I want I had a solution to overview this ebook with out having first learn final 12 months’s “Tracers in the Dark.” Whereas Tracers talked in regards to the folks concerned in investigating numerous crypto-based crimes and people early researchers who made the tracing course of doable, Carlisle tells most of the similar tales, however in a much less participating method. The info are there, and once they speak about the identical instances, they align properly. However Andy Greenberg’s Tracers makes these instances tales about folks, whereas Carlisle portrays info with out character improvement which I might not have realized was essential or helpful in a ebook on Cash Laundering had I not learn Tracers first.
As to the info? I realized a ton, particularly by feeding my ADD nature by chasing fascinating footnotes — greater than 350 references are supplied! Thanks!!!
Within the early a part of the ebook he covers the entire necessary instances: Silk Street, Mt. Gox, and so forth.
The place this ebook is nice, and it’s far superior to Tracers as an academic useful resource on this regard, is how money-laundering works in Crypto. Mixers and Coinswaps are defined properly, with a number of of the associated instances resembling Helix and Bitcoin Fog, being defined. The significance of regulation and the way regulators have adopted behind crypto developments is a significant theme of the ebook. From regulating exchanges, to Bitcoin ATMs, to privateness wallets resembling Wasabi Pockets, and the talk on whether or not privateness wallets can or must be regulated.
The makes an attempt of FinCEN to introduce additional laws and the (in my view) Astroturfed outcry in opposition to them is very fascinating.
An instance of what I believed to be a really rational and essential AML coverage could be the FinCEN Draft Rule-Making Proposal, launched 18dev2020 for “requirements for certain transactions involving convertible virtual currencies or digital assets” tried to require transactions larger than $3k to require proof of the id of the recipient if despatched to a non-public pockets, and would have required a forex transaction report on any motion above $10k. The outlash was extreme and the rule-making positioned on maintain.
A pleasant protection of the historical past of crypto sanctions by OFAC can also be portrayed, from Suex, Chatex, Garantex, Bitzlato, and IRGC-related ransomware. And a historical past of the evolution of ransomware, which might not be doable with out these unidentified and unaccounted for giant forex transactions that cryptocurrency has enabled (and that FinCEN has been TRYING to forestall!)
One instance of sanctioning crypto was the OFAC sanctions against Lazarus Group Ethereum addressessanctioned together with certainly one of their chosen Mixers, Blender.io. (Sanctioned addresses are listed here.) I appreciated a number of the extra particulars Carlisle supplied on Lazarus Group crypto hacker cash launderers Tian Yinyin and Li Jaidong (snowjohn and khaleesi) who moved at the very least $100M, together with buying at the very least $1.4 M in Apple iTunes present playing cards! (Although once more, no “characters”, simply names.)
The latter a part of the ebook does a pleasant job explaining the best way Ethereum opened up a lot of prospects with Good Contracts. Carlisle does an excellent job explaining Ethereum and ERC-20 tokens and the way DAOs, DEXs, and DApps are constructed utilizing the Good Contracts of Ethereum with extra on the DeFi system together with how Bridges work. He additionally explains NFTs and the way additionally they had been supercharged by ERC-721 (and abused by thieves, fraudsters, insiders, and cash launderers.) This was the very best introduction to that complete ecosystem that I’ve learn. Nice job!
The Bitfinex hack, which opens the ebook, targeted on 94,643.29 BTC from 2016 sitting beneath a microscope, untouched for six years, till it moved in Feb 2022 resulting in the arrest of Dutch and Razzlekhan with $3.5 Billion seized, felt prefer it was arrange because the climax of the ebook as we returned to the story from the opening chapter. The middleman chapters helped us perceive the now-revealed mechanisms, however once more, it was info with out characters, which is ok – I simply acquired ruined by the engagement of Tracers.
The ultimate chapter looks like one thing the Elliptic advertising and marketing division compelled on him. (The opposite main crypto business gamers all do the identical factor, so not choosing on Elliptic. It was the primary crypto tracing instrument I ever used!) The compulsory business toeing the road of “oh, but less than 1% of crypto transactions are illicit!” was a irritating finish to an in any other case respectable ebook. Nobody will ever persuade me that the overwhelming majority of crypto transactions contain no “transaction” in any respect, however are wash buying and selling at an inconceivable scale designed to govern the worth of cryptocurrencies to encourage funding and enrich the HODLers and companies whose livelihood crypto is.
Incredible content material – even presumably as an accompanying textual content for a crypto crime course at a college (sure, my wheels are turning!) particularly with the wealthy depth of referenced articles, insurance policies, and instances. However for a enjoyable crypto crime STORY I might nonetheless go along with “Tracers In the Dark.”
Author: Gary Warner
Date: 2024-01-20 21:46:05
