Cryptocurrency Fraud , Finance & Banking , Fraud Management & Cybercrime

Cryptohack Roundup: Regulations, Multichain Update

Also: Hackers Launder Fewer Funds From DeFi Hacks in 1st Half of 2023
Cryptohack Roundup: Regulations, Multichain Update
Image: Shutterstock

Every week, Information Security Media Group rounds up cybersecurity incidents in the world of digital assets. This week, senators introduced a bill to address decentralized finance risk, Nasdaq held back its crypto custody plans, DeFi hackers laundered lesser amounts of stolen funds in the first half of this year than in H1 2022, and an Australian bank blocked payments to high-risk crypto exchanges.

See Also: Delving Deeper: 2023 Fraud Insights Second Edition

Bipartisan Bill Aims to Regulate DeFi

United States senators on Tuesday introduced a bill that looks to address money laundering and sanctions in the decentralized finance space by subjecting them to the same requirements as traditional financial institutions. The Crypto-Asset National Security Enhancement and Enforcement Act would enable the Treasury Department to enforce relevant rules in the decentralized space, mandate crypto ATM operators to verify user identities and make those who control DeFi projects liable for any law-breaking. If the platform is truly decentralized, with no one controlling the project, "anyone who invests more than $25 million in developing the project will be responsible," the bipartisan proposed legislation says.

Nasdaq Halts Crypto Custody Plans

Regulatory concerns appear to have put a monkey wrench in Nasdaq's plans to set up a crypto custody service. The shifting U.S. business and regulatory environment has pushed the exchange operator to halt the launch of its "digital assets custodian business and related efforts to pursue a relevant license," CEO Adena Friedman said in a Wednesday earnings call. The organization had planned to offer safekeeping services for bitcoin and ether holdings of its clients by the end of June.

DeFi Hackers Laundered Less Funds in H1 2023 Than in H1 2022

Hackers laundered $245 million worth of stolen funds in the first half of 2023, PeckShield said in a Thursday tweet. At $100 million, the Harmony hack topped the list of DeFi hacks in which criminals laundered funds, followed by Atomic Wallet at $65 million and Uranium Finance at $12.5 million. The bad actors primarily laundered 31,350 ETH and 39,000 BNB tokens via sanctioned crypto mixer Tornado Cash, but the value of the funds fell 91% and 31.3%, respectively, compared to the same period in 2022, it said.

Australian Bank Blocks Payments to High-Risk Crypto Exchanges

The National Australia Bank said it had blocked $183.8 million worth of payments to "high-risk" cryptocurrency exchanges between March and July. The payments raised scam concerns, the bank said, but it did not disclose how many of the payments had been triggered by crypto. "Introducing payment prompts, taking action on spoofing and stopping the use of links in unexpected text messages are among key measures we've introduced recently," Chris Sheehan, the bank's executive for group investigations and fraud, said.

Other Coverage From Last Week


About the Author

Rashmi Ramesh

Rashmi Ramesh

Assistant Editor, Global News Desk, ISMG

Ramesh has seven years of experience writing and editing stories on finance, enterprise and consumer technology, and diversity and inclusion. She has previously worked at formerly News Corp-owned TechCircle, business daily The Economic Times and The New Indian Express.




Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.com, you agree to our use of cookies.