TRM Labs

The Bitfinex investigation resulted in the largest seizure in US history — worth over USD 10 billion. ?? Learn the ins and outs of the “Bitcoin Bank Heist”?in the Smithsonian Institution’s Sidedoor podcast — featuring Zia Faruqui (United States Magistrate Judge at the District Court for the District of Columbia); Ari Redbord (Global Head of Policy at TRM Labs); and Chris Janczewski (Head of Global Investigations at TRM Labs), who led the investigation during his time at IRS Criminal Investigations (IRS-CI). Stream the episode now ???https://lnkd.in/efmm_8C4

?????Last week, the TRM team visited Stratford-Upon-Avon for the annual SOCEX (Serious and Organized Crime Exchange) Economic Crime Conference. Phil Ariss and Michael McCormack spent three days discussing emerging trends in the world of economic crime — including fraud, money laundering, asset recovery, supporting victims, and how to protect the public from bad actors. From law enforcement practitioners to policy makers to financial investigation and fraud teams — it was an incredible opportunity to reconnect with familiar faces, meet new experts, and talk all things #blockchainintelligence.

Law enforcement professionals: Join TRM's community of #crypto investigators, ?LEO Labs?, and learn from leading #blockchain experts across our global network of law enforcement agencies. In our next APAC session (November 27), Matt Humphries and Jonno Newman will explore crypto artifacts and seed analysis. We'll introduce a straightforward categorization method that serves as an investigator's checklist. And we’ll demystify seed analysis and explain how crypto addresses are generated. Sign up to join the LEO Labs community ?? https://bit.ly/3CEINs0

We are hiring! Join our mission and build a safer financial system at TRM!

We are hiring! Join our mission and build a safer financial system at TRM!

On November 12, 2024, Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, pleaded guilty to conspiracy to commit money laundering. Li admitted to orchestrating an elaborate international network that laundered over $73.6 million in proceeds from cryptocurrency investment scams targeting victims in the United States and abroad. Li played a central role in a sprawling “pig-butchering” scam, in which scammers groomed victims over time to build trust before stealing their money. Victims were lured through messaging platforms like WhatsApp and Telegram, where fraudsters posed as legitimate cryptocurrency investors. They directed victims to fraudulent trading platforms, including spoofed websites designed to mimic legitimate ones like “CoinZoom.” Victims, believing they were earning significant returns, poured funds into these platforms. Over $35 million in victim funds flowed into one Bahamas-based account opened by a Los Angeles-based co-conspirator with financial support from Li. These funds were then converted into USDT. Li’s cryptocurrency account received $4.5 million in fraud proceeds, which he later funneled to other accounts controlled by the syndicate. Throughout the scheme, Li used encrypted messaging services like Telegram, operating under aliases like “KG71777” and “KK,” to coordinate with co-conspirators, manage funds, direct transactions, and oversee shell company activities. The U.S. Secret Service uncovered extensive evidence tying Li to the scheme. Telegram chats from an iPhone seized from a co-conspirator detailed Li’s involvement, including his role as a leader in directing the syndicate’s financial operations. Through the use of blockchain intelligence, agents identified victim funds flowing into accounts controlled by Li. Additionally, Li’s frequent logins from Cambodia to his Li's account at a global VASP coupled with connections to the spoofed trading platforms, further tied him to the fraud. The USSS, Homeland Security Investigations and law enforcement partners in Cambodia and the Dominican Republic played pivotal roles in dismantling the network. “This investigation demonstrates the power of international cooperation in combatting transnational crime,” said Acting Assistant Director Michael Ball of the USSS, in the press release. The U.S. Department of Justice highlighted the devastating impact of financial fraud on victims, many of whom suffered life-altering losses. U.S. Attorney Martin Estrada warned, “Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process. Investors should remain vigilant against promises of quick riches.” If you or someone you know has fallen victim to a cryptocurrency scam, report it to the FBI’s Internet Crime Complaint Center IC3. gov to aid in ongoing investigations and report to Chainabuse.

What’s a 2019 Macbook Pro doing in the Smithsonian’s?National Numismatic Collection? And where does #cryptocurrency fit into the ledger of the US monetary system? Dr. Ellen Feingold — curator of the National Numismatic Collection at the Smithsonian Institution’s National Museum of American History — wrote an incredible piece on the emergence of cryptocurrencies, how she thinks about curating digital artifacts, and why Chris Janczewski’s laptop is an important part of American history after being used in the IRS Criminal Investigation (IRS-CI) case that led to the largest financial seizure in US history. Read the article here ???https://lnkd.in/edG4vU3n

Welcome back for another ?Weekly Roundup? — and what a week it’s been in the cryptoverse! On deck in this edition from our policy pros Ari Redbord, Angela Ang, and Isabella Chase: ?????Ilya Lichtenstein and Heather “Razzlekhan” Morgan sentenced in Bitfinex case ??? “Crypto Month” in DC federal courthouse ???? Breaking Klad ?????New EU sanctions guidance for PSPs and CASPs ?????ASIC chairman takes aim at "legislative porridge" in Australian regulation ?????The UK aims to boost financial innovation with a Digital Gilt Pilot Loving the Weekly Roundup? Be sure to leave us a like ??, share ??, or comment ??.

Chainabuse —?the leading reporting platform for malicious #crypto activity worldwide — is now the official reporting partner for Operation Shamrock ??, an organization that provides education and resources to help law enforcement more successfully seize illicit funds and disrupt scammers and other cybercriminals. With this partnership, Chainabuse’s reporting platform will have an even broader reach — empowering investigators with streamlined access to consolidated victim reports and data for network analysis. This will ultimately enable law enforcement to triage reports faster, investigate cases more thoroughly, and identify linked reports more efficiently. Get all the details — and read statements from TRM Labs’ Esteban Casta?o and Operation Shamrock’s Erin West —?here ???https://lnkd.in/e_MDWFu9

???Cryptocurrency fraud is on the rise, and one of the most sophisticated and damaging forms of it is?pig butchering. Estimated?to have siphoned off well over USD 4.4 billion last year alone, pig butchering scams combine psychological manipulation with #crypto investment schemes to devastate victims financially. The organized, transnational nature of these scams not only exposes millions of investors to financial loss, but also reveals a dark undercurrent involving human trafficking and forced labor. In our latest blog post, we explore the dark underbelly of #pigbutchering scams: ???What they are ???Their economic and emotional impact ???Their global reach ???International sanctions and enforcement actions ???How public and private agencies can help break the cycle Read the post ??https://hubs.la/Q02YQskv0