Elliptic Connect: 4 October 2023

IMF proposes crypto-risk assessment matrix

A new International Monetary Fund (IMF) working paper has proposed the implementation of a crypto-risk assessment matrix (C-RAM), which would allow participating countries to better identify risk indicators in the digital asset space.

Additionally, the proposal by authors Burcu Hacibedel and Hector Perez-Saiz – titled “Assessing Macrofinancial Risks from Crypto Assets” – seeks to provide the means by which regulators may respond to and mitigate any identified risks.

Read this week's crypto regulatory affairs update

OFAC mirrors Elliptic research with sanctions targeting the use of crypto in the narcotics trade

On October 3rd, the US Office of Foreign Asset Control (OFAC) issued narcotics-related sanctions designations targeting 12 China-based entities and 13 individuals “involved in the international proliferation of illicit drugs”. Listed alongside the latest designations were 17 crypto addresses holding just under $11 million worth of cryptoassets – bringing the combined total value of cryptoassets held by sanctioned illicit narcotics dealers to $25 million.?

Elliptic is pleased to report that, given our extensive research on the use of crypto throughout the global fentanyl trade, many of the crypto addresses listed in this enforcement action have already been identified and made available for screening on our blockchain analytics solutions since May this year.

Five ways that coin swap services facilitate money laundering and sanctions evasion

Most criminals engaging with cryptoassets of illicit origin will eventually have to cash those assets out – either as fiat currency or into bank accounts.?

Fortunately for criminals, there is one class of virtual asset service that knowingly and willingly provides anonymous crypto exchanges. These “coin swap services” exchange crypto, cash or other electronic funds without the need to sign up for an account first, or provide any identity documents. Despite charging higher commission for the convenience, Elliptic’s internal analysis suggests that the popularity of these services has grown over the previous decade.

The UK has suffered record number of ransomware attacks: here’s how to detect the money flows

Organizations in the United Kingdom reportedly suffered a record number of ransomware attacks last year, according to analysis of a dataset published by the Information Commissioner’s Office (ICO).?

Thankfully, however, crypto crime investigators can fight back. In this blog, we reveal the steps they can take to tackle the growing threat of ransomware.

From the team