Interpol

Brit who consulted North Korea on crypto reportedly detained in Moscow

Earlier, Christopher Emms was released by Saudi authorities due to the lack of evidence against him.

The Moscow bureau of Interpol detained a British national charged by the United States Department of Justice (DoJ). The man is accused of conspiring to violate U.S. sanctions on North Korea.

According to local media, on Feb. 21, Christopher Emms was arrested in Moscow upon the “red notice” from Interpol. Th 31-year-old British citizen was detained in the hostel where he was staying.

In April 2022, alongside Spanish national Alejandro Cao De Benos, Emms allegedly provided instructions to North Korea on how it could use blockchain and cryptocurrency to launder money and evade sanctions. The two planned and organized the 2019 Pyongyang Blockchain and Cryptocurrency Conference.

The third participant in the conspiracy is Virgil Griffith, a former Ethereum developer. He was arrested by the Federal Bureau of Investigation in November 2019, pleaded guilty, and was sentenced to 63 months in prison. Emms could face up to 20 years in prison for one count of conspiring to violate the International Emergency Economic Powers Act.

Radha Stirling, the founder of Due Process International, a nongovernmental organization that helps to defend human rights in the face of international enforcement agencies, previously claimed that there was no strong evidence against Emms:

“Precisely because he did nothing wrong; he provided no information to North Korea that doesn’t already appear on the first page of Google.”

In September 2022, Saudi Arabia rejected the American extradition request for the lack of a legal basis and released Emms after an eight-month travel ban. He immediately left the country and fled to Russia. However, despite the country being targeted by the DoJ’s efforts to enforce the financial sanctions in the crypto sector, the local officials decided to help their American counterparts.

Regulation comes for crypto staking: Law Decoded, Feb. 6–13

Even the SEC Commissioner has publicly rebuked her agency over the shutdown of Kraken’s crypto staking program.

Last week, the United States Securities and Exchange Commission (SEC) reached an agreement with cryptocurrency exchange Kraken. The latter will stop offering crypto staking services to American customers and pay $30 million in disgorgement, prejudgment interest and civil penalties.

While the sum of fines could hardly get an entity like Kraken off balance, the future of staking concerns the crypto market. The court agreement attracted the ire of not only the general crypto community but of investors, politicians and industry executives, with Cinneamhain Ventures partner Adam Cochran calling SEC Chair Gary Gensler “an agent of an anti-crypto agenda” rather than a regulator. The CEO of the Blockchain Association, Kristin Smith, urged Congress to take such important cases under its direct control.

The CEO and co-founder of cryptocurrency exchange Coinbase, Brian Armstrong, believes that banning retail crypto staking in the United States would be a “terrible” move by the country’s regulators. Armstrong also criticized the current lack of regulatory clarity in the U.S. and subsequent “regulation by enforcement” that he says is driving companies offshore, such as FTX.

Even the SEC Commissioner Hester Peirce has publicly rebuked her agency over the shutdown of Kraken’s crypto staking program. The commissioner blasted her agency, arguing that regulation by enforcement “is not an efficient or fair way of regulating” an emerging industry. Peirce implied the regulator was “lazy and paternalistic,” suggesting the SEC should have initiated a “public process to develop a workable registration process that provides valuable information to investors.”

South Korean regulator provides guidance on security tokens

South Korea established guidance that specifies which digital assets will be considered and regulated as securities in the country. The law considers securities as financial investments where investors are not required to make additional payments after their original investment. The Financial Services Commission (FSC) also provided examples of which digital assets will most likely be classified as securities. According to the FSC, this may include tokens that provide a stake in business operations, gives holders rights to dividends or residual assets, or provide profit to the investors.

Dubai releases crypto regulations for virtual asset service providers

The Virtual Asset Regulatory Authority (VARA), the regulator in charge of overseeing cryptocurrency laws within Dubai, has issued new guidelines for virtual asset service providers (VASPs) operating within the emirate. All market participants, whether licensed by VARA or not, must adhere to marketing, advertising and promotions regulations. Violators will be fined between $5,500 (20,000 dirhams) and $55,000 (200,000 dirhams), and repeat offenders could see fines as high as $135,000 (500,000 dirhams). However, the rules only apply to market participants within Dubai, excluding those operating under the Dubai International Financial Centre.

Interpol wants to police metaverse crimes

The International Criminal Police Organization, or Interpol, is investigating how it could police crimes in the metaverse. According to Interpol secretary general Jurgen Stock, as the number of metaverse users grows and the technology further develops, the list of possible crimes will only expand to potentially include crimes against children, data theft, money laundering, financial fraud, counterfeiting, ransomware, phishing, and sexual assault and harassment. The move to police the metaverse comes nearly four months after Interpol launched its own metaverse in October 2022 at the 90th Interpol General Assembly in New Delhi, India.

Bitzlato co-founder released from brief arrest and questioning: Report

The co-founder of cryptocurrency exchange Bitzlato was briefly detained for questioning in Moscow at the request of Interpol, after which he was released.

Local Russian media outlets reported on Monday that Bitzlato co-founder Anton Shkurenko was detained in Moscow on Feb. 6 at the request of Interpol. However, according to a Feb. 10 report from CoinDesk, Shkurenko was stopped and detained by the local police for an identity check and released shortly after.

Shkurenko said he is not involved in any criminal cases in Russia, while not disclosing details of the investigation:

“I hope I convinced the prosecutor of my innocence.”

He did not specify the sector of law enforcement that detained him, though he mentioned he signed a contract to appear when and if requested by investigators. Shkurenko, therefore, received a no-detention warrant to skirt future arrests.

At the time of arrest, Shkurenko attests that he is a “tech consultant” for Bitzlato. However, he reportedly held the keys for the exchange’s crypto wallets, though they have since been handed over to other team members.

Bitzlato still has around 100 active employees despite the recent crackdowns from global authorities. Shkurenko told CoinDesk that a relaunch of the exchange, with a base in Russia, could happen in the near future.

“I could launch the exchange from my apartment.“

According to the co-founder, the team has held onto the majority of its users’ funds. Shkurenko said he could “quickly” resume operations.

This comes on the heels of a series of updates involving Bitzlato’s operational status. On Jan. 18, authorities in the United States took action against the exchange with accusations of money laundering and allegedly bypassing sanctions against Russia.

According to the U.S. Department of Justice, the exchange handled nearly $700 million of illicit funds.

As the investigation against the exchange continues, various prominent companies in the crypto space have been called out for connections with Bitzlato. One is Binance, named by the U.S. Financial Crimes Enforcement Network a major receiver of Bitcoin (BTC) from the exchange.

LocalBitcoins, another cryptocurrency platform, shut down on Feb. 9 and was also linked to Bitzlato as a big sender of BTC.

On Jan 23. Europol reported that it seized $19.5 million in crypto in an enforcement action against Bitzlato. A little over a week later, on Feb. 2, Spanish authorities detained the exchange’s CEO.

Interpol wants to police metaverse crimes, reveals secretary general

According to Stock, criminals have started targeting users on platforms similar to the metaverse, adding that “we need to sufficiently respond to that.”

The International Criminal Police Organization (ICPO), or Interpol, is investigating how it could police crimes in the metaverse . However, a top Interpol executive believes there are issues with defining a metaverse crime.

According to BBC, Interpol Secretary General Jurgen Stock revealed the agency’s intent to oversee criminal activities on the metaverse. Stock highlighted the ability of “sophisticated and professional” criminals to adapt to new technological tools for committing crimes.

The move to police the metaverse comes nearly four months after Interpol launched its own metaverse in October 2022 at the 90th Interpol General Assembly in New Delhi, India.

*The official Interpol office in the metaverse. Source: Interpol*

During the launch, the announcement read:

“As the number of metaverse users grows and the technology further develops, the list of possible crimes will only expand to potentially include crimes against children, data theft, money laundering, financial fraud, counterfeiting, ransomware, phishing, and sexual assault and harassment.”

According to Stock, criminals have started targeting users on platforms similar to the metaverse, adding that “we need to sufficiently respond to that.” However, the organization faces issues with defining a metaverse crime. Madan Oberoi, Interpol’s executive director of technology and innovation, stated:

“There are crimes where I don’t know whether it can still be called a crime or not. If you look at the definitions of these crimes in physical space, and you try to apply it in the metaverse, there is a difficulty.”

Moreover, he revealed that Interpol is also challenged with raising awareness about possible metaverse crimes.

In parallel to launching into the metaverse in October 2022, the organization created a dedicated unit to fight crypto crimes.

#Crypto currencies are emerging as major threat across the globe: Jurgen Stock, Interpol chief

The Interpol global complex for innovation in Singapore is working on a mechanism to deal with challenges emerging from #Cryptocurency

— Sachin Singh (@sachinsingh1010) October 18, 2022

The initiatives followed Interpol’s “red notice” to global law enforcement in September for the arrest of Terraform Labs co-founder Do Kwon.

Put your hands up! Interpol storms into the metaverse

Interpol’s metaverse is up and running and has been designed to streamline communication between various units, along with providing an avenue to conduct education and training.

The International Criminal Police Organization (Interpol) is putting on its virtual reality headsets as it prepares to crack down on an expanding list of “possible crimes” in the metaverse.

According to an Oct. 20 announcement, Interpol has launched the “first ever Metaverse specifically designed for law enforcement worldwide” — introducing it at the 90th Interpol General Assembly in New Delhi — already fully operational.

Interpol outlined that a key driver behind its jump into the metaverse is due to bad actors already leveraging the tech to conduct crimes, while public adoption rates are likely to significantly increase over the next few years.

“Criminals are already starting to exploit the Metaverse. The World Economic Forum […] has warned that social engineering scams, violent extremism and misinformation could be particular challenges,” the announcement reads, adding that:

“As the number of Metaverse users grows and the technology further develops, the list of possible crimes will only expand to potentially include crimes against children, data theft, money laundering, financial fraud, counterfeiting, ransomware, phishing, and sexual assault and harassment.”

Notably, people have already been put behind bars for their actions in the metaverse. Last month, a South Korean man was sentenced to four years in prison for sexually harassing children in the metaverse, and luring them to send lude photos and videos.

At the event in Delhi, Interpol also revealed plans to develop a division dedicated to cracking down on crypto crime. Interpol secretary general Jürgen Stock highlighted the need for the specified unit, as many law enforcement agencies are not currently equipped to deal with the complexities of the sector.

The special director of India’s Central Bureau of Investigations, Praveen Sinha, also noted that it has become increasingly difficult to monitor cybercrime due to its global nature and that coordination is a key factor that will make their efforts easier.

“The only answer is international cooperation, coordination, trust, and real-time sharing of information,” Sinha said.

The new Interpol metaverse will allow registered users to visit the platform and take a tour through a “virtual facsimile of the Interpol General Secretariat headquarters in Lyon, France” and partake in forensic investigation courses, among other things.

Interpol has outlined that its metaverse will hopefully provide a more streamlined and efficient way for its various outfits across the globe to communicate and work with each other. While education and training for students/new recruits was also highlighted.

Earlier this week, the Ajman Police announced it would provide its services to customers through metaverse technology, according to an Oct. 16 tweet from the authority.

Interpol reportedly creates dedicated unit to fight crypto crimes

Law enforcement agencies are “very often” not properly trained or equipped to track crypto crimes, Interpol secretary general Jürgen Stock said.

The International Criminal Police Organization is reportedly planning to strengthen its crackdown on cryptocurrency-related crimes by forming a dedicated division.

Interpol, the world’s largest global police organization, has set up a special team in Singapore to help governments fight crimes involving virtual assets, the Indian news agency Business Standard reported on Oct. 17.

Interpol made the announcement at a press conference ahead of its 90th general assembly in Delhi, which is to be attended by high-profile police officials from its 195 members from Oct. 18 until Oct. 21.

According to Interpol secretary general Jürgen Stock, the absence of a legal framework for cryptocurrencies like Bitcoin (BTC) and Ether (ETH) poses major challenges to law enforcement agencies. “Because very often, agencies are not properly trained and properly equipped” to address cryptocurrency crimes in the beginning, Stock reportedly noted.

Stock also pointed out that cryptocurrency and cybercrime will be the main focus of the agenda at Interpol’s general assembly in India.

#Crypto currencies are emerging as major threat across the globe: Jurgen Stock, Interpol chief

The Interpol global complex for innovation in Singapore is working on a mechanism to deal with challenges emerging from #Cryptocurency

— Sachin Singh (@sachinsingh1010) October 18, 2022

Praveen Sinha, the special director of India’s Central Bureau of Investigations, reiterated that it has been increasingly difficult to monitor cybercrime. He also highlighted Interpol’s role in establishing and developing better police cooperation at the global level.

“The only answer is international cooperation, coordination, trust, and real-time sharing of information,” Sinha said.

The news comes soon after Interpol issued a “red notice” to global law enforcement in September for the arrest of Terraform Labs co-founder Do Kwon. South Korean prosecutors in Seoul previously asked Interpol to circulate the “red notice” for Do Kwon across the agency’s 195 member nations to find him following the collapse of the Terra ecosystem in May 2022.

Interpol’s latest efforts to better track cryptocurrency crimes are not the agency’s first initiative to get more crypto-related skills. Interpol has been working to get more expertise to learn about cryptocurrency transactions and identify criminal activity in the darknet as early as at least 2015.

In 2020, Interpol partnered with the cybersecurity firm Trend Micro to reduce cryptojacking affecting routers across South-East Asia. The agency also worked with the South Korean data intelligence startup, S2W Lab, to analyze dark web activity, including cryptocurrency transactions in March 2020.

Terra co-founder Do Kwon says he’s ‘making zero effort to hide’ following Interpol notice

Do Kwon told his more than one million Twitter followers that he had not seen his name on Interpol’s Red Notice list, but not all names are made available to the public.

Terra co-founder Do Kwon, wanted by South Korean authorities and whose whereabouts are currently unknown, has suggested he’s not changing his routine in response to potential legal action.

In a Monday tweet, Kwon said members of Crypto Twitter had likely seen him walking on the street or around shopping malls — without mentioning the city or country — in “the past couple weeks” despite Interpol reportedly issuing a Red Notice for the Terra co-founder. Kwon told his more than one million followers in a reply that he had not seen his name on Interpol’s list of individuals to “locate and provisionally arrest […] pending extradition, surrender, or similar legal action,” but not all names are made public.

“I’m writing code in my living room,” said Kwon. “I’m making zero effort to hide.”

Active on social media while facing potential arrest and prosecution in South Korea, Kwon showed his location as Singapore on his Twitter account at the time of publication, but a Sept. 17 report from Reuters suggested he may no longer be in the country. The Terra co-founder is a South Korean national. Dual citizenship in South Korea is generally not permitted with certain exceptions, but it’s unclear if Kwon holds more than one country’s passport.

A prominent figure in the crypto for his involvement with Terraforms Labs, Kwon became a person of interest among South Korean authorities when Terra’s algorithmic stablecoin TerraUSD Classic (USTC) — originally TerraUSD (UST) — depegged from the U.S. dollar and dropped to almost zero within weeks. The price of Terra (LUNA) — now Terra Classic (LUNC) — also crashed amid liquidity issues reported at many platforms including Celsius.

Kwon, Terra, and certain company employees were the target of an investigation by South Korean financial authorities, who reportedly raided the offices of crypto exchanges Gopax, Coinone, Upbit, Bithumb, and Korbit in July. A South Korean court later issued a warrant for the arrest of Kwon and five individuals connected to Terra for allegedly violating capital markets laws.

Kwon posted on Sept. 17 that he wasn’t “‘on the run’ or anything similar” after the Singapore Police Force (SPF) said Kwon wasn’t in the city-state. South Korea has no extradition agreement with Singapore, and Interpol’s Red Notice can only request local law enforcement detain Kwon if he’s located.

Amid the controversy over Kwon’s location and potential arrest, Indonesian financial authorities have reportedly been working to modify existing policy to prevent similar situations among leadership at the country’s crypto firms. Cointelegraph reported on Sept. 21 that Commodity Futures Trading Regulatory Agency acting head Didid Noordiatmoko said proposed changes to ensure two-thirds of directors and commissioners at crypto companies were Indonesian citizens would help leadership “from fleeing the country if any problem arises.”

Terra co-founder Do Kwon says he’s ‘making zero effort to hide’ following Interpol notice

Do Kwon told his more than one million Twitter followers that he had not seen his name on Interpol’s Red Notice list, but not all names are made available to the public.

Terra co-founder Do Kwon, wanted by South Korean authorities and whose whereabouts are currently unknown, has suggested he’s not changing his routine in response to potential legal action.

“I’m writing code in my living room,” said Kwon. “I’m making zero effort to hide.”

Active on social media while facing potential arrest and prosecution in South Korea, Kwon showed his location as Singapore on his Twitter account at the time of publication, but a Sept. 17 report from Reuters suggested he may no longer be in the country. The Terra co-founder is a South Korean national. Dual citizenship in South Korea is generally not permitted, though with certain exceptions, but it’s unclear if Kwon holds more than one country’s passport.

A prominent figure in the crypto for his involvement with Terraforms Labs, Kwon became a person of interest among South Korean authorities when Terra’s algorithmic stablecoin TerraUSD Classic (USTC) — originally TerraUSD (UST) — depegged from the United States dollar and dropped to almost zero within weeks. The price of Terra (LUNA) — now Terra Classic (LUNC) — also crashed amid liquidity issues reported on many platforms including Celsius.

Kwon, Terra and other company employees were the target of an investigation by South Korean financial authorities, who reportedly raided the offices of crypto exchanges Gopax, Coinone, Upbit, Bithumb and Korbit in July. A South Korean court later issued a warrant for the arrest of Kwon and five individuals connected to Terra for allegedly violating capital markets laws.

Amid the controversy over Kwon’s location and potential arrest, Indonesian financial authorities have reportedly been working on modifying existing policy to prevent similar situations among leadership at the country’s crypto firms. Cointelegraph reported on Sept. 21 that Commodity Futures Trading Regulatory Agency acting head Didid Noordiatmoko said proposed changes to ensure two-thirds of directors and commissioners at crypto companies were Indonesian citizens would help leadership “from fleeing the country if any problem arises.”

Breaking: Interpol ‘Red Notice’ issued for Do Kwon — South Korea prosecutors

The Terraform Labs co-founder faces charges in South Korea relating to the crash of the Terra ecosystems’ cryptocurrencies.

Interpol has reportedly issued a “Red Notice” to law enforcement worldwide for the arrest of Terraform Labs co-founder Do Kwon.

South Korean prosecutors in Seoul on Monday told Bloomberg the international policing organization issued the notice in response to charges Kwon faces in South Korea related to the collapse of the Terra ecosystem.

The news comes only a week after South Korean prosecutors reportedly asked Interpol to issue a “Red Notice” for Kwon on Sept. 19.

A Red notice is a “request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action” according to the Interpol website.

It also comes less than two weeks after South Korean authorities issued an arrest warrant for Kwon and five other associates for alleged violations of the country’s capital markets laws.

Kwon was previously believed to have been residing in Singapore, but local authorities said on Sept. 17 he wasn’t in the country, with Kwon saying hours later he wasn’t “on the run,” though he didn’t reveal his location.

The Terra ecosystem Kwon co-founded crashed after its algorithmic stablecoin TerraUSD (UST) (now TerraUSD Classic (USTC)) lost its United States dollar peg in May causing billions of dollars worth of liquidations across the cryptocurrency market.