Bitfinex hacker’s wife jailed for laundering

Heather Morgan, also known as Razzlekhan, has been sentenced to 18 months in prison for her role in laundering Bitcoin stolen during the 2016 Bitfinex hack. Her husband, Ilya Lichtenstein, who orchestrated the theft of 119,754 Bitcoin, received a five-year prison term. While Morgan was not involved in the hacking itself, she played a significant part in concealing the stolen funds, now valued at $10b.

The couple’s sentences were reduced due to their cooperation with US authorities in other crypto-related cases. However, US District Judge Colleen Kollar-Kotelly stressed the deliberate nature of Morgan’s actions, highlighting the sophisticated methods she used, such as fake identities and small transfers to evade detection.

Morgan’s request for a ‘time served’ sentence was denied, despite claims of harsh pretrial detention conditions. Following her prison term, she will face 36 months of supervised release and a $200 fine. The case underscores the growing scrutiny on crypto-related crime and the severe penalties for offenders.

Trump deepfake scam bot targets crypto users

Russian security experts have uncovered a new deepfake scam exploiting the image of Donald Trump, targeting English-speaking audiences. FACCT, a Moscow-based cybercrime prevention firm, reported that scammers are using a bot to create deepfake videos of prominent figures like Trump, Elon Musk, and Tucker Carlson. These videos are being shared on platforms such as TikTok and YouTube to promote fraudulent crypto exchanges.

The bot allows users to generate customised videos with text up to 400 characters long, which fraudsters use to advertise fake trading platforms. FACCT identified three primary scams: fake exchanges where victims’ tokens are stolen, malware links that compromise crypto wallets, and bogus tokens that can’t be sold.

This warning follows a rise in crypto-related scams in Russia, including digital ruble frauds. Authorities are urging vigilance as the Russian Central Bank prepares to launch its central bank digital currency nationwide next year.

AI voice theft sparks David Attenborough’s outrage

David Attenborough has criticised American AI firms for cloning his voice to narrate partisan reports. Outlets such as The Intellectualist have used his distinctive voice for topics including US politics and the war in Ukraine.

The broadcaster described these acts as ‘identity theft’ and expressed profound dismay over losing control of his voice after decades of truthful storytelling. Scarlett Johansson has faced a similar issue, with AI mimicking her voice for an online persona called ‘Sky’.

Experts warn that such technology poses risks to reputations and legacies. Dr Jennifer Williams of Southampton University highlighted the troubling implications for Attenborough’s legacy and authenticity in the public eye.

Regulations to prevent voice cloning remain absent, raising concerns about its misuse. The Intellectualist has yet to comment on Attenborough’s allegations.

UK and allies warn of growing cyberattacks exploiting zero-day vulnerabilities

The National Cyber Security Centre (NCSC) and its international partners have issued an urgent advisory highlighting the growing trend of threat actors exploiting zero-day vulnerabilities, emphasising the importance of proactive security measures.

This joint advisory has been published by NCSC (UK), the US Cybersecurity and Infrastructure Security Agency (CISA), the US Federal Bureau of Investigation (FBI), US National Security Agency (NSA), Australian Cyber Security Centre (ACSC), Canadian Centre for Cyber Security (CCCS), New Zealand National Cyber Security Centre (NCSC-NZ), and CERT NZ.

The UK NCSC, in collaboration with cybersecurity agencies from the United States, Australia, Canada, New Zealand, and others, identified the top 15 most commonly exploited vulnerabilities of 2023. A majority of these vulnerabilities were initially targeted as zero-days—newly discovered flaws without immediate patches, allowing cybercriminals to strike high-priority targets before fixes were available.

The advisory highlights a notable shift compared to 2022, when fewer than half of the top vulnerabilities were exploited as zero-days. The rise in zero-day attacks has continued into 2024, underlining the evolving tactics of cyber adversaries.

The advisory urges organisations to stay vigilant in their vulnerability management practices, prioritising the timely application of security updates and ensuring that all assets are identified and protected. It also calls on technology vendors and developers to adopt secure-by-design principles to minimise product vulnerabilities from the outset.

T-Mobile targeted in Chinese cyber-espionage campaign

T-Mobile‘s network was among those breached in a prolonged cyber-espionage campaign attributed to Chinese intelligence-linked hackers, according to a Wall Street Journal report. The attackers allegedly targeted multiple US and international telecom companies to monitor cellphone communications of high-value intelligence targets. T-Mobile confirmed it was aware of the industry-wide attack but stated there was no significant impact on its systems or evidence of customer data being compromised.

The Federal Bureau of Investigation (FBI) and the US Cybersecurity and Infrastructure Security Agency (CISA) recently disclosed that China-linked hackers intercepted surveillance data intended for American law enforcement by infiltrating telecom networks. Earlier reports revealed breaches into US broadband providers, including Verizon, AT&T, and Lumen Technologies, where hackers accessed systems used for court-authorised wiretapping.

China has consistently denied allegations of engaging in cyber espionage, rejecting claims by the US and its allies that it orchestrates such operations. The latest revelations highlight persistent vulnerabilities in critical communication networks targeted by state-backed hackers.

Tech entrepreneur sentenced for bitcoin theft

Ilya Lichtenstein, a New York tech entrepreneur, was sentenced to five years in prison for laundering stolen cryptocurrency from Bitfinex, one of the world’s largest exchanges. Lichtenstein admitted to hacking Bitfinex in 2016, stealing around 120,000 bitcoin using advanced tools. At the time of the theft, the bitcoin was valued at $71 million but had soared to $4.5 billion by his arrest in 2022.

Lichtenstein and his wife, Heather Morgan, were arrested in February 2022. Morgan, a self-styled rapper known as “Razzlekhan,” also pleaded guilty to conspiracy charges and is set to be sentenced on November 18. US authorities recovered $3.6 billion of the stolen funds in what Deputy Attorney General Lisa Monaco called the largest financial seizure in the Justice Department’s history.

Alongside his prison term, Lichtenstein will serve three years of supervised release, marking a significant milestone in the fight against cryptocurrency-related crimes.

UN cybercrime treaty heads to final vote amid US support

The UN Cybercrime Convention is moving closer to a full vote in the General Assembly following its approval at a recent meeting. Despite significant opposition from the private sector, civil society, and US congressional members, the United States and the United Kingdom defended their support of the treaty.

US officials acknowledged concerns but emphasised that ‘this Convention, by its explicit terms, does not permit Parties to misuse the Convention or any part of it to suppress human rights’ and that ‘the US further call on all states to take necessary steps within their domestic legal systems to ensure the Convention will not be applied in a manner inconsistent with human rights obligations, including those relating to speech, political dissent, and sexual identity’.

Jonathan Shrier, a US representative to the UN, emphasised that the US would hold governments accountable for any misuse of the treaty and encouraged signatories to pass laws safeguarding human rights. He also highlighted mechanisms to monitor and address future abuses under the treaty, urging countries to reject data-sharing requests from those violating its human rights protections.

The UK also issued a statement endorsing the treaty but acknowledged that some member states have already resisted its human rights obligations. In the statement, the UK highlighted that it ‘will not cooperate with any country which does not comply with the safeguards required by this Convention’.

DiploFoundation recently organised an expert discussion to discuss directly with some delegations the contents of the UN convention, including the human rights provisions.

South Korean authorities crack down on crypto scam

South Korean authorities have arrested 215 individuals in connection with the country’s largest cryptocurrency investment scam, which reportedly defrauded investors of 320B won ($228.4M). Among those detained is the alleged leader of the operation, who is accused of selling 28 worthless virtual tokens to approximately 15,000 victims with promises of high returns.

According to police, the group issued six of the tokens on overseas crypto exchanges and manipulated their values through market-making teams. To attract investors, they established consulting companies, recruited sales teams, and targeted viewers of a YouTube channel. Officials revealed that many of the tokens were fraudulent and lacked real value.

This case highlights growing concerns over cryptocurrency-related scams in South Korea and globally, as unregulated digital assets continue to attract both investors and opportunistic criminals. The arrests mark a significant step in addressing financial crimes in the fast-evolving crypto landscape.

US alleges surveillance data theft from telecom companies by China-linked hackers

Hackers with alleged links to China have stolen sensitive data from US telecommunications firms, targeting information intended for law enforcement agencies. US officials announced the breach on Wednesday, revealing that multiple telecom networks had been compromised. The hackers reportedly accessed call records and communications of individuals in government and political roles, according to a joint statement from the FBI and the Cybersecurity and Infrastructure Security Agency (CISA).

Among the data stolen was information connected to court-ordered surveillance requests made by US law enforcement. The agencies provided limited details about the breach and have yet to disclose the number of companies affected. CISA and the FBI declined to comment further, with additional insights expected as investigations continue.

The incident aligns with earlier reports in the Wall Street Journal, which suggested that Chinese hackers may have infiltrated systems intended for law enforcement to monitor communications. Such claims have led to growing concerns about the security of US telecom infrastructure, particularly given reports of targeted attacks on the phones of high-profile political figures.

The Department of Homeland Security’s Cyber Safety Review Board will investigate the breach, part of an effort to evaluate significant digital security threats. China’s embassy in Washington declined to comment on the latest hacking allegations, which it has previously dismissed as unfounded.

UN Cybercrime Convention: What does it mean and how will it impact all of us?

After three years of negotiations initiated by Russia in 2017, the UN member states at the Ad Hoc Committee (AHC) adopted the draft of the first globally binding legal instrument on cybercrime. This convention will be presented to the UN General Assembly for formal adoption later this year. The Chair emphasised that the convention represents a criminal justice legal instrument and that the aim is to combat cybercrime by prohibiting certain behaviours by physical persons rather than to regulate the behaviour of member states.

The convention’s adoption has proceeded despite significant opposition from human rights groups, civil society, and technology companies, who had raised concerns about the potential risks of increased surveillance. In July, DiploFoundation invited experts from various stakeholder groups to discuss their expectations before the final round of UN negotiations and to review the draft treaty. Experts noted an unprecedented alignment between industry and civil society on concerns with the draft, emphasising the urgent need for a treaty focused on core cybercrime offences, strengthened by robust safeguards and precise intent requirements.

Once formally adopted, how will the UN Cybercrime Convention (further – UN Convention) impact the security of users in the cyber environment? What does this legal instrument actually state about cross-border cooperation in combating cybercrime? What human rights protections and safeguards does it provide?

We invited experts representing the participating delegations in these negotiations to provide us with a better understanding of the agreed draft convention and its practical implications for all of us. 

Below, we’re sharing the main takeaways, and if you wish to watch the entire discussion, please follow this link.

Overview of the treaty: What would change once the UN Convention comes into effect?

Irene Grohsmann, Political Affairs Officer, Arms Control, Disarmament and Cybersecurity at the Federal Department of Foreign Affairs FDFA (Switzerland), started outlining that there are a few things that will change once the convention comes into force. The Convention will be new in the sense that it provides a legal basis for the first time at the UN level for states to request mutual legal assistance from each other and other cooperation measures to fight cybercrime. It will also provide, for the first time, a global legal basis for further harmonisation of criminal legal provisions regarding cybercrime between those future states parties to the convention. 

‘The Convention will be new in a sense that it provides a legal basis for the first time at UN level for states to request mutual legal assistance from each other and other cooperation measures to fight cybercrime. It will also provide, for the first time, a global legal basis for further harmonisation of criminal legal provisions, regarding cybercrime, between those future states parties to the convention.’

Irene Grohsmann, Political Affairs Officer, Arms Control, Disarmament and Cybersecurity at the Federal Department of Foreign Affairs FDFA (Switzerland)

At the same time, as Irene mentioned, the Convention will remain the same, specifically not the currently applicable standards (such as data protection and human rights safeguards) for fighting cybercrime in the context of law enforcement or cooperation measures. The new UN Convention does not change those existing standards but rather upholds them. 

UN Convention vs. the existing instruments: How would they co-exist?

Irene reminded that the UN Convention largely relies on, and was particularly inspired by the Budapest Convention, and therefore will not exclude the application of other existing international or regional instruments, nor will it take precedence over them. It will rather exist, side by side, with other relevant legal frameworks. This is explicitly stated in the Convention’s preamble and Article 60. Furthermore, regional conventions are typically more concrete and thus remain highly relevant in combating cybercrime. Irene noted that when states are parties to a regional convention and the UN Convention, they can opt for the regional one if it offers a more specific basis for cooperation. When states have ratified multiple conventions, they use key principles to decide which to apply, such as specificity and favorability.

Andrew Owusu-Agyemang, Deputy Manager at the Cyber Security Authority (Ghana), agreed with Irene, highlighting the Malabo Convention’s specific provisions on data protection, cybersecurity, and national cybersecurity policy. Andrew noted that the Budapest Convention complements Malabo by covering procedural powers and international cooperation gaps, benefiting parties like Ghana, a member of both. The novelty in the UN Cybercrime Convention, however, is the fact that the text introduces the criminalisation of the non-consensual dissemination of intimate images. Together, these instruments are complementary, filling gaps where others need more.

‘All these treaties can coexist because they are complementary in nature and do not polarize each other. However, the novelty in the UN Cybercrime Convention is that it introduces the criminalization of the non-consensual dissemination of intimate images.’

Andrew Owusu-Agyemang, Deputy Manager at the Cyber Security Authority (Ghana)

Cross-border cooperation and access to electronic evidence: What does the UN Convention say about this, including Article 27?

Catalina Vera Toro, Alternate Representative, Permanent Mission of Chile to the OAS, Ministry of Foreign Affairs (Chile), addressed how the UN Cybercrime Convention, particularly Article 27, handles cross-border cooperation for accessing electronic evidence, allowing states to compel individuals to produce data stored domestically or abroad if they have access to it. However, this raises concerns over accessing data across borders without the host country’s consent—a contentious issue in cybercrime. The Convention emphasises state sovereignty and encourages cooperation through mutual legal assistance rather than unilateral actions, advising states to request data access through established frameworks. While Article 27 allows states to order individuals within their borders to provide electronic data, it does not provide for unilateral cross-border data access without the consent of the other state involved.

‘The fact that we have a convention is also a positive note on what diplomacy and multilateralism can achieve. This convention helps bridge gaps between existing agreements and brings in new countries that are not part of those instruments, making it an instrumental tool for addressing cybercrime. That’s another positive aspect to consider.’

Catalina Vera Toro, Alternate Representative, Permanent Mission of Chile to the OAS, Ministry of Foreign Affairs (Chile)

Catalina noted that this approach balances effective law enforcement with respect for sovereignty. Unlike the Budapest Convention, which raised sovereignty concerns, the UN Convention emphasises cooperation to address these fears. While some states worry it may bypass formal processes, the Convention’s focus on mutual assistance aims to respect jurisdictions while enabling cybercrime cooperation.

Briony Daley Whitworth, Assistant Secretary, Cyber Affairs & Critical Technology Branch, Department of Foreign Affairs and Trade (Australia), added on the placement of this article in the convention as it pertains to law enforcement powers for investigating cybercrime within a state’s territory, distinct from cross-border data sharing. This article must be considered alongside the jurisdiction chapter, which outlines the treaty’s provisions for investigating cybercrimes, including those linked to the territory of each state party. The sovereignty provisions set limits on enforcement powers, dictating where they apply. The article also includes procedural safeguards for data submission requests, such as judicial review. Importantly, ‘specified electronic data’ must be clarified, covering data on personal devices and data controlled but not possessed by individuals, such as cloud-stored information. Legal entities, not just individuals, may be involved; for example, law enforcement would need to request data from a provider like Google rather than the user. Briony highlighted that this framework in the UN Convention drew heavily from the Budapest Convention and stressed the importance of examining its existing interpretations, used by over 76 countries, to guide how Article 27 might be applied, reinforcing that cross-border data access requires the knowledge of the state involved.

Does the convention clarify how individuals and entities can challenge data requests from law enforcement? Briony emphasised the need for clear conditions and safeguards, noting that the convention requires compliance with international human rights laws and domestic review mechanisms. Individuals can challenge orders through judicial review, and law enforcement must justify warrants with scope, duration, and target limitations. However, Briony cautioned that the treaty’s high-level language relies on countries implementing these safeguards domestically. Catalina added that the convention’s protections work best as an integrated framework, noting that countries with strong checks and balances, like Chile, already offer resources for individual rights protection.

‘Human rights protections were really at the forefront of a lot of the negotiations over the last couple of years. We managed to set a uniquely high bar in the general provisions on human rights protections for a UN convention, particularly a criminal convention. This convention not only affirms that human rights apply but also states that nothing in it can be interpreted to permit the suppression of human rights. Additionally, it includes an article on the protection of personal data during international transfers, which is rare for a UN crime convention. Objectively, this convention offers more numerous and robust safeguards than other UN conventions. One of our priorities was ensuring that this convention does not legitimise bad actions. While we cannot stop bad actors, we can ensure that this convention helps combat their actions without legitimising them, which we have largely achieved through the human rights protections.’

Briony Daley Whitworth, Assistant Secretary, Cyber Affairs & Critical Technology Branch, Department of Foreign Affairs and Trade (Australia)

How does the UN Convention define and protect ‘electronic data’?

Catalina noted that defining ‘electronic data’ was challenging throughout negotiations, with interpretations varying based on a country’s governance, which impacts legal frameworks and human rights protections. The convention defines electronic data broadly, covering all types of data stored in digital services, including personal documents, photos, and notes – regardless of whether that data has been communicated to anyone. Importantly, accessing electronic data generally has a lower threshold than accessing content or traffic data, which have more specific definitions within the convention.

This broader definition enables states to request access to electronic data, even if it contains private information intended to remain confidential. However, Catalina emphasised that domestic legal frameworks and other provisions within the convention are designed to protect human rights and safeguard individual privacy. 

Briony also clarified that electronic data’ specifically refers to stored data, not actively communicated data. States differentiate electronic data from subscriber, traffic, and content data related to network communications. This definition is based on the Budapest Convention’s terminology for computer data, allowing for a wider interpretation of the types of data involved. She also emphasised that the UN Convention establishes a high standard for human rights protections, affirming their applicability and stating that it should not be interpreted to suppress rights. It includes provisions for protecting personal data during international transfers and reinforcing commitment to human rights in electronic data contexts. However, Briony added that the Convention has some flaws, noting that Australia wishes certain elements had been more thoroughly addressed. Nonetheless, the UN convention is a foundational framework for building trust among states to combat cybercrime effectively while balancing human rights commitments.

Technology transfer: What are the main takeaways from the convention to facilitate capacity building?

Andrew highlighted that technical assistance and capacity development are fundamental to effectively implementing this convention. The UN Cybercrime Treaty lays a robust foundation for technical assistance and capacity development, offering practical mechanisms such as MOUs, personnel exchanges, and collaborative events to strengthen countries’ capacities in their fight against cybercrime. The convention’s technical assistance chapter encourages parties to enter multilateral or bilateral agreements to implement relevant provisions. These MOUs, in particular, can facilitate the development of the capacities of law enforcement agencies, judges, and prosecutors, ensuring that cybercrime is prosecuted effectively.

Implementation and additional protocols: Which mechanisms does the draft convention include for keeping up to date with the pace of technological developments?

Irene clarified that, although the UN Convention has been adopted at the AHC, some topics need further discussion among member states. Due to time constraints, these discussions were postponed, including which crimes should be included in the criminalisation chapter. Some states, like Switzerland, prefer a focused list of cyber-dependent crimes, while others advocate for a broader inclusion of both cyber-dependent and cyber-enabled crimes. Irene noted that resource considerations influence Switzerland’s perspective, emphasising the need to focus on ratification and implementation rather than dividing resources with a supplementary protocol. While a supplementary protocol will need discussion in the future, there is still time to determine its content or negotiation topics.

Irene emphasised that the convention uses technology-neutral language to keep the text up-to-date with technological developments, allowing it to focus on behaviour rather than specific technologies, similar to the successful Budapest Convention. Adopted in 2001, the Budapest Convention has remained relevant for over two decades, and we hope for the same with the UN Convention. Additionally, the convention allows for future amendments; once in force and the Conference of States Parties is established, member states can address any coverage inadequacies and consider amendments five years after implementation.

Ambassador Asoke Mukerji, India’s former ambassador to the United Nations in New York, who chaired India’s national multiple-stakeholder group on recommending cyber norms for India in 2018, noted that, despite initial scepticism about the feasibility of such a framework, the current momentum demonstrates that, with trust and commitment, it is possible to establish international agreements addressing cybercrime. He also praised the effectiveness of multistakeholder participation in addressing the evolving challenges in cyberspace. However, Ambassador Mukerji cautioned about challenges regarding technology transfer, referring to recent statements at the UN General Assembly that could restrict such efforts. He expressed hope that developing countries would receive the necessary flexibility to negotiate favourable terms.

‘The negotiations took place against a very difficult global environment, and our participation from India proved to be useful. It demonstrated that countries, committed to a functional multilateral system, can benefit from it, impacting our objectives of international cooperation. Additionally, the process highlighted the effectiveness of multistakeholder participation in cyberspace. The convention and its negotiation process validate our choice to use this model to address the new challenges facing multilateralism.’

Ambassador Asoke Mukerji, India’s former ambassador to the United Nations in New York

Concluding remarks

The panellists unanimously highlighted the indispensable role of human rights standards, emphasising that any practical international cooperation against cybercrime must prioritise these principles. Briony also pointed out that the increasingly complex cyber threat landscape demands a collective response to enhance cybersecurity resilience and capabilities. The treaty’s significant achievements, including protections against child exploitation and the non-consensual dissemination of intimate images, reflect a commitment to safeguarding both victims’ and offenders’ rights. Catalina highlighted that certain types of crimes, such as gender-based violence, were also included in the text, and this is another significant achievement.

All experts also agreed that the active involvement of civil society, NGOs, and the private sector is vital for ensuring that diverse expertise contributes meaningfully to the ratification and implementation processes. Public-private partnerships were specifically mentioned as essential for fostering collaboration in cybercrime prevention. Ultimately, the success of the Convention lies not only in its provisions but also in the collaborative spirit that must underpin its implementation. By working together, stakeholders can create a safer and more secure cyberspace for all.

We at Diplo invite you all to re-watch the online expert discussion and engage in a broader conversation about the impacts of this negotiation process. In the meantime, stay tuned! We’ll further provide updates and analysis on the UN cybercrime convention and relevant processes.