US Courts Are Coming After Crypto Exchanges That Skirt Sanctions | WIRED

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CRYPTOCURRENCIES HAVE LONG been seen as the Wild West of money transfers, but few online payment and money transfer platforms have been as blatant in appealing for illicit cash as one highlighted but not named in a memorandum opinion unsealed on May 13 in the US District Court in Washington, DC. The platform is apparently based in a "comprehensively sanctioned country"--likely North Korea, according to those within the crypto law space--and advertised its services as evading US financial sanctions. It was built using a US front company that facilitated the purchase of domain names, according to court records.

The platform, which was designed to sidestep financial bans aimed at crippling pariah countries, handled more than $10 million worth of bitcoin that was transferred between the United States and the sanctioned country using a US-based crypto exchange, which, the opinion implies, was not aware that it was helping users avoid sanctions.

The opinion, written by Magistrate Judge Zia Faruqui, was likely unsealed because someone has been arrested for operating the crypto platform. It all marks a shift in the way US law enforcement--and the law--handles cryptocurrencies.


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This page contains a single entry by Leonard E. Sienko, Jr. published on May 16, 2022 7:17 PM.

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