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Crypto crime has become a major concern to regulatory authorities. There have been sharp increases in crypto crime, especially hacks related to fraud, in recent years as Web3 becomes an integral part of daily life. But the spread is not even and there are many emerging trends and patterns to crypto crime, which can be best understood through deep blockchain analytics.

Hacks on Ethereum (or dApps built on Ethereum) are rampant because of its smart contract capabilities and wide-scale dApp usage. Last year, the Ethereum-based Ronin network was hacked for $625 million.

Ethereum currently has ten times more transaction volume than the second blockchain (Tron), with nearly 70% of the market. DeFi fraudsters often target cross-chain bridges when tokens are being transferred from one chain to another, and these bridges are typically built on the Ethereum network. Binance and Ethereum have the most unique active wallet (UAW) addresses, as gauged from January 2022 to January 2023.

A crypto-crime report from Crystal Blockchain outlined some of the statistics regarding the theft of digital tokens, highlighting that China and the USA are the worst hit by fraud and hacks. The US takes the top spot for the total number of incidents against entities, with 14 major attacks since 2011.

However, China is the worst affected in terms of overall value. This is due to two prominent hacks, PlusToken in 2019 ($2.25 Billion) and WoToken in 2020 ($1 Billion). The UK, South Korea, and Japan are also heavily affected by crypto scams. Since 2011, there have been 461 high-profile incidents across 45 countries, for a total of $16.7 billion in stolen crypto, mainly ERC-20 tokens.

The top five areas for security breaches related to crypto are the USA, China, Japan, South Korea, and the UK.

There were many exchanges in China in the early days of cryptocurrency before the government cracked down on it. Binance, one of the worlds largest exchanges, moved from China following the government ban on trading in 2017. Huboi, another Chinese exchange, moved its headquarters to South Korea.

The USA has also experienced high levels of crypto fraud. A lot of token offerings launched in the USA were later revealed to be in violation of the Securities and Exchange Commission (SEC) rules for selling securities. While some had good intentions and simply fell foul of unclear regulations, many were outright Ponzi schemes.

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Mainly, cybercriminals will follow the money, and exploit any opportunities. It makes sense then, that regions where there are more centralized exchanges will be targeted more frequently. Where there are strict rules about the movement of money, more people will turn to crypto, which could potentially result in more incidents of fraud.

There are many ways that cybercriminals can conduct a fraud operation. One of the most common is the rug pull. This is where a team of fraudsters entices investors into a specific project and runs off with the funds. They are basically scam projects.

There are also various subcategories of rug pulls. For instance, a pump-and-dump scheme is where investors are encouraged to invest in a specific token, and then the fraudsters sell it all, reducing the price to nothing. This can be enormously profitable if the fraudsters also put options on the token or use different mechanisms to leverage the price decrease.

Developers can also defraud investors by coding tokens so they can only be sold by them. Rug pulls are not always illegal in the sense that initial investors have a right to sell at any time. But if claims are made to investors that turn out to be completely false, then legal authorities could easily launch an investigation.

According to the same Crystal Blockchain report, most crime occurs through decentralized protocols involving smart contracts. In 2022, over USD $2.6 billion was lost through 132 DeFi attacks. $277 million was lost due to security breaches in 13 instances, while $1.3 billion was lost in fraud schemes. The report also noted that rug pulls were the most popular fraud mechanism in 2022 and that Ethereum is the most popular chain for rug pulls, followed by BNB.

The prevention of crypto fraud is an ongoing issue that will require cooperation between regulatory authorities and Web3 developers, and exchanges. Investors continue to get duped by simple methods and are not conducting due diligence to investigate projects, typically being too easily misled in the hope of enormous profits. With AI and other technologies, fraud will get even more sophisticated as time goes by.

Exchanges and Web3 providers will also need to have an in-house compliance team alongside risk mitigation procedures to ensure customers funds are safe, secure, and insured. Blockchain analytics can go a long way to understanding the path through which stolen crypto travels and how to prevent a breach from occurring in the first place.

The post Why Most Cryptocurrency Fraud Cases Take Place in China and the US appeared first on Coin Edition.

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Why Most Cryptocurrency Fraud Cases Take Place in China and the ... - Investing.com

If you are interested in exploring the realm of cryptocurrency trading, it is worth noting that the Dubai has swiftly evolved into a thriving center for digital currencies. However, the intricacies of the underlying technology can appear intimidating, particularly for newcomers to the concept.

Yet, there is no need to worry. With proper guidance and a strong foundational understanding, you can confidently navigate this dynamic market. This comprehensive guide aims to equip you with the necessary steps to initiate your journey, enabling you to trade cryptocurrencies with ease and assurance in Dubai. Together, let us embark on this enriching expedition and unlock the potential of digital assets!

Thats why its important to take the time to understand how cryptocurrency works, what exchanges there are in Dubai, and how to safely use them. In this article, well share all the facts about cryptocurrency exchanges and give you some tips on how to make sure that your trading is secure. From understanding the different types of exchanges available to knowing which ones are best for traders in Dubai, by following these simple steps you can rest assured that your trades will be safe and successful.

Dubai is quickly becoming a global hub for cryptocurrency trading. The city has a number of factors that make it an attractive place to trade cryptocurrencies, including:

Favorable business environment: Dubai has a very favorable business environment, with low taxes, a strong legal system, and a skilled workforce. This makes it an attractive place to set up a business, including a cryptocurrency trading business.

Growing cryptocurrency market: Dubai is one of the fastest-growing cryptocurrency markets in the world. This is due to a number of factors, including the governments support for the industry, the large number of international investors in Dubai, and the growing popularity of cryptocurrency among the local population.

Regulatory clarity: The Dubai government has taken a clear stance in favor of cryptocurrency, and has issued a number of regulations to govern the industry. This provides investors with confidence that the industry is regulated and that their investments are safe.

Access to global markets: Dubai is a major international trading hub, and this gives cryptocurrency traders access to a global market. This means that traders can trade cryptocurrencies with people all over the world, and can take advantage of different market conditions.

If youre looking to buy or sell cryptocurrency in Dubai, the first thing youll need to do is find a reliable cryptocurrency exchange. Finding the right one for your needs is crucial for successful trading, as many exchanges are only available in certain countries and have different rules regarding things such as registration requirements and transaction fees.

Fortunately, there are a few exchanges which are popular among Dubai traders and provide the security, liquidity, and trading fees that you need to make successful transactions. Heres a look at the top three:

Also Read: Find Your Match : Tips to Pick the Best Crypto Trading Platform

When you sell cryptocurrency in Dubai, its important to make sure your transactions are secure and safe. One of the best ways to do this is to use a reputable cryptocurrency exchange.

However, with so many exchanges available, its important to understand some key security best practices that should be followed when using an exchange. Here are some tips to keep in mind:

Following these tips will help ensure that when you sell cryptocurrency in Dubai, your transactions are secure and private.

When it comes to selling cryptocurrency in Dubai, youll want to make sure you are safely storing it on an exchange. After all, there have been incidents where people have lost money when their digital wallets have been hacked or stolen.

Cryptocurrency exchanges are secure and offer multiple layers of protection to make sure your cryptocurrency is safe from theft and unauthorized access. Here are some of the features that make them a secure option for storing your cryptocurrency:

Encrypted Wallets:

Exchanges use encrypted wallets, which means that all your information is encrypted and cant be accessed by anyone without the encryption key. That way, even if someone were to gain access to your account, they wouldnt be able to open it or see whats inside.

Multi-Factor Authentication

Most cryptocurrency exchanges require multi-factor authentication so that only you can access your account. This usually involves confirming your identity with a code sent to your phone or email address.

Cold Storage

Cryptocurrency exchanges also use cold storage wallets to store digital assets securely offline in order to protect them from hackers and cyber criminals. All transactions go through these cold storage wallets before they are sent out into the network, making them much harder for hackers to target.

All in all, when it comes to selling cryptocurrency in Dubai, you can feel confident knowing that cryptocurrency exchanges offer a secure way to store your cryptocurrency and protect it from any potential threats.

Also Read: Multisig Wallet: The Future of Secure Crypto Transactions

Do your research: Before you start trading cryptocurrency, it is important to do your research and understand the risks involved. Cryptocurrency is a volatile asset, and prices can fluctuate wildly. It is important to understand the risks before you invest any money.

Use a reputable exchange: When you are ready to start trading cryptocurrency, it is important to use a reputable exchange. There are many exchanges available, and not all of them are created equal. Some exchanges are more secure than others, and some have better customer service. It is important to do your research and choose an exchange that you trust.

Start small: When you are first starting out, it is a good idea to start small. Dont invest more money than you can afford to lose. Cryptocurrency is a new and volatile asset, and it is important to be cautious when you are first starting out.

Be patient: Cryptocurrency is a long-term investment. Dont expect to get rich quick. It takes time to build wealth through cryptocurrency investing. Be patient and stay focused on your goals.

Conclusion:

Cryptocurrency exchanges are a great way to sell and buy cryptocurrency in Dubai. But its important to be aware of the risks involved and to make sure that you use a secure, reputable exchange. With the right precautions, you can rest assured that the money you make from cryptocurrency exchange transactions will be secure and can be transferred to your bank account safely.

Remember: safety should always be the top priority when youre dealing with cryptocurrency exchanges. Make sure you research and choose the best exchange for you and take the necessary measures to ensure that your funds are safe and that you can track each transaction and withdrawal. With these precautions in place, you can maximize your profits and enjoy the benefits of trading cryptocurrency in Dubai.

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How to Safely Use Cryptocurrency Exchanges in Dubai - Crypto Times

United States v. Rederick, 2023 WL 3014781 (8thCir. 2023)

An investigator was monitoring Larry Rederickscell phone locationas part of an investigation into methamphetamine sales. After learning Rederick was driving to Nebraska to visit an individual known by police to be involved with drug dealing, the investigator called troopers, told them about his investigation and asked them to stop Rederick. He asked the troopers to try to establish an independent basis for the stop, but if not, to stop Rederick to investigate drug trafficking.

A trooper stopped Rederick for towing a trailer that did not have a light illuminating the rear license plate. A sedan was on the trailer. The trooper spent 16 minutes writing a warning ticket for the traffic violation. Within the first 12 minutes, he asked a detector dog team to come to the scene. The dog team arrived 22 minutes into the stop. Five minutes later, the dog gave a positive indication of the presence of a narcotic at both doors of the pickup and at the back of the sedan. A subsequent search revealed meth in the sedans trunk.

The trial court denied Redericks motion to suppress the evidence; a jury convicted Rederick for possession of methamphetamine. The court of appeals held the trooper had two independent, lawful bases on which to stop Rederick. First, there wasprobable causeto stop him for the traffic violation. Second, applying the collective knowledge doctrine, the troopers had reasonable suspicion to stop Rederick to investigate possible drug trafficking.

Thecollective knowledge doctrineconsiders the separate pieces of information held by multiple officers involved in an investigation: The collective knowledge of law enforcement officers conducting an investigation is sufficient to provide reasonable suspicion, and the collective knowledge can be imputed to the individual officer who initiated the traffic stop when there is some communication between the officers. It was not necessary for the troopers involved in the stop to know the details of the drug trafficking investigation. All they needed was a directive to stop Rederick that came from someone who hadreasonable suspicionto believe Rederick was trafficking in illegal drugs.

Rederick argued the troopers illegally delayed the traffic stop to conduct a detector dog sniff, citing the rule ofRodriguez v. United States(575 U.S. 348 (2015)). However, theRodriguezdecision is all about delaying a traffic stop to investigate. In this case, the troopers had an independent basis to detain Rederick. The troopers had reasonable suspicionbeforestopping Rederick and the reasonable suspicion remained throughout the stop. Only 27 minutes passed from the stop until the dogs indication: This delay did not violate the Fourth Amendment because the troopers acted diligently to pursue the mission of the stop: to assist with the investigation of Redericks drug-related activity.

Rederick relied on the testimony of Mary E. Cablk to argue the detector dog was unreliable. However, when directly asked whether the detector dog was reliable, Cablk quickly conceded, I cant tell you that he is or he isnt. (SeeUnited States v. Spikes(2021 WL 5014500 (D. Colo. 2021)) andUnited States v. Rederick(2021 WL 5547702 (D. So. Dakota 2021)).) As the trial court highlighted, Dr. Cablk has never trained any drug detection K-9 teams herselfDr. Cablk essentially found the records to be unavailing, in part because shedid not know howto interpret them. A trainer for the detection dog team testified that the agency used single-blind testing in certification. The handler produced training records showing positive, accurate field performance and certification. The court found no error in the assessment of the reliability of the detector dog because there were proper training records and certification done with single-blind testing.

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Collective knowledge doctrine applies to a traffic stop - Police News

A hot potato: Fusus is a surveillance platform integrating public and private cameras into an accessible, cloud-based surveillance network. Law enforcement organizations tout the technology as an essential expansion of monitoring capabilities by creating a real-time crime lab. However, privacy advocates and civil rights watchdogs see it as a threat to the Fourth Amendment and a high-risk cybersecurity target full of personally identifiable information.

Fusus is designed to provide law enforcement organizations (LEO) and other public safety institutions access to accurate, relevant information via a cloud-based network of authorized video monitoring assets. The company claims the platform "enhances all public safety and investigations assets for law enforcement, first responders, and private security personnel." The system began rolling out in several small participating cities and organizations in 2019, later expanding to a footprint of more than 33,000 supported cameras in more than 60 cities and counties nationwide.

Click to enlarge.

Law enforcement and public safety professionals say the system gives them much-needed access to real-time incidents, allowing faster response times and decreased criminal activity without risking the safety of local contributors. For example, businesses and other organizations regularly receiving requests to review video footage for investigative purposes can choose to deploy specific hardware devices, known as FususCores, to their network. Once deployed, these devices make it possible to include the owner's cameras in the area's more extensive Fusus network.

The system then adds authorized camera feeds to FususOne, a map-based interface that combines all access points into a single feed. Access to this aggregated dashboard and its tools saves law enforcement and other first responders valuable time by directly accessing the cameras and information rather than going to the site and requesting permission to review the video.

The company says police and other officials do not have unfettered reign over the camera streams. The system relies on policy-based conditional access, which gives camera owners the final say regarding whether or not to grant or deny access to their camera streams. Fusus and its clients claim this makes the system a low-risk but high-return tool for expanding monitoring activities.

Opponents argue the platform creates a supersized network of cameras and personal data, increasing the potential for abuse and misuse. The Triad Abolition Project's Nia Sadler cites the potential for over-policing areas already receiving increased attention and potentially (and unfairly) targeting minority groups, protestors, or others based on demographics or affiliations.

Albert Fox Cahn, founder of the Surveillance Technology Oversight Project (S.T.O.P.) in New York, believes Fusus creates many privacy and civil rights concerns to consider before implementation.

"Fusus takes surveillance tools that are constitutional on their own, and aggregates them into the kind of persistence tracking that is blatantly unconstitutional (when used by government bodies)," Cahn told Reuters.

From a technical standpoint, the amount of data aggregated in Fusus and the number of users accessing it raises concerns. The potential for exploiting connections to thousands of disparate feeds could make the technology a prime target for hackers looking to sow chaos or obtain unauthorized access to available personal or business information. If there's one thing we've learned about cloud-based technologies nothing is ever truly safe.

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Privacy and civil rights groups warn against rapidly growing mass ... - TechSpot

Theres Pepe the soccer player, Pepe the guitarist, and Pepe the racing driver. And now theres Pepe the new frog-themed cryptocurrency.

The coin, based on an internet meme, has taken token markets by storm in the month since its launch. Trading has been frenzied, lifting Pepes market value to nearly $2 billion at one point, though that has since slid by more than half.

Only in the world of crypto could a currency that pays homage to a cartoon frog capture the attention of market participantsand possibly even Elon Musk. Its emblematic of the hype that continues to underpin crypto markets, fueled by the actions of a few dominant players and influenced by the price of Bitcoin.

The new memecoina subcategory of altcoin, which refers to tokens other than Bitcoin and Ether is the latest to capture the attention of the crypto crowd. It joins the more familiar Dogecoin, around since 2013, which refers to the doge meme involving a Shiba Inu dog. Dogecoin is now the eighth-largest digital asset by market capitalization and has inspired countless spinoffs, including Shiba Inu, which is the 15th-largest crypto.

Pepe is growing faster than its older peers. It took the frog coin only 22 days for the number of holders recorded on the blockchain to surpass 100,000, according to the crypto research group Messari. The same growth took 90 days for Shiba Inu.

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Like the dog-themed coins, Pepe appears to have caught the attention of Tesla s (ticker: TSLA) Musk, who has said he owns Dogecoin and has toyed with it for years in references on Twitter and television. Pepe prices spiked some 50% in one volatile spurt that came immediately after Musk tweeted the Pepe the Frog meme, though he didnt explicitly mention the token.

Pepes meteoric rise is unlike anything weve witnessed in crypto history, Chase Devens, an analyst at Messari, wrote in a note earlier in May. Here is a look at the coins brief past, how it is traded, and what could happen to the price.

Pepe was launched in mid-April by a team of anonymous developers. The groups website is littered with internet in-jokes, including the phrase make memecoins great again, and details about how the supply of tokens is 420,690,000,000,000.

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Pepe is a meme coin with no intrinsic value or expectation of financial return, the developers say. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.

The token references the Pepe the Frog internet meme, which itself is based on a character from a 2005 comic by cartoonist Matt Furie. As a meme, Pepe can appear in a variety of waysthe frog often has different facial expressions and is edited into different contextsbut in its most basic form, it seems to represent smugness.

The Pepe meme has been picked up by internet-based radical groups, earning it a checkered cultural reputation. The Anti-Defamation League has named the meme a hate symbol, while noting that the character didnt initially have racist connotations and that many uses continue to be non-bigoted.

Pepe is now available on a number of major crypto exchanges. That includes Binance, the worlds largest venue for digital-asset trading, as well as platforms including OKX, Kraken, KuCoin, and the decentralized exchange UniSwap.

The U.S.-based broker

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Investors should note that digital asset trading and most crypto exchanges remain unregulated in the U.S.

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The price of Pepe rose as much as 6,300% between April 18 and its zenith on May 5, after being listed on a number of major exchanges.

Before it was listed on OKX, Pepe had a market cap of around $275 million, according to crypto data provider CoinGecko. In a spike after it was listed on Binance, its market cap peaked at $1.7 billion, with its trading volumes in the first week of May routinely dwarfing those of Dogecoin or Shiba Inu. The market capitalization of Pepe was hovering near $650 million as of Wednesday.

For those outside crypto, Pepe may represent yet another example of why digital assets are worthless: It has no intrinsic value and exhibits dangerous levels of volatility.

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For those inside the industry, though, there is a logic to the Pepe trade. The key is getting ahead of the hype and fear of missing out that new coins can generate as interest grows. That dynamic, alongside signs that influential market participants known as crypto whales are wading in, suggests the frenzy around Pepe may be far from over.

Arguably the most significant driver of Pepes growth is the fact that crypto participants are now familiar with how quickly memecoins can grow, said Devens, of Messari. It pays to be early, and this self-reinforcing force pulls in more buyers as the meme grows in popularity.

That popularity only grows as tokens like Pepe get listed on crypto exchanges. The first major factor lifting prices of the frog crypto was its listing on OKX on May 1, which was soon mirrored by Binance on May 5. While exchanges dont endorse coinsBinance has kept Pepe in its Innovation Zone for smaller and often more volatile coinslistings can act as implicit endorsements and funnel billions of dollars of liquidity to tokens.

The wider dynamics of crypto markets play a role in determining memecoin prices. Trends in Bitcoin, the largest coin, tend to lead prices for all cryptocurrencies, which has worked out well for Pepe.

Bitcoin has rallied by some two-third so far this year, helped by rising expectations that the Federal Reserve has finished raising interest rates to battle inflation. Memecoins have taken off as well in a surge that could signal either a strengthening bull market or froth before a correction.

When meme coins pump it often tells us where we are in the crypto cycle, Antoni Trenchev, co-founder and managing partner at crypto lender Nexo, said in a research note shortly after Pepe began to surge higher.

Trenchev pointed to gains seen by the token Squidreferencing the popular Netflix series Squid Gamein late 2021, when the token rose by more than 200,000%. In hindsight, that was a sign that crypto markets had topped out.

Time will tell if the emergence of Pepe-the-Frog heralds the beginning of a new crypto summer or something a lot bleaker, Trenchev wrote.

Write to Jack Denton at jack.denton@barrons.com

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Memecoin Pepe Is the New Crypto Craze. Move Over, Dogecoin. - Barron's