements Snowden signed required him to protect information and material of which he had knowledge from unauthorized disclosure.

They also required him to submit for review any writings or other presentations he prepared which related to intelligence data or protected information.

Snowden's book, which was published in September in the United States by Macmillan Publishing Group, details CIA and NSA intelligence-gathering activities, including classified programs.

Snowden did not get clearance from either agency for the book. Nor did he get clearance for intelligence-related materials he displayed during talks he gave for various public events, which included at least one slide "marked classified at the Top Secret level," the ruling said.

In his defense of the lawsuit, Snowden argued that the government had breached the secrecy agreements "by indicating it would refuse to review Snowden's materials in good faith and within a reasonable time," O'Grady noted in his ruling.

Snowden also argued that the suit "is based on animus toward his viewpoint," and that the government only selectively enforced secrecy agreements, the judge said. And finally, Snowden maintained that the agreements did not support the government's claim against him.

But in his ruling, O'Grady said "the contracts at issue here" the secrecy agreements "are unambiguous and clear."

And the judge said there is "no genuine dispute" that Snowden breached the agreements.

A spokeswoman for the U.S. Justice Department did not immediately respond to requests for comment by CNBC about O'Grady's ruling.

Brett Max Kaufman, a lawyer on Snowden's legal team, said, "It's farfetched to believe that the government would have reviewed Mr. Snowden's book or anything else he submitted in good faith."

"For that reason, Mr. Snowden preferred to risk his future royalties than to subject his experiences to improper government censorship," said Kaufman, who is an attorney with the American Civil Liberties Union's Center for Democracy.

"We disagree with the court's decision and will review our options, but it's more clear than ever that the unfair and opaque prepublication review system affecting millions of former government employees needs major reforms."

In April, the ACLU and the Knight First Amendment Institute at Columbia University filed a lawsuit on behalf of five former public servants challenging the prepublication review system that affects former intelligence-agency employees such as Snowden and military personnel.

The suit argues that the system violates the Constitution's First and Fifth Amendments.

The case was filed for former employees of the Office of the Director of National Intelligence, a former CIA employee, a former Marine, and an ex-employee of the Naval Criminal Investigative Service.

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Edward Snowden must give government money from book because ex-intelligence contractor didn't get approval first, judge says - CNBC

Teen crook hacked into 75 phones and stole $1M in cryptocurrency: authorities – New York Post

An alleged teen crook stole the identities of 75 people and swiped $1 million in cryptocurrency all from the comfort of his Brooklyn apartment, authorities said.

Yousef Selassie, 19, used a sophisticated SIM-swapping scheme to take over the phones of people in 20 different states between Jan. 20 and May 19, 2019, according to the Manhattan District Attorneys Office.

He allegedly transferred his victims phone numbers to his own iPhones, enabling him to reset their passwords and gain access to their Gmail, cryptocurrency and other accounts. Meanwhile, his victims phones would suddenly go offline.

The stolen $1 million came from just two victims, authorities said. Selassie was arrested Dec. 5 in Corona, California, and extradited to New York.

He was arraigned Wednesday in Manhattan Supreme Court, where he pleaded not guilty to 87 counts of grand larceny, identity theft and other charges. Justice Mark Dwyer ordered him to surrender his passport and check-in weekly with a supervised-release program. The judge did not set bail.

Authorities executed search warrants on Selassies Brooklyn and California residences, where they seized half a dozen iPhones, two Rolex watches, a monogrammed Gucci wallet and numerous pieces of high-end jewelry, according to court papers.

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Teen crook hacked into 75 phones and stole $1M in cryptocurrency: authorities - New York Post

Cryptocurrency treated as property in freezing order – Lexology

The High Court has granted a freezing order over GBP1.5million worth of Bitcoin and Ethereum cryptocurrency against a trading platform and its directors, in only the second known example of the court treating cryptocurrency as property. The question of whether cryptocurrency is property is relevant to determining competing rights parties may have in it: Elena Vorotyntseva v Money-4 Limited t/a Nebeus.Com, Sergey Romanovskiy, Konstantin Zaripov [2018] EWHC 2596 (Ch)

Until recently, Robertson v Persons Unknown was thought to be the first time that the English High Court had engaged with the question of whether cryptocurrency is property for the purposes of making a proprietary order. However, that was preceded by the present case, a decision from September 2018 only published in November 2019. The claimant, Elena Vorotyntseva (EV), had transferred to Money-4 Limited (trading as Nebeus.Com) (Nebeus) a significant amount of Bitcoin and Ethereum cryptocurrency (the Cryptocurrency) to be held on Nebeus trading platform. The Cryptocurrency was valued at the time at around GBP1.5m.

Funds were transferred to Nebeus on the understanding that it would hold and deal with the Cryptocurrency on EVs behalf. When EV became concerned that the Cryptocurrency may have been dissipated, she sought confirmation from Nebeus that it was still in Nebeus possession. In the absence of any such confirmation, EV applied for a freezing order against Nebeus and its two directors (the Respondents).

Risk of dissipation

The Respondents were represented at the hearing, having been given very short notice of the application the night before. Nebeus offered an undertaking to maintain the Cryptocurrency pending further order, but EV wanted confirmation that she still had control of the Cryptocurrency. The Respondents produced two screenshots at the hearing, one in relation to each form of cryptocurrency. The court accepted EVs submission that the Bitcoin screenshot was insufficient to establish that Nebeus still held EVs Bitcoin. The Ethereum screenshot was even more problematic, since it appeared to have been altered to make it look as if EVs name appeared on the screenshot, when in fact it did not.

The Respondents failed to produce evidence to demonstrate that Nebeus still held the Cryptocurrency, and the questionable nature of some of the evidence bore out EVs concern about the risk of dissipation. Satisfied that there was a real risk of dissipation of the Cryptocurrency, Mr Justice Birss granted a freezing order against the Respondents to prohibit their disposal of the relevant quantities of Bitcoin or Ethereum.

Cryptocurrency as property

This decision is notable for the courts willingness to grant a proprietary injunction as part of the freezing order. This prohibited the disposal of the relevant quantities of Bitcoin or Ethereum (rather than their sterling equivalent value). Birss J was satisfied that the court could make a proprietary order in this case, noting only that there was no suggestion that the Cryptocurrency did not belong to EV, nor any suggestion that cryptocurrency cannot be a form or property or that a party amenable to the courts jurisdiction cannot be enjoined from dealing in or otherwise disposing of it.

The decision does not shed light on the basis on which the court held that Bitcoin and/or Ethereum should be treated as property, but Birss Js readiness to do so is noteworthy.

Comment

This decision will provide further reassurance, alongside Robertson, of the English courts willingness to deal with cryptocurrency as property (albeit both are interlocutory decisions). Although the orders and legal tests the court considered in this case and Robertson (where an Asset Preservation Order was granted in respect of stolen Bitcoin) were different, both decisions required the court to proceed on the basis that cryptocurrency could be personal property. In neither case did the court directly address on what legal basis cryptocurrencies could be property.

This direction of travel was also reflected in the Legal statement on cryptoassets and smart contracts recently published by The UK Jurisdiction Taskforce (UKJT) of the LawTech Delivery Panel. The UKJT pronounced that cryptoassets are capable of being property. Being decentralised, intangible and not fitting within a classification as either chose in possession or action should not, in the UKJTs view, disqualify them. The UKJT proposed that they be recognised not as choses in possession or choses in action but as some other intangible assets.

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Cryptocurrency treated as property in freezing order - Lexology

Executive dies, taking investor cryptocurrency with him. Now they want the body exhumed – ZDNet

The former Quadriga CX CEO Gerald Cotten died suddenly this year, taking the keys required to access cryptocurrency funds belonging to investors with him.

Now, these same traders, devoid of millions in investment, have requested that the body of the firm's former CEO be exhumed to confirm his death.

The story of Cotten's passing exploded in February when it emerged the former executive was the only one in possession of the passwords required to access Quadriga CX cold wallets, containing roughly $250 million in cryptocurrency.

Once the owner passed away in India due to reported complications with Crohn's disease, the assets were deemed lost, leading to the Canadian cryptocurrency exchange to file for Companies' Creditors Arrangement Act (CCAA) protection -- and later instigate bankruptcy proceedings.

"We did not enter into this decision lightly," Quadriga CX said. "We have worked extensively to address our liquidity issues, which include locating our very significant cryptocurrency reserves held in cold wallets required to satisfy customer cryptocurrency balances on deposit and sourcing a financial institution to accept the bank drafts being transferred to us. Unfortunately, these efforts have not been successful."

The company was able to continue operating for a number of weeks after the chief executive passed away, but once the news was made public by his widow, Jennifer Robertson, the exchange's operations rapidly unraveled.

Ernst & Young is now overseeing liquidation proceedings.

The cold wallets were only accessible through Cotten's laptop, and while attempts were made to obtain access including hiring external IT specialists and an extensive search for a paper copy of the credentials, none have borne fruit.

Reddit subthreads mentioning the cryptocurrency exchange are alight with conspiracy theories and it appears that some former traders do not believe that the former CEO is dead -- suggesting that instead, Cotten is still alive and is living off the proceeds of an unusual form of exit scam.

Investors are now demanding concrete proof of his passing.

In a letter (.PDF) dated 13 December, representatives of the users that have lost access to their cryptocurrency as appointed by the Supreme Court of Nova Scotia -- where Quadriga CX used to call home -- lawyers from Miller Thomson LLP and Cox & Palmer have asked that the Royal Canadian Mounted Police (RCMP) perform an exhumation of his body.

See also:DoJ arrests Ponzi operators planning to retire 'RAF' through cryptocurrency scam

No autopsy was requested at the time of Cotten's death. Now, a post-mortem examination has been requested to confirm the body belongs to Cotten, who died aged 30, as well as his cause of death.

The representative counsel says the procedures should take place "given the questionable circumstances surrounding Mr. Cotten's death and the significant losses of affected users."

In addition, the letter says there is a need for certainty "around the question of whether Mr. Cotten is in fact deceased."

The legal team hopes the exhumation and autopsy can be completed by early 2020, as noted by The New York Times. The lawyers claim time is of the essence, citing "decomposition concerns."

A lawyer for his widow told the publication Robertson was "heartbroken" to learn of the request.

In June, the Federal Bureau of Investigation (FBI) sent out a request asking former QuadrigaCX users to fill out a questionnaire as part of an investigation into the firm, conducted with the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Attorney's Office for the District of Columbia, and the Department of Justice (DoJ).

TechRepublic:Survey: Customers want integration and strategic support from security vendors

An Ernst & Young report into the financial workings of Quadriga CX has also raised some troubling issues. According to the monitor, the cryptocurrency exchange's operating infrastructure was "significantly flawed," with Mr. Cotten "failing to ensure adequate safeguard procedures were in place to transfer passwords and other critical operating data to other Quadriga representatives should a critical event materialize."In addition, Ernst & Young was unable to find any accounting or basic corporate records separating company and investor funds.

CNET:How we evaluate and review VPNs

Last month, cryptocurrency trading platform Upbit revealed the theft of $48.5 million in Ethereum (ETH) from the organization's hot wallet. Upbit has pledged to cover the stolen funds, and after the suspension of trading for several weeks, normal services have begun to resume.

Have a tip? Get in touch securely via WhatsApp | Signal at +447713 025 499, or over at Keybase: charlie0

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Executive dies, taking investor cryptocurrency with him. Now they want the body exhumed - ZDNet

Cryptocurrencies Are Still the World’s Best Performing Asset Class This Year – CoinDesk

As the year and decade come to an end, cryptocurrencies once again outperform other major asset classes.

Despite trading significantly down from their record highs of late December 2017, large-cap cryptocurrencies had a phenomenal year and remain one of the greatest investment success stories of the decade.

Cementing themselves as the worlds leading asset class for yearly performance, cryptocurrencies have risen well above annualized returns of the U.S. equities, commodities and bond markets for 2019.

Ryan Alfred, President and co-founder of Digital Assets Data said large-cap crypto assets possess significantly higher returns versus traditional markets for this year.

Looking back at the performance of the top ten large-caps (Bitwise 10) in comparison to other major asset classes, we can see their special signature, Alfred said.

Crypto versus traditional assets

As seen in the chart above, research provided by Digital Assets Data shows how this years performance of the top 10 cryptos by market capitalization fared against other major asset classes such as gold, oil and equities.

Of course, 2019 didnt start out that way. Back in February, the top 10 crypto began a fairly dismal run, resting well below all other traditional asset classes when viewing their return on investment figures. However, sentiment began to pick up significantly in March and by mid-year, cryptocurrencies were far out ahead of other the other assets.

That gap has begun to narrow as stocks, bonds and commodities begin to increase their lead. Yet cryptocurrencies remain significantly ahead of all other asset classes as the year comes to a close.

Much of this rally is courtesy of bitcoin (BTC). The world's first cryptocurrency is currently up 100 percent since the year began. Meanwhile, Ether, the worlds second-largest crypto is up 35 percent year-to-date, though XRP is down 25 percent from where it traded on Jan. 1.

The big picture: Cryptos success story

In the year before the decade began, the world was in the throes of a financial crisis. Since then, stocks have rebounded. From its March 2009 market meltdown lows to now, the S&P 500 has gained a respectable 369 percent. Similarly, the Dow Jones Industrial Average has also had a good run, up 326 percent in that same time period.

However, BTC has blasted those figures, rising well above a staggering 12 million percent (yes, you read that correctly) over a one-year-shorter time frame, beginning March 2010. Thats when the price of 1 BTC was around $0.05, data taken from Messari shows.

Cryptos success can likely be attributed to its most defining characteristics: high volatility and liquidity, allowing market participants to quickly and easily trade between digital and fiat currencies.

Lorenzo Pellegrino, CEO of Skrill, a cross-border payments platform utilizing crypto, said digital assets resembled a nascent market. Prices bouncing around in a frantic manner enable the asset class to outperform all others based on irrational sentiment and low barriers to entry.

As it (crypto) matures we should start to see increased stability and the core fundamentals will become more apparent," Pellegrino said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Even 2019s Strongest Cryptocurrency is Unable to Escape the Bear Market – newsBTC

Binance Coin (BNB), the eighth-largest cryptocurrency by market capitalization, opened on Tuesday in a severely negative area as a string of poor fundamentals scared investors away.

BNB plunged by 5.78 percent, or $0.77, to trade at $12.65. The latest downside move came as a part of an extended bearish correction seen across the entire cryptocurrency market. Like BNB, top coins including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP), too suffered intraday losses.

On the whole, the cryptocurrency market had erased approx $16bn off its capitalization from Monday until 1523 UTC today.

The entire cryptocurrency market had plunged by 8 percent from Monday | Source: TradingView.com, CoinMarketCap.com

The rapid decline in the BNB price also came two weeks before the enforcement of the European Unions Anti-Money Laundering Directive (5AMLD).

In retrospective, 5AMLD requires Europe-based cryptocurrency exchanges to register with the local authorities. It also orders them to perform KYC checks on all their users.

Binance, which is based in Malta, do not impose strict KYC on users withdrawing less than 2 BTC. That leaves the exchange with two options: Either it can impose new regulations on its hundreds of thousands of traders, or it can decide to stop offering services to European clients altogether.

Historically, geo-blocking users have not helped BNB, a de-factor reward token at Binance. Back in June, when Binance had announced that it would stop offering trading services to the United States citizens, the price of BNB had taken a toll.

The token though established a year-to-date high of $43.15 but has since erased a large portion of its profits. As of 1523, it was changing hands at a 70 percent lesser price.

The 5AMLD directive has prompted smaller cryptocurrency businesses, including Bottle Pay, which had raised $2mn earlier this year, to shut down. Irrespective of what Binance does, it would lose a huge chunk of traders that want to circumvent KYC checks.

The latest shakedown has brought Binance Coin closer to testing its 78.6 percent Fibonacci level of $12.455 as support. So it appears, it is one of the last levels standing before BNB and a vast breakdown.

BNB price is undergoing a vast bearish correction | Source: TradingView.com, Binance

The prevailing bearish sentiment could see traders eyeing targets below the $12.45 support. Ideally, a break below the said level could have them open short positions towards $8.96, an interim downside target. A further breakdown, meanwhile, could have traders extend their shorts towards $4.086.

Conversely, a pullback from $12.45 could open an attractive interim long opportunity towards the 50-daily MA in orange.

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Even 2019s Strongest Cryptocurrency is Unable to Escape the Bear Market - newsBTC

Cryptocurrency Market Update: Bitcoin and major altcoins `jump off the lows, give bulls a glimpse of hope – FXStreet

Bitcoin and major altcoins have recovered from the recent lows amid technical correction from deeply oversold levels. The total capitalization of all digital assets in circulation settled at $179 billion, while an average daily trading volume spiked to $93 billion.

BTC/USD is changing hands at $6,659, off the intraday low of $6,435. The first digital coin is still down nearly 3% on a day-to-day basis. From the technical point of view, Bitcoin has returned inside the Bollinger Band on 1-hour chart with further recovery limited by $6,700.

ETH/USD regained the ground above $123.00 after collapsing to $166.40 earlier on Wednesday. The second-largest coin is shadowing Bitcoin moves with the initial resistance created by $125.00 (the upper line of 1-hour Bollinger Band). An upward-looking RSI (Relative Strength Index) implies that the short-term recovery may be extended.

XRP/USD hit bottom at $0.1752 before recovering to $0.1823 by press time. The coin has lost over 7% in recent 24 hours amid strong bearish pressure. Despite the recovery, the coin is moving within a steep downside trend.

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Cryptocurrency Market Update: Bitcoin and major altcoins `jump off the lows, give bulls a glimpse of hope - FXStreet

Cryptocurrency Market Update: November lows blast Bitcoin towards $7,500, Ripple and Ethereum sluggish – FXStreet

Bitcoin could not afford to leave investors ungifted before Christmas. Santa had indeed lost his way to the crypto space, allowing Bitcoin to retestthe lows traded in November. However, the recovery experienced remained unique toBitcoin because other cryptoassets including Ethereum and Ripple were largely unchanged.

Meanwhile, the total market capitalization rose significantly from $177 billion posted at the close of the session on Tuesday to $193 billion at the time of writing. The trading volume shot up as well from $77 billion to $106 billion in the same period. Bitcoin market dominance seems to be picking up the pace once again, besides it stands at 68.2%. In other words, altcoins are losing ground against Bitcoin and this could mean that the much-anticipated altcoin season is just but a mirage.

Although Bitcoin is trading 1.48% lowertowards the end of the Asian session on Wednesday, the reaction from lows slightly above $6,500 was remarkable. Bitcoin broke several barriers in a very unexpected move that left most people surprised. The uptrend aimed for $7,500 but formed a high at $7,475 before adjusting to the current $7,169.

Moreover, the price is trading above the moving averages where the 50 SMA and the 100 SMA on the 4-hour chart are in line to provide support. Bitcoin upward correction also made it above the wedge pattern resistance, which further contributed to the momentum. In the meantime, the focus should stay at $8,000 while the bulls work hard to sustain the price above $7,000.

Ethereum and Ripple gave a blind eye to Bitcoins impressive bullish reaction. Instead, the two cryptos are stuck close to their key support areas. For instance, Ethereum is trading 3% lower on the day at $129 while Ripple has shed 2.66% of its value to trade at $0.19098. The bearish trend coupled with the high volatility suggested that the downward momentum has the potential to continue.

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Cryptocurrency Market Update: November lows blast Bitcoin towards $7,500, Ripple and Ethereum sluggish - FXStreet

Cannabis, corruption and cryptocurrency: All the weird stuff in the budget deal – POLITICO

No D.C. marijuana sales: Congress will continue to ban the District of Columbia from taxing and regulating marijuana. Seventy percent of D.C. voters backed a referendum in 2014 legalizing pot, but provisions in spending bills since then have prevented the city from taxing and regulating the drug. The result is a gray market where residents are legally allowed to grow and carry marijuana, but not sell it outright.

Corruption jab at Elaine Chao: While it should be common sense that officials cant use their public office for private gain, lawmakers spelled out just such a prohibition this year. The funding deal explicitly forbids the Department of Transportation from spending money in violation of a U.S. law that bars federal employees from using their position to endorse products or services, or to boost their relatives or friends. The no-brainer ban is seen as a jab at Elaine Chao, who has been accused of conflicts of interest in her role as Transportation secretary, both by doing interviews alongside her shipping magnate father and by taking far more official meetings with the Kentuckians her husband represents in Congress.

Cracking down on cryptocurrency: Lawmakers want to know how Venezuelan leaders might be using digital currency to bypass U.S. sanctions. So they are calling on the Trump administrations currency leaders to come up with a way to figure out how Nicols Maduros regime could be leveraging digital assets to sidestep the U.S. rules.

Special Olympics spared from cuts: The Trump administration tried to kill the popular program in its budget. Education Secretary Betsy DeVos defended the cut before Congress. But after the administration faced backlash on social media and from lawmakers, President Donald Trump said he had overridden his people to restore funding for the games. Now, Special Olympics funding will rise to $20.1 million, a more than 14 percent boost.

No love for the Tesla crowd: Power companies wanted Congress to expand a $7,500 tax credit for buying an electric vehicle. But no such tweak was included, meaning people looking to buy electric rigs made by GM or Tesla cant get the tax credit because both companies have manufactured more than the cap of 200,000 electric vehicles.

Wary about that westward move: Lawmakers want more details on the Trump administrations plan to move the Bureau of Land Managements headquarters beyond the Beltway. So the spending package demands the Interior Department brief appropriators every month on the controversial plan to relocate the agency to Colorado.

Tribute time: The bill would put House Appropriations Chairwoman Nita Loweys (D-N.Y.) name on the federal program that supports learning centers geared toward helping kids during summer vacation, before school and after hours. Besides receiving a 4 percent funding boost, to $28 million, the program will now be called the "Nita M. Lowey 21st Century Community Learning Centers.

Hands off the Amtrak cops: Extra language was included that blocks Amtrak from shrinking its police force, after the federally subsidized rail operator said it planned to cut up to 20 percent of its cops who patrol aboard trains and at stations.

Jennifer Scholtes, Eric Wolff, Nicole Gaudiano, Natalie Fertig, Stephanie Beasley, Tanya Snyder, Ben Lefebvre, Victoria Guida and Kellie Mejdrich contributed to this report.

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Cannabis, corruption and cryptocurrency: All the weird stuff in the budget deal - POLITICO

Top banks process billions of dollars of cryptocurrency without knowing – Yahoo Finance

According to a new report by cryptocurrency intelligence firm CipherTrace, every top-10 retail bank in the US has unknowingly processed cryptocurrency transactions.

Banks are infamously wary of working with cryptocurrency companies, so its somewhat ironic that most of them are unwittingly processing billions of dollars worth of cryptocurrency payments.

The analysis revealed that the average large bank is currently processing as much as $2bn a year in undetected cryptocurrency-related transfers. This poses a clear threat to their AML and CTF compliance obligations.

You may be wondering how a large financial institution could process crypto payments without realising. Well, according to the CipherTrace Crypto Risk Intelligence Report for banks and financial institutions, many banks are dealing with unregistered cryptocurrency money service businesses (MSBs).

All of the top-10 retail banks in the US have received transactions from MSBs from their payment networks, which include cryptocurrency exchanges. These MSBs have thus far flown under the radar.

The data is particularly relevant since it highlights the fact that banks are ill-equipped to identify cryptocurrency exchanges and other virtual asset service providers (VASPs) as MSBs.

This causes a problem since the upcoming Financial Action Task Force (FATF) regulations and the existing US Bank Secrecy Act (BSA) Travel Rules require banks and financial institutions to clearly identify the MSBs they facilitate.

Financial institutions are exposed to cryptocurrency-related risks because they have no way to detect underlying threats, commented Dave Jevans, CEO of CipherTrace.

Its no secret that banks must undergo hefty AML and CTF compliance burdens. In fact, the lack of robust KYC/AML procedures is the main reason that the majority of banks refuse to work with cryptocurrency exchanges.

In order to meet their obligations, banks have many advanced tools in place to mitigate risks when it comes to conventional payments.

However, as the CipherTrace report reveals, they are not completely covered when it comes to virtual currencies using traditional payment rails like SWIFT and ACH networks.

Story continues

According to a press release, CipherTrace held a conference early last month regarding the Travel Rule and how well prepared banks were to comply with both BSA and the upcoming FATF regulation.

Representative of the US Treasurys Financial Action Task Force (FinCEN) Carole House reflected:

It would be interesting to know how many financial institutions operating in this space are able to identify a [crypto-business] recipient as a financial institution on the basis of its wallet reference number, or the other information that it currently has available to it.

As it turns out, not very well.

As well as helping banks to identify unregistered MSBs and reveal unknown risks from VASPs using bank payment systems, CipherTrace can also help identify dark web threats and achieve compliance.

Jevans said: CipherTrace has been working with the most advanced banking security teams throughout the year so they can mitigate their risks. CipherTrace Crypto Risk Intelligence now brings this capability to all banks and financial institutions.

The clock is ticking for major banks looking to avoid the hefty penalties of slacking on their compliance duties. FATF recommendations come into effect from June 2020.

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