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Telegram is a hotspot for crypto fraud and laundering

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A recent United Nations report showed that criminal networks in Southeast Asia are increasingly using the messaging app Telegram to facilitate illicit activities, ranging from trading hacked data to laundering money through unlicensed cryptocurrency exchanges. 

The UN Office for Drugs and Crime found that organized crime syndicates are exploiting Telegram’s loose moderation and encrypted messaging features to carry out large-scale illegal operations. The UN’s findings, as reported by Reuters, highlight the vast scale of cybercrime and money laundering on the platform. 

Criminals use the app to trade sensitive information, including credit card details and passwords, while purchasing tools like malware to steal funds via the messaging app.

According to the report, unlicensed crypto exchanges advertised on the app offer services that enable money laundering for criminal organizations. 

Telegram’s role Southeast Asian crime

The report focuses on Southeast Asia, where Chinese crime syndicates operate billion-dollar fraud schemes. According to the UNODC, these operations generate between $27.4 billion and $36.5 billion annually.

The report cites one example of a group advertising that it can move $3 million worth of stolen Tether (USDT) per day.

Last week, Vietnamese police dismantled an international crypto fraud network operating from Laos’ Golden Triangle Special Economic Zone, arresting five suspects. The scammers swindled over 17.6 billion VND through fake romantic relationships and fraudulent investments on a platform called “Biconomynft.”

Telegram’s dance with law enforcement

Telegram has close to 1 billion users, but its founder, Pavel Durov, has come under recent scrutiny. In August, Durov was arrested in Paris, charged with allowing the platform to facilitate criminal activities, including the distribution of child sexual images. 

This has sparked debates about messaging platforms’ responsibility to prevent criminal activity while balancing users’ privacy rights.

For those unfamiliar with crypto, platforms like Telegram play a key role in enabling encrypted communication but can also be misused. Criminals can exploit assets to move funds quickly and anonymously, making it difficult for authorities to track the flow of illegal money.

After his arrest, Durov announced updates to the platform’s moderation policies in response to concerns over the misuse of its search functionality. He stated that Telegram may disclose the IP addresses and phone numbers of rule violators to authorities following valid legal requests.



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Crypto cops record $8.2b in financial remedies for investors: SEC

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For all the complaints levied against the crypto-strict U.S. Securities and Exchange Commission (SEC), the agency successfully obtained orders for $8.2 billion in financial remedies for 2024.

This is despite a 26% decrease in total enforcement actions.

The successful prosecution of Terraform Labs helped the agency achieve this milestone. Once a jury verdict found Terraform Labs and founder Do Kwon liable for fraud, defendants agreed to a final judgment ordering them to pay more than $4.5 billion in penalties — the highest amount ever obtained by the SEC following a trial.

It accounted for more than half of the total monetary judgments, according to the details from the press release.

SEC’s 583 enforcement actions

The SEC’s enforcement efforts in 2024 showed significant shifts across multiple categories, with 583 total enforcement actions. This includes 431 stand-alone actions representing a 14% decrease, 93 follow-on administrative proceedings showing a 43% decrease, and 59 delinquent filing actions marking a 51% decline.

Despite the reduced number of cases, the financial impact reached these levels, combining $6.1 billion in disgorgement and prejudgment interest with $2.1 billion in civil penalties.

In the cryptocurrency sector, the SEC pursued several major cases, including charges against Silvergate Capital for misleading BSA/AML compliance disclosures and action against Barnbridge DAO for unregistered securities offerings.

The agency also tackled the HyperFund pyramid scheme involving $1.7 billion and the NovaTech fraud case affecting 200,000 investors. Notable first-time enforcement actions targeted relationship investment scams involving NanoBit and CoinW6 platforms.

The SEC’s Division of Enforcement won all five federal district court cases, including its crypto-related trial against Terraform Labs. This success extended to investor protection measures, with 124 individuals barred from serving as officers and directors of public companies.

SEC Chair Gary Gensler emphasized the Division’s role as a “steadfast cop on the beat,” while Acting Director Sanjay Wadhwa noted increased market participant cooperation and self-reporting. 

The report somewhat justifies Gensler’s role as the top crypto enforcer. The outgoing SEC chair, set to resign on Jan. 20, faced harsh criticism from crypto enthusiasts and retail traders throughout his tenure for his regulatory approach.

And yet, the SEC distributed $345 million to harmed investors and processed a record 45,130 tips, complaints, and referrals, including over 24,000 whistleblower tips, resulting in $255 million in whistleblower awards.

The agency’s success in returning funds to investors has been substantial, with more than $2.7 billion distributed since fiscal year 2021.





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Crypto influencer Kevin Mirshahi found dead in Canadian park

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The body of Kevin Mirshahi, a 25-year-old cryptocurrency influencer who had been missing since June, was found dead.

Mirshahi’s body was discovered in Montreal’s Île-de-la-Visitation Park, as confirmed by the Sûreté du Québec, according to the Montreal Gazette. 

A passerby came across his decomposing body, prompting an investigation that identified him through an autopsy.

The case, which marks Montreal’s 32nd homicide of 2024, has highlighted a concerning pattern of violence within the crypto community, raising questions about the safety of high-profile figures in the sector.

Timeline of Mirshahi’s disappearance and death

Mirshahi’s disappearance occurred on June 21. Early that morning, he and three others were allegedly abducted from a condo building in Old Montreal.

Montreal police were alerted after receiving a 911 call about a disturbance at a residence near de la Commune and St-Hubert Streets, according to The Gazette.

While the three other abductees were quickly located, Mirshahi remained missing, prompting police to escalate the investigation to the SQ.

During the initial investigation, police identified Joanie Lepage, a 32-year-old woman from Les Cèdres, Quebec, as a suspect, per The Gazette.

In August, she was arrested and charged with first-degree murder and involvement in Mirshahi’s abduction. Authorities allege that Lepage played a role in concealing Mirshahi’s death, though investigations are ongoing to determine if other suspects may have been involved.

Mirshahi’s background in crypto 

Mirshahi was a prominent figure in Montreal’s cryptocurrency scene, primarily due to his management of a private investment firm called “Crypto Paradise Island,” per The Gazette.

His activities in the crypto space attracted public and regulatory scrutiny, particularly from Quebec’s investment authority, the Autorité des Marchés Financiers.

The AMF placed restrictions on Mirshahi in 2021, barring him and two associates from acting as investment advisers or conducting securities transactions. Two weeks after his disappearance, this ban was reinforced in July 2024, limiting his online activities and requiring him to cease promoting related content on social media.

This case isn’t the first crypto-related crime that happened in Canada this month. On Nov. 6, Toronto police investigated the kidnapping of WonderFi CEO Dean Skurka, who was abducted in downtown Toronto and released after a $1 million ransom was paid electronically.





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Tether helps Canadian police recover stolen crypto

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Tether recently assisted the Ontario Provincial Police in recovering $10,000 CAD worth of stolen cryptocurrency.

This recovery was achieved through Tether’s collaboration with the OPP’s Cyber Investigations Team, showcasing the company’s commitment to supporting law enforcement in combating cybercrime.

Tether responded to the OPP’s request by freezing the Tether (USDT) involved in the theft, which allowed the digital assets to be returned to their rightful owner.  

Detective Staff Sergeant Addison Hunter of the OPP acknowledged Tether’s voluntary cooperation as essential in recovering the stolen funds, according to Tether’s press release.

Tether has established itself as a partner to law enforcement in tackling cybercrime, claiming it has aided over 195 law enforcement agencies across 48 countries.

Tether also announced on November 8 that it had completed its first funding transaction in a Middle East crude oil investment, expanding the company’s ventures beyond just crypto.

Tether in the hot seat? 

Recently, on the United States legal front, Tether denied reports that the company was under investigation for anti-money-laundering and sanctions law violations. 

Manhattan prosecutors were reportedly investigating whether Tether’s cryptocurrency had been involved in illegal activities. The U.S. Treasury Department was also said to be considering sanctions on Tether, which could potentially limit American business dealings with the company.

Ceo Paolo Ardoino rejected these claims on X, asserting there was no indication of an investigation and calling the reports “old noise.”



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