Cryptocurrencies, tokens, NFTs, virtual "assets" frauds

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Woman admits duping trader into thinking over $900k worth of her firm’s cryptocurrency was hers​

Isabella Yer Enci pleaded guilty to two cheating charges in court on Oct 1. ST PHOTO: KELVIN CHNG

Samuel Devaraj

Oct 01, 2024

SINGAPORE – A local tech company which accepts cryptocurrency as payment from its clients would convert the tokens into cash by selling them to a trader.
Isabella Yer Enci, who was then Voltron’s accounts executive tasked with contacting the trader, had asked the latter to exchange more than $900,000 worth of cryptocurrency which she claimed was hers or her parents’. In fact, it belonged to her company.
On Oct 1, the 32-year-old Singaporean pleaded guilty to two cheating charges in court.
Another four charges will be taken into consideration during her sentencing on Oct 14.
Deputy Public Prosecutor Ng Jun Chong said that in 2021, the victim, a Malaysian woman, engaged in cryptocurrency arbitrage trading in her spare time.
She would buy cryptocurrencies from various sources, including Voltron, and sell them for a profit.
When Voltron’s finance manager resigned in September 2021, Yer took over the liaising with the trader.

But on Oct 6, 2021, Yer told one of Voltron’s investors that she had found a better job opportunity and wanted to resign. He told her to discuss the matter with the human resources department.
Four days later, Yer asked the trader if she entertained personal transactions, and when the victim said yes, they agreed on a conversion rate.
Over the next few days, Yer transferred her own cryptocurrency to the trader in exchange for cash.

Said DPP Ng: “The accused knew that it was not appropriate for her to be engaging in personal cryptocurrency conversion transactions with the victim while she was in charge of Voltron’s cryptocurrency conversion transactions with the victim.”
On Oct 18, 2021, Voltron needed to convert 300,000 USDT, the stablecoin issued by Tether Holdings, into cash to pay for certain expenses incurred by its Singapore and Malaysia operations.
She told the trader that the tokens belonged to her and arranged to exchange them for cash.
As required by Voltron, Yer sent to two of her colleagues screenshots of messages with the trader, which included the agreed-upon conversion rate and the specific recipient wallet address.
When the company approved the transaction, Yer transferred 300,000 USDT from Voltron’s crypto wallet to the one belonging to the trader.
The trader handed to Yer about $399,900 in cash at her office later that day.
Said DPP Ng: “When the victim asked the accused how she obtained such a large amount of cryptocurrency, the accused lied that it came from her personal funds as she and/or her parents had bought Bitcoin when it was much lower in value.”

After other similar transactions, Yer resigned from Voltron on Oct 26, 2021.
While closing the accounts for October 2021 some time after Oct 25, 2021, Voltron’s finance department discovered that 300,000 USDT, 265,552 USDT, and 130,538.46 USDT, which were supposed to have been converted to Singapore dollars and used to pay the company’s expenses, were unaccounted for.
On Nov 3, 2021, a Voltron staff member spoke to the trader.
“The victim informed him that the transactions were done by the accused, and that the accused had informed her that the cryptocurrency came from ‘personal fund’ and ‘parent cash-out’,” said DPP Ng.
Suspecting Yer of misappropriating Voltron’s money, the employee told the company’s management.
On Nov 5, 2021, when Yer went to Voltron’s office at Paya Lebar Square to return her work laptop and settle some administrative matters, she was asked about the transactions.
She denied knowing about them initially, but eventually admitted that she took the money, claiming that it was to pay her grandmother’s medical bills.
She signed a letter of undertaking to repay the sums that she had misappropriated within six months and paid back to the company about $201,000 over the next few days. She still owed the company about $723,000.
On Dec 2, 2021, Yer filed a police report alleging that Voltron’s employees locked her up in a meeting room for more than 12 hours and falsely accused her of stealing money. She claimed that she had transferred money to them under duress.
But DPP Ng said no one threatened her when she was in Voltron’s office on Nov 5, 2021, and that its employees knew that she was pregnant at that time.
On Sept 1, 2022, a Voltron director lodged a police report against Yer as she still owed the company money.
For each cheating charge, Yer can be jailed for up to 10 years and fined.

 

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Mastermind behind crypto heist worth billions gets 5-year sentence​

The Bitfinex hack resulted in the theft of 119,754 Bitcoin, worth about US$71 million at the time. PHOTO: PEXELS

Nov 15, 2024

WASHINGTON - The mastermind behind one of the biggest-ever Bitcoin heists was ordered to serve five years in prison for conspiring with his social media rapper wife to launder money he stole by hacking into the Bitfinex exchange and grabbing crypto assets now worth billions of dollars.
Ilya “Dutch” Lichtenstein was sentenced in Washington on Nov 14, after he and his wife, Heather Morgan, pleaded guilty in 2023 in a scheme to hide proceeds from the 2016 hack.
Morgan, known as “Razzlekhan” in her rap videos, will be sentenced Nov 18. The government recommended an 18-month sentence for her.
Lichtenstein, 37, faced as long as 20 years behind bars.
But the government cited his substantial assistance that “has benefited numerous investigations”.
The Bitfinex hack resulted in the theft of 119,754 Bitcoin, worth about US$71 million at the time.
But since then, the token has surged from US$580 in 2016 to more than US$90,000 this week, boosting the value of the assets to billions.

“This is so massive, it is not comparable to other crypto crimes” based on its scale and complexity, US District Judge Colleen Kollar-Kotelly said before sentencing.
Lichtenstein carried out his scheme over several years, which undermines defence claims that his actions were “impulsive”, the judge said.
Lichtenstein, a “highly skilled computer expert”, used several hacking techniques to gain access to the Bitfinex network, and then, in August 2016, fraudulently authorised more than 2,000 transactions to move Bitcoin to a cryptocurrency wallet he controlled, the government said.

He and his wife used sophisticated and meticulous money laundering techniques to hide the stolen proceeds, including setting up accounts under fictitious identities, moving funds in small amounts, and breaking up the trail of transactions by depositing and withdrawing funds from crypto exchanges and darknet markets.
They bought non-fungible tokens, gold and Walmart gift cards, according to the US government.
Lichtenstein “became one of the greatest money launderers that the government has encountered in the cryptocurrency space”, prosecutors wrote in an October sentencing memo.
“If the defendant were to take what he has learnt from this prosecution and incorporate it into a future money laundering scheme, he would be even better-equipped to conceal his activity while monetising his crimes,” they wrote.
Since his plea in 2023, Lichtenstein has assisted the government in other criminal cases, including as a government witness in a money laundering trial involving a mixing service called Bitcoin Fog.

Other hacks​

While Lichtenstein had no official criminal history before his arrest in 2022, the Bitfinex hack was not his first, the government said.
As a juvenile, he experimented with hacking and financial fraud, and around 2015, he illegally transferred a small amount of PayCoin, an alternative form of virtual currency, prosecutors said.
The following year, he stole about US$200,000 from a virtual currency exchange, the government said.
But he also worked in legitimate businesses.
While in college, Lichtenstein ran a digital marketing agency from his dorm, and after graduation, a software company he co-founded grew to 30 employees, the government said.
“His decision to use his skills for criminal ends is thus particularly disappointing, but it gives hope for continued successful rehabilitation,” prosecutors said in the sentencing memo.
Morgan attended her husband’s sentencing, along with Lichtenstein’s family.
Lichtenstein expressed remorse to the judge and pledged that he would use his skills to help with cyber security.
“I can make a real difference in the fight against cybercrime,” he said.
He asked that his wife avoid prison time.
“Heather is only involved in this case because of me,” he said. BLOOMBERG

 

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Razzlekhan, crypto’s most embarrassing rapper, gets 18 months in Bitfinex hack case​

Heather Morgan, 34, was sentenced on Nov 18 in Washington federal court. PHOTO: SCREENGRAB FROM RAZZLEKHAN/YOUTUBE

Nov 19, 2024

WASHINGTON – The woman who dubbed herself the “Crocodile of Wall Street” and “Razzlekhan” in rap videos was ordered to serve 18 months behind bars for helping her hacker husband launder cryptocurrency he stole from the Bitfinex exchange.

Heather Morgan, 34, was sentenced on Nov 18 in Washington federal court.

Last week, her husband, Ilya Lichtenstein, got five years in prison for his role in the scheme, which stemmed from his 2016 hack of the exchange and the theft of Bitcoin currently worth billions of dollars. Both pleaded guilty in 2023.

Morgan was not involved in the hack, and her husband said he recruited her to help hide the loot he had stolen.

They could have faced more prison time, but he agreed to aid the United States in other crypto prosecutions, and she persuaded him to cooperate with the authorities.

The Verge, which called her “crypto’s most embarrassing rapper”, said she made crypto-themed rap videos under the name Razzlekhan. The whole story is expected to be immortalised in a Netflix documentary series and a film called Dutch & Razzlekhan, the tech news website said.

According to prosecutors, Morgan and Lichtenstein engaged in complex money-laundering techniques, including creating accounts under fictitious identities, moving the stolen proceeds in small amounts, and breaking up the trail of transactions by depositing and withdrawing funds from crypto exchanges and darknet markets.

They purchased non-fungible tokens, gold and Walmart gift cards, court records show.

At the time of the hack, the stolen Bitcoin was worth about US$71 million (S$95 million).

Now it is valued in the billions of dollars as the price of Bitcoin has surged from US$580 to more than US$90,000.

The couple laundered 21 per cent of what was stolen in the Bitfinex hack, according to the government. BLOOMBERG

 

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S’porean charged with $306m Bitcoin theft blows $665k a night in clubs, buys over 30 luxury cars​

An Instagram reel (right) shows Malone Lam (left) purportedly having an extravagant party at a nightclub.PHOTOS: BSO, IAINTEVENTRIPPIN_/INSTAGRAM

Mar 10, 2025

SINGAPORE - Singaporean Malone Lam – arrested and charged over one of the biggest crypto heists in the United States – splurged up to US$500,000 (S$665,000) a night at clubs and was seen giving Hermes Birkin bags to models and influencers in his lavish outings.

The US Department of Justice (DOJ) said the 20-year-old and co-accused, American Jeandiel Serrano, 21, were arrested in September 2024 and charged with “conspiracy to steal and launder over US$230 million (S$306 million) in cryptocurrency from a victim in Washington, DC”. At today’s prices, the 4,100 stolen Bitcoin are worth more than US$450 million.

In his latest court hearing last week, Lam appeared in a green prison jumpsuit in a Washington court where his trial date was set for Oct 6.

In the short time between the theft and their arrest, Lam and Serrano wasted no time in living it up on their alleged ill-gotten loot.

Management at Los Angeles nightclubs told US investigators that Lam “was spending approximately US$400,000-US$500,000 per night” at their premises. One receipt from an LA club showed that Lam supposedly spent US$569,528.39 in one night. The bill included US$38,500 for 55 bottles of Grey Goose vodka, US$72,000 for 48 bottles of Ace of Spade Brut champagne and US$300 for five buckets of Redbull.

There were also purchases of more than 30 luxury cars – including multi-million-dollar customised Lamborghinis, Ferraris, and Porsches – and top-end watches. At the time of his arrest, Serrano was wearing a US$500,000 watch, indicated US prosecutors. Lam, who used the online handles “Anne Hathaway” and “$$$” also purchased a watch for US$2 million, and a Lamborghini Revuelto for more than US$1 million.

Social media videos that went viral showed Lam in nightclubs, giving Hermes Birkin bags to models and influencers.

Some models and social media influencers have taken to social media to show the free Hermes bags they received.PHOTOS: SOCIAL MEDIA
Lam and Serrano’s conspicuous high-living not only caught the eye of the authorities but also the attention of kidnappers who targeted Lam’s parents. A CNBC report that linked the August 2024 attempted kidnapping to Lam said it involved a couple in a Lamborghini which they said was rented by their son. The kidnapping was botched when the escape van crashed and the attackers fled on foot. All six involved were subsequently arrested.

Lam arrived in the US in October 2023 on a 90-day tourist visa. He overstayed, and subsequently flew by private jet from Los Angeles to Miami, where he was arrested last September and indicted in the US District Court for the Southern District of Florida and the Central District of California.

The indictment said that on Aug 18, 2024, Lam, Serrano and their conspirators contacted a victim in Washington and, through their communications with that victim, fraudulently obtained more than 4,100 Bitcoin. The pair are accused of moving the funds through “various mixers and exchanges using ‘peel chains’, pass-through wallets, and virtual private networks to mask their true identities”.

The receipt from one of Lam’s blowout outings making the rounds on social media.PHOTO: SOCIAL MEDIA
They allegedly spent the laundered cryptocurrency proceeds on international travel, nightclubs, luxury cars, watches, jewellery, designer handbags and rental homes in Los Angeles and Miami, the DOJ said.

Prosecutors said Lam “admitted to purchasing 31 luxury automobiles, 22 of which have yet to be recovered by law enforcement”. “Many of Lam’s vehicles have not been located as yet, such as his Pagani Huayra that he purchased for US$3,800,000,” they added.

As at last October, about US$70 million has been recovered or frozen on various exchanges. “Even considering the millions of dollars that Serrano and his co-conspirators spent on automobiles and jewellery, well over US$100,000,000 remains unaccounted for,” CNBC reported, citing court filings.

Serrano had about US$20 million of the victim’s stolen Bitcoin on his phone, and agreed to transfer those funds back to the Federal Bureau of Investigation.

If found guilty of the theft of the more than 4,100 Bitcoins, Lam faces up to 20 years in prison, a fine of up to US$250,000, or twice the amount of his gains from the scam.

 

[k1976]

S’porean charged with $306m Bitcoin theft blows $665k a night in clubs, buys over 30 luxury cars​

An Instagram reel (right) shows Malone Lam (left) purportedly having an extravagant party at a nightclub.PHOTOS: BSO, IAINTEVENTRIPPIN_/INSTAGRAM

Mar 10, 2025

SINGAPORE - Singaporean Malone Lam – arrested and charged over one of the biggest crypto heists in the United States – splurged up to US$500,000 (S$665,000) a night at clubs and was seen giving Hermes Birkin bags to models and influencers in his lavish outings.

The US Department of Justice (DOJ) said the 20-year-old and co-accused, American Jeandiel Serrano, 21, were arrested in September 2024 and charged with “conspiracy to steal and launder over US$230 million (S$306 million) in cryptocurrency from a victim in Washington, DC”. At today’s prices, the 4,100 stolen Bitcoin are worth more than US$450 million.

In his latest court hearing last week, Lam appeared in a green prison jumpsuit in a Washington court where his trial date was set for Oct 6.

In the short time between the theft and their arrest, Lam and Serrano wasted no time in living it up on their alleged ill-gotten loot.

Management at Los Angeles nightclubs told US investigators that Lam “was spending approximately US$400,000-US$500,000 per night” at their premises. One receipt from an LA club showed that Lam supposedly spent US$569,528.39 in one night. The bill included US$38,500 for 55 bottles of Grey Goose vodka, US$72,000 for 48 bottles of Ace of Spade Brut champagne and US$300 for five buckets of Redbull.

There were also purchases of more than 30 luxury cars – including multi-million-dollar customised Lamborghinis, Ferraris, and Porsches – and top-end watches. At the time of his arrest, Serrano was wearing a US$500,000 watch, indicated US prosecutors. Lam, who used the online handles “Anne Hathaway” and “$$$” also purchased a watch for US$2 million, and a Lamborghini Revuelto for more than US$1 million.

Social media videos that went viral showed Lam in nightclubs, giving Hermes Birkin bags to models and influencers.

Some models and social media influencers have taken to social media to show the free Hermes bags they received.PHOTOS: SOCIAL MEDIA
Lam and Serrano’s conspicuous high-living not only caught the eye of the authorities but also the attention of kidnappers who targeted Lam’s parents. A CNBC report that linked the August 2024 attempted kidnapping to Lam said it involved a couple in a Lamborghini which they said was rented by their son. The kidnapping was botched when the escape van crashed and the attackers fled on foot. All six involved were subsequently arrested.

Lam arrived in the US in October 2023 on a 90-day tourist visa. He overstayed, and subsequently flew by private jet from Los Angeles to Miami, where he was arrested last September and indicted in the US District Court for the Southern District of Florida and the Central District of California.

The indictment said that on Aug 18, 2024, Lam, Serrano and their conspirators contacted a victim in Washington and, through their communications with that victim, fraudulently obtained more than 4,100 Bitcoin. The pair are accused of moving the funds through “various mixers and exchanges using ‘peel chains’, pass-through wallets, and virtual private networks to mask their true identities”.

The receipt from one of Lam’s blowout outings making the rounds on social media.PHOTO: SOCIAL MEDIA
They allegedly spent the laundered cryptocurrency proceeds on international travel, nightclubs, luxury cars, watches, jewellery, designer handbags and rental homes in Los Angeles and Miami, the DOJ said.

Prosecutors said Lam “admitted to purchasing 31 luxury automobiles, 22 of which have yet to be recovered by law enforcement”. “Many of Lam’s vehicles have not been located as yet, such as his Pagani Huayra that he purchased for US$3,800,000,” they added.

As at last October, about US$70 million has been recovered or frozen on various exchanges. “Even considering the millions of dollars that Serrano and his co-conspirators spent on automobiles and jewellery, well over US$100,000,000 remains unaccounted for,” CNBC reported, citing court filings.

Serrano had about US$20 million of the victim’s stolen Bitcoin on his phone, and agreed to transfer those funds back to the Federal Bureau of Investigation.

If found guilty of the theft of the more than 4,100 Bitcoins, Lam faces up to 20 years in prison, a fine of up to US$250,000, or twice the amount of his gains from the scam.

Come out 40….still good future ahead if he manage to hide some $$ away (100mil still unaccounted for)

 

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Jail for ‘key cog’ in cryptocurrency scam in which investors in Singapore lost $1.1m​

Shaffiq Alkhatib
May 06, 2025

SINGAPORE – He was the chief executive of a firm that offered investment schemes, claiming to have 300,000 physical mining machines capable of generating revenue by mining cryptocurrencies.

But this turned out to be a hoax. Lu Huangbin’s firm, A&A Blockchain Technology Innovation, was in fact running a Ponzi scheme.

According to his charges, the company induced 12 investors to part with more than $1.8 million in total. They later suffered losses totalling about $1.1 million.

On May 6, the 61-year-old Chinese national was sentenced to 4½ years’ jail and a fine of $6,000. Lu, who has made no restitution, pleaded guilty to multiple charges, including six counts of cheating.

Nine other charges were considered during his sentencing.

Lu was the last person linked to the case to be dealt with in court. Three others were earlier handed jail sentences.

One of them, Dutch national Yang Bin, then 61, was sentenced to six years’ jail and a fine of $16,000 in August 2024.

At the time of the offences, Yang was the chairman of A&A Blockchain Technology Innovation and was the mastermind of the scam.

Another man, Chinese national Wang Xinghong, then 40, was sentenced to five years’ jail on Aug 6, 2024. He was the firm’s chief technological officer.

A third Chinese national, Chen Wei, then 43, was a director at the company and also Yang’s personal assistant. He was sentenced to four years’ jail and a fine of $6,000 in September 2024.

Deputy Public Prosecutor Wong Shiau Yin told the court on May 6 that Lu was a “key cog” in the scam linked to the firm, which was incorporated on April 20, 2021.

Between May that year and February 2022, it offered a scheme to investors in Singapore.

Known as the A&A Chain Mining Scheme, the company promised investors a fixed daily return of 0.5 per cent on their investments, purportedly generated through the mining of cryptocurrencies.

In its marketing materials – including presentation slides and promotional videos – the company claimed to have an agreement with Yunnan Shun Ai Yun Xun Investment Holdings to acquire 70 per cent ownership of 300,000 mining machines in China.

These machines were said to be able to mine cryptocurrencies such as Bitcoin and Ethereum.

However, the firm did not enter into any such agreement with Yunnan Shun Ai Yun Xun Investment Holdings.

DPP Wong said: “In fact, (A&A Blockchain Technology Innovation) did not mine cryptocurrency to generate revenue. Instead, (it) operated a money circulation or ‘Ponzi’ scheme, using monies from later investors to pay returns owed to earlier investors.”

Lu and his family had invested around US$57,000 (S$73,600) in the scheme and received some US$136,000 in returns.

He did not have a valid work pass in Singapore when he worked as the firm’s chief executive.

The prosecutor also said that between May 2021 and February 2022, the company attracted investments from over 700 investors in Singapore, amounting to around $6.7 million.

Court documents did not disclose if these investors were linked to Lu’s cheating offences.

The documents also did not state how the offences came to light, but all four men were charged in 2023.

 

[k1976]

Trump Meme Coin for u, boss?

 

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Coinbase warns of up to $519 million hack, rocking company that led crypto into mainstream​

Coinbase is the firm that led the digital-asset industry’s march into the mainstream financial system as the first publicly traded crypto exchange. PHOTO: REUTERS

May 16, 2025

San Francisco – On the long list of crypto companies that have been hacked, there are plenty of examples of financial losses that are much more painful than what Coinbase Global appears to be facing from the attack it disclosed on May 15.

Yet this one stands out for significance far beyond the US$400 million (S$519 million) the company expects it will cost: This time, the victim was arguably the most influential US company in the industry.

Coinbase is the firm that led the digital asset industry’s march into the mainstream financial system as the first publicly traded crypto exchange. It is the company that safeguards the lion’s share of the US$122 billion worth of tokens owned by spot-Bitcoin exchange traded funds (ETFs). And it is the firm that did much of the heavy lifting when it came to the industry’s campaign spending spree to send a platoon of pro-crypto lawmakers to Washington in 2025.

Indeed, the revelation of the hack comes just three days after the company’s crowning achievement in mainstreaming crypto with its addition to the S&P 500 Index, a development that will land its shares into trillions of dollars worth of retirement plans and other investment products that track the benchmark gauge.

The hack, plus subsequent news of a lingering Securities and Exchange Commission (SEC) investigation into how the company reported its number of users, sent the shares down more than 7 per cent on May 15.

Less than 1 per cent of the exchange’s monthly transacting users were affected, Coinbase said on May 15. In addition to ramping up security controls for those affected, Coinbase said it would reimburse in full anyone who lost money.

Instead of paying the ransom, the exchange is offering a US$20 million bounty to anyone with information leading to the attackers’ arrest and conviction.

While the company says the Coinbase Prime service that custodies crypto for ETF issuers and services other institutional investors was not affected, the hackers did have near-constant access to some of Coinbase Global’s most valuable customer data since January, according to a person familiar with the incident.

The hackers’ scheme was brazen, if not especially impressive from a technology standpoint: They bribed customer representatives to steal client data and then demanded a US$20 million ransom to delete it. Coinbase began noticing unusual activity from some of these representatives as far back as January.

The bribed reps got access to names, dates of birth, addresses, nationalities, government-issued ID numbers, some banking information as well as details about when customer accounts were created and their balances, the person said. This information could be used to attempt to impersonate Coinbase and convince customers to let the hackers into their account. It could also be used to impersonate the victims with other service providers to attempt to convince them to let hackers into other financial accounts they maintain.

For some traders with big balances on the exchange, the incident was alarming for reasons that go beyond the potential financial losses, considering the kidnapping and mutilation of a crypto start-up co-founder earlier in 2025 and reports of other similar incidents.

“It’s a major breach, the amount of personal information shared is staggering,” said Mr Mike Dudas, managing partner of web3 firm 6MV, who said he was targeted by the Coinbase hackers. “It will make people have to consider their personal physical security, especially with the things happening in France and elsewhere.”

The hackers had bribed enough customer service representatives to achieve effectively on-demand access to Coinbase customer information in the past five months, the person said. Coinbase chief security officer Philip Martin disputed the assertion of near constant access, saying in an interview with Bloomberg News that the company pulled the agents’ access as soon as it was discovered that they were improperly sharing information. Therefore, the hackers “did not have persistent access over the course of the entire period”, he said.

“What these attackers were doing was finding Coinbase employees and contractors based in India who were associated with our business process outsourcing or support operations, that kind of thing, and bribing them in order to obtain customer data,” Mr Martin said.

Coinbase detected the agents, quarantined them and fired them, as soon as the company noticed the activity.

Mr David Jeong, a crypto founder in New York, said he received a text from an unidentified number on April 3, in which he was asked to verify the login for his personal account. He then received another text from a different number on May 4. Mr Jeong said he has not used a one-time password from Coinbase for two years.

In the e-mail, Coinbase recommended that customers ensure they are “regularly monitoring your account, using a strong and unique password”.

Hacks have long plagued the crypto industry, thanks to its heavy reliance on user anonymity and complex digital software. Around US$2.2 billion was lost to such incidents in 2024, according to researcher Chainalysis. Operating under the threat of attack has been particularly painful for crypto exchanges, which are often major targets and face high ongoing costs to maintain tight security.

This type of so-called social engineering attack – in which criminals use people to gain unauthorised access to data, rather than exploiting flaws in computer code – is a type of threat has become increasingly popular in crypto, resulting in recent major incidents like the US$1.5 billion hack of crypto exchange Bybit in February.

“Unfortunately as our nascent industry grows rapidly, it draws the eye of bad actors, who are becoming increasingly sophisticated in the scope of their attacks and harnessing new AI tools and techniques to bypass fraud prevention measures,” said Nick Jones, founder and CEO at crypto technology platform Zumo. “This is understandably a huge blow for a company that has had a pivotal few weeks.”

Meanwhile, The New York Times reported that the SEC has been investigating whether Coinbase misstated its user numbers in past disclosures as part of an inquiry that began during the Biden administration.

“This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public,” Mr Paul Grewal, Coinbase’s chief legal officer, said in a statement. “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” BLOOMBERG

 

[k1976]

BlackRock's US Treasury tokenized fund soars sevenfold in 1 year​

Other major asset managers hop into market for blockchain product

BlackRock's fund alone has soared to a net value of about $2.5 billion in just over a year. © Reuters

TAKANOBU AIMATSU
April 28, 2025 22:22 JST

 

[k1976]

When it comes to hoovering up US government debt, you normally look at nation states — China, Japan, the UK — and major corporations such as Warren Buffett’s Berkshire Hathaway.

They tend to be the entities that park billions in the ultra-low risk bonds issued by Washington.

But now there’s a new entrant in the field that is poised to leapfrog them all — crypto industry’s stablecoin issuers.

In a report released this month, Citigroup estimates that Tether, Circle, and other issuers of dollar-pegged cryptocurrencies may hold $1.2 trillion in US Treasuries in their reserves by 2030.

US Treasury holders US Treasury holdings (Citigroup)

The analysts took note of a raft of developments that are transforming the stablecoin market from a sleepy corner of the crypto field into a world-dominating dynamo.

At the top of the list are mounting hopes that Congress will pass landmark legislation laying out a framework for stablecoins.

If approved — and President Donald Trump, whose family backs a stablecoin itself, is expected to sign a bill into law — long sought regulations governing the asset will be drafted and implemented.

 

[k1976]

Stablecoins are cryptocurrencies that have their value pegged to another asset, ranging from fiat currencies to commodities. Right now, USD-pegged stablecoins dominate over 99% of the stablecoin market.

Stablecoin issuers are also now one of the biggest holders of the U.S. Treasurys

TMUBMUSD10Y
4.405%
, collectively holding over $120 billion in U.S. government debt. They are supposed to hold reserves of U.S. dollars or Treasurys, among other highly liquid assets, to maintain the 1:1 peg of their coins to the greenback.



“Essentially, stablecoin providers are acting like money-market funds supporting U.S. short-term debt markets and driving currently non-USD liquidity holdings into USD,” Jim Reid, head of global macro and thematic research at Deutsche Bank, wrote in a Thursday note.

Notably, Tether


USDTUSD
+0.01%
, the largest stablecoin issuer, held $98.5 billion in U.S. Treasurys as of March 2025, up from nearly $0 in 2020. As of February, Tether was the 21st-largest foreign U.S. Treasury holder, following the United Arab Emirates and Germany.

PHOTO: DEUTSCHE BANK RESEARCH; U.S. TREASURY; TETHER ATTESTATION REPORT
“When you take a step back and consider the current investor focus on dollar weakness, you can see why the U.S. is invested in accelerating near-term legislation to drive stablecoin adoption,” Reid said.

Wall Street participants say the dollar’s status as a reliable “safe haven” was tarnished amid extreme market volatility earlier this year as President Donald Trump aggressively rolled out his tariff agenda — though trade tensions seem to have eased in recent days, as the U.S. and China reached a temporary deal.

 

[k1976]

Trump's stablecoin chosen for $2 billion Abu Dhabi investment in Binance, co-founder says​

By Federico Maccioni
May 2, 20254:32 AM GMT+8Updated 15 days ago

Smartphone with displayed Binance logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Purchase LicensingRights, opens new tab

• Summary
• Companies
• World Liberty Financial unveiled USD1 stablecoin in March
• To be used for $2 bln MGX investment in Binance, WLF co-founder says
• Use highlights World Liberty's growing clout in crypto industry

May 1 (Reuters) - A stablecoin launched by Donald Trump's World Liberty Financial crypto venture is being used by an Abu Dhabi investment firm for its $2 billion investment in crypto exchange Binance, one of World Liberty's co-founders said on Thursday.

It's the latest in a series of Trump family crypto-related ventures, including a "meme coin" launched in January, that have drawn criticism from government ethics experts and political opponents over potential conflicts of interest.

 

[k1976]

Trump-backed crypto bank joins stablecoin wars with new dollar-pegged token​

PUBLISHED TUE, MAR 25 2025 10:33 AM EDTUPDATED FRI, MAR 28 2025 6:04 PM EDT

Tanaya Macheel@TANAYAMACHEEL
MacKenzie Sigalos@KENZIESIGALOS
WATCH LIVE

KEY POINTS

• World Liberty Financial, the decentralized finance venture backed by President Donald Trump and his family, has launched a stablecoin.
• The stablecoin, dubbed USD1, will be pegged to the U.S. dollar and be backed by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents.
• It joins an increasingly crowded market of stablecoins. The market cap for dollar-backed stablecoins has grown more than 46% in the past year, according to CryptoQuant.

The World Liberty Financial website arranged on a smartphone in New York, US, on Wednesday, Feb. 12, 2025.
Gabby Jones | Bloomberg | Getty Images
World Liberty Financial, the decentralized finance venture backed by President Donald Trump and his family, has launched a stablecoin, joining an increasingly crowded market.

The company said Tuesday that the stablecoin, dubbed USD1, will be pegged to the U.S. dollar and be backed by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents. It will soon go live on the Ethereum and Binance Smart Chain networks.

 

[Norty]

Mastermind behind crypto heist worth billions gets 5-year sentence​

The Bitfinex hack resulted in the theft of 119,754 Bitcoin, worth about US$71 million at the time. PHOTO: PEXELS

Nov 15, 2024

WASHINGTON - The mastermind behind one of the biggest-ever Bitcoin heists was ordered to serve five years in prison for conspiring with his social media rapper wife to launder money he stole by hacking into the Bitfinex exchange and grabbing crypto assets now worth billions of dollars.
Ilya “Dutch” Lichtenstein was sentenced in Washington on Nov 14, after he and his wife, Heather Morgan, pleaded guilty in 2023 in a scheme to hide proceeds from the 2016 hack.
Morgan, known as “Razzlekhan” in her rap videos, will be sentenced Nov 18. The government recommended an 18-month sentence for her.
Lichtenstein, 37, faced as long as 20 years behind bars.
But the government cited his substantial assistance that “has benefited numerous investigations”.
The Bitfinex hack resulted in the theft of 119,754 Bitcoin, worth about US$71 million at the time.
But since then, the token has surged from US$580 in 2016 to more than US$90,000 this week, boosting the value of the assets to billions.

“This is so massive, it is not comparable to other crypto crimes” based on its scale and complexity, US District Judge Colleen Kollar-Kotelly said before sentencing.
Lichtenstein carried out his scheme over several years, which undermines defence claims that his actions were “impulsive”, the judge said.
Lichtenstein, a “highly skilled computer expert”, used several hacking techniques to gain access to the Bitfinex network, and then, in August 2016, fraudulently authorised more than 2,000 transactions to move Bitcoin to a cryptocurrency wallet he controlled, the government said.

He and his wife used sophisticated and meticulous money laundering techniques to hide the stolen proceeds, including setting up accounts under fictitious identities, moving funds in small amounts, and breaking up the trail of transactions by depositing and withdrawing funds from crypto exchanges and darknet markets.
They bought non-fungible tokens, gold and Walmart gift cards, according to the US government.
Lichtenstein “became one of the greatest money launderers that the government has encountered in the cryptocurrency space”, prosecutors wrote in an October sentencing memo.
“If the defendant were to take what he has learnt from this prosecution and incorporate it into a future money laundering scheme, he would be even better-equipped to conceal his activity while monetising his crimes,” they wrote.
Since his plea in 2023, Lichtenstein has assisted the government in other criminal cases, including as a government witness in a money laundering trial involving a mixing service called Bitcoin Fog.

Other hacks​

While Lichtenstein had no official criminal history before his arrest in 2022, the Bitfinex hack was not his first, the government said.
As a juvenile, he experimented with hacking and financial fraud, and around 2015, he illegally transferred a small amount of PayCoin, an alternative form of virtual currency, prosecutors said.
The following year, he stole about US$200,000 from a virtual currency exchange, the government said.
But he also worked in legitimate businesses.
While in college, Lichtenstein ran a digital marketing agency from his dorm, and after graduation, a software company he co-founded grew to 30 employees, the government said.
“His decision to use his skills for criminal ends is thus particularly disappointing, but it gives hope for continued successful rehabilitation,” prosecutors said in the sentencing memo.
Morgan attended her husband’s sentencing, along with Lichtenstein’s family.
Lichtenstein expressed remorse to the judge and pledged that he would use his skills to help with cyber security.
“I can make a real difference in the fight against cybercrime,” he said.
He asked that his wife avoid prison time.
“Heather is only involved in this case because of me,” he said. BLOOMBERG

Five years for stealing billions? That’s insane. If someone swiped even a fraction from my coinbase pro account, I’d expect serious consequences. The justice system really doesn’t understand the scale of crypto crimes yet. It’s not just digital money, it’s real value, real lives affected. This sentence sends the wrong message.