The founder of Hydra, a notorious darknet marketplace and crypto mixing service has been sentenced to life in prison by a Russian court. Stanislav Moiseev and 15 accomplices were convicted of running a criminal network that handled over $5 billion in cryptocurrency transactions, while also producing and selling illegal drugs and psychotropic substances. Moiseev was also fined $38,100, with additional fines imposed on his accomplices.
Hydra, which was dismantled in 2022 by German authorities, accounted for 80% of all darknet-related cryptocurrency transactions at its peak. It sold stolen credit card data, counterfeit currencies, and fake identity documents. Despite its shutdown, Hydra’s criminal operations left a significant mark, with its user base reportedly including 17 million customers and 19,000 vendors.
The sentences include prison terms ranging from eight to 23 years for Moiseev’s accomplices, alongside the seizure of properties, vehicles, and nearly a ton of drugs. Russian officials have been investigating Hydra since 2016, but the convictions are subject to appeal.
Safe, the multsignature wallet and digital assets platform, has announced plans to launch a blockchain transaction processor network in 2025. Named Safenet, the network aims to provide instant cross-chain payments, eliminating the delays often experienced during blockchain transactions. Inspired by VisaNet, the network will act as a connecting layer for existing blockchains, allowing users to interact with multiple networks through a single account.
Safenet, which will be powered by processors, is designed to offer a seamless experience similar to traditional payment networks, where transactions are processed instantly. The system will also integrate fraud checks, compliance measures, and security protocols to ensure safe transactions. Initially, Safenet will support cross-chain accounts and liquidity functions, with plans to expand its services in the future.
The open system of Safenet allows more processors to join, offering additional services like security, compliance, and automation. Validators will earn rewards by validating transactions and staking in the ecosystem. Schor also mentioned that the platform could offer users the ability to access assets with partial collateral, similar to how traditional banks manage mortgages.
The Safenet network is expected to go live in 2025, with an alpha version set for the first quarter. A validator network is planned for the second quarter, and the full protocol will be launched later in the year, bringing new opportunities to the crypto space.
Two things often come to mind when we hear the word ‘crypto’: freedom and crime. Cryptocurrencies for sure have revolutionised the financial world, offering speed, transparency, and accessibility not seen before. Yet, their promise of financial liberation comes with unintended consequences. The decentralised, pseudonymous nature of crypto makes it a double-edged sword—for some it represents freedom and for others a tool for crime.
In 2023, illicit transactions involving cryptocurrencies reached USD 24.2 billion, according to TRM Labs, with scams and fraud accounting for nearly a third of the total.
These numbers reveal a sobering truth: while crypto has opened doors to innovation, it has also become an enabler for global crime networks, from drug and human trafficking to large-scale ransomware operations. Criminals exploit this space to mask their identities, making crypto the go-to medium for those operating in the shadows.
What are the common types of crypto fraud?
Crypto fraud takes many forms, each designed to exploit vulnerabilities and prey on the unsuspecting. The most known ones are:
Ponzi and pyramid schemes– Fraudsters lure victims with promises of guaranteed high returns. These schemes use investments from new participants to pay earlier ones, creating an unsustainable cycle. When the influx of new investors dwindles, the scheme collapses, leaving most participants with nothing. In 2023, these scams contributed significantly to the USD 24.2 billion received by illicit crypto addresses, showcasing their pervasive nature.
Phishing attacks– Fake websites, emails, and messages designed to mimic legitimate services trick victims into revealing sensitive information like wallet keys. A single successful phishing attack can drain entire crypto wallets, with victims often having no recourse. The shift to stablecoins, noted for their volume in scams, has intensified the use of such tactics.
Initial Coin Offering (ICO) scams– The ICO boom has introduced countless opportunities—and risks. Fraudulent projects draw in investors with flashy whitepapers and grand promises, only to vanish with millions. For instance, ICO scams contributed to a notable chunk of crypto crimes in previous years, as highlighted by TRM Labs.
Rug pulls– Developers create hyped tokens, inflate their value, and abruptly withdraw liquidity, leaving investors holding worthless assets. In 2023, such schemes became increasingly sophisticated, targeting decentralised exchanges to exploit inexperienced investors.
Cryptojacking– Hackers infect computers or networks with malware to mine cryptocurrency without the owner’s knowledge. This hidden crime drains energy and resources, often leaving victims to discover their losses long after the attack.
Fake exchanges and wallets– Fraudulent platforms mimic legitimate services, enticing users to deposit funds, only for them to disappear. These scams exploit the trust gap among new investors, further driving crypto-related crime statistics.
The connection between crypto fraud and money laundering
Crypto fraud and money laundering are two sides of the same coin. Stolen funds need to be legitimised, and criminals have devised a range of techniques to obscure their origins. One of the most common methods involves crypto mixers and tumblers. These services blend cryptocurrencies from various sources, making it nearly impossible to trace individual transactions.
The process often works as follows:
Initial theft: Stolen funds are moved from wallets linked to scams or hacks.
Mixing: These funds are transferred to a mixing service, where they are broken into smaller amounts and shuffled with others.
Redistribution: The mixed funds are sent to new, seemingly unrelated wallets.
Conversion: The laundered crypto is then converted to stablecoins or fiat currency, often through decentralised exchanges or peer-to-peer transactions, masking its origins.
This method has made crypto a preferred tool for laundering money linked to drug cartels and even human trafficking networks. The convenience and pseudonymity of crypto ensure its growing role in these illicit industries.
How big crypto crime really is?
The numbers are staggering. Last year (2023), illicit addresses received USD 24.2 billion in funds. While scamming and hacking revenues declined (29.2% and 54.3%, respectively), ransomware attacks and darknet market activity saw significant growth. Sanctions-related transactions alone accounted for USD 14.9 billion, driven by entities operating in restricted jurisdictions.
Bitcoin and Monero remain the most-used cryptocurrency for darknet sales and ransomware.
Cryptocurrencies have become the currency of choice for underground networks and darknet markets facilitate the sale of illicit goods. Human trafficking networks use crypto for cross-border payments, exploiting its decentralised nature to evade detection.
According to the Chainalysis report, the prevalence of crypto in these crimes highlights the urgent need for better monitoring and regulation.
Stablecoins like USDT are gaining traction- criminals prefer stablecoins for their reliability as they mimic traditional fiat currencies, enabling transactions in environments where access to traditional banking is limited.
How to fight crypto crime?
Solving the issue of crypto crime requires a multi-faceted approach:
Regulatory innovation: Governments must create adaptable frameworks to address the evolving crypto landscape while encouraging legitimate use.
Public awareness: Educating users about common scams and best practices can reduce vulnerabilities at the grassroots level.
Global cooperation: International collaboration is essential as cryptocurrencies knows no borders. Only by sharing data and strategies can nations effectively combat cross-border crypto crime.
The thing is cryptocurrency is a young and rapidly evolving space. While some countries have enacted comprehensive legislation, others lag behind. However, the pace of innovation makes it nearly impossible to create foolproof regulations. Every new development introduces potential loopholes, requiring legislators to remain agile and informed.
The power of crypto: innovation or exploitation?
Cryptocurrencies hold immense power, offering unparalleled financial empowerment and innovation. As it usually happens, with great power comes great responsibility. Freedom must be balanced with accountability to ensure it serves civilisation for the greater good. Shockingly, stolen crypto assets are currently circulating undetected within global financial systems, intertwining with legitimate transactions. The question is: can the industry mitigate risks without compromising its core principles of decentralisation and transparency by addressing vulnerabilities and implementing robust safeguards? The true potential of crypto lies in its ability to reshape economies, empower the unbanked, and foster global financial inclusion. Yet, this power can also be exploited if left unchecked, becoming a tool for crime in the wrong hands. The future of crypto depends on ensuring it remains a beacon of innovation and empowerment, harnessed responsibly to create a safer, more equitable financial ecosystem for all.
Recent viral tweets have falsely claimed that the Indian government is supporting Pi Coin, citing an article from the Ministry of Ayush’s website. The article, however, was posted on a user-generated content (UGC) platform, not by government officials. The Ministry of Ayush, responsible for traditional medicine, has no official connection to Pi Coin, and the article was simply part of content posted by users to build links.
Despite its appearance on a government site, the article does not represent the views or support of the Ministry of Ayush or any other Indian government body. These misleading claims were likely spread by Pi Coin promotional accounts.
Users must verify the sources of information they come across, especially on social media, where misinformation can spread quickly. The Ministry of Ayush has no involvement in promoting Pi Coin, and the article in question was not authored by government officials.
In conclusion, claims that the Indian government is backing Pi Coin are false, and users should be cautious of such misleading content circulating online.
Ripple’s XRP has surged in price, overtaking Solana and Tether to become the third-largest cryptocurrency by market capitalisation, now valued at $138 billion. On 2 December, XRP saw a remarkable 30% increase in just 24 hours, with its price hitting $2.5. Currently trading around $2.41, XRP has risen by over 370% since 1 November.
The price spike follows the news that the New York Department of Financial Services (NYDFS) is close to approving Ripple’s stablecoin, RLUSD. It could pave the way for Ripple to enter New York’s strict digital finance market, boosting its influence in the crypto ecosystem and positioning it against leading stablecoins like Tether (USDT) and Circle’s USDC.
Additionally, XRP’s rise may also be linked to the upcoming departure of Securities and Exchange Commission (SEC) Chairman Gary Gensler in January, which could have implications for the crypto market. As XRP gains traction, several firms, including 21Shares and Bitwise, are seeking approval for XRP exchange-traded funds (ETFs), adding to the growing attention surrounding the asset.
The European Central Bank (ECB) has released its second progress report on the development of the digital euro, marking the halfway point of the preparatory phase. The report addresses key issues such as holding limits for the central bank digital currency (CBDC) and the harmonisation of laws to ensure universal standards. The Rulebook Development Group is leading efforts with seven workstreams involving market participants and central banks.
User preferences on holding limits are being studied, with a potential solution being a ‘reverse waterfall’ system that transfers excess digital euros to fiat in linked accounts. Offline transaction solutions are also under consideration, although specific details remain limited. Meanwhile, discussions continue over competition between European and non-European financial service providers, as well as the development of technical services such as wallets.
The ECB aims to improve user experience, offering cash-like privacy for those prioritising discretion. ECB executive board member Piero Cipollone previously assured that the digital euro would provide greater privacy than current commercial options. A final decision on the digital euro’s launch is expected in October 2025, with the next progress report due in mid-2025.
Michael Saylor, Executive Chairman of MicroStrategy, urged Microsoft to adopt Bitcoin as a strategic reserve during a presentation to the company’s board on 1 December. He emphasised Bitcoin’s potential to become the world’s leading asset within 20 years, surpassing gold and art with a projected global wealth share of $280 trillion. Highlighting Bitcoin’s rapid growth, Saylor noted its annual performance has outpaced Microsoft shares by 12 times, with MicroStrategy shares soaring over 3,000% since embracing Bitcoin.
In his pitch, Saylor framed Bitcoin as a vital asset for Microsoft’s future, claiming it could reduce investor risk while driving share prices to $584 and maximising market capitalisation to nearly $5 trillion. He contrasted Bitcoin’s benefits with traditional financial strategies, urging the board to innovate by adopting the cryptocurrency.
Saylor also introduced Bitcoin24, a product designed to integrate Bitcoin into corporate strategies. He argued that this approach could lower Microsoft’s share risk from 95% to 59% and increase annual recurring revenue from 10.4% to 15.8%. As political and market support for Bitcoin grows, Saylor asserted that Microsoft’s adoption of Bitcoin would secure its position in the digital future.
The Russian Central Bank claims it is making significant progress in tackling peer-to-peer cryptocurrency exchanges. According to a recent financial stability review, the regulator states that high-risk transactions have dropped by 2.8 times compared to 2023. Efforts to combat illegal crypto circulation have involved close collaboration with commercial banks, leading to numerous blocked transfers tied to P2P platforms.
The Russian crypto market remains unregulated and fragmented despite tighter measures, with underground exchanges using fictitious accounts for settlements. While the Central Bank reports a 16 per cent decrease in Russians’ estimated crypto wallet balances since March, the overall volume of crypto transactions involving Russian investors has risen by 18 per cent in 2024.
The bank noted increased interest in global crypto platforms, with web traffic from Russian IPs soaring by over 56 per cent this year. Bitcoin remains the dominant choice for Russian holders, accounting for 69 per cent of wallet balances. Despite regulatory pressure, Russian traders continue to anticipate long-term growth in cryptocurrency values, driven by policy shifts in the US and trends like meme coins.
DMM Bitcoin, a Japanese cryptocurrency exchange, is preparing to wind down its operations after suffering a significant loss of $320 million in Bitcoin due to a hack in May. The breach, which compromised a private key linked to a wallet holding over 4,500 Bitcoin, forced the company to halt its restructuring efforts and focus on safeguarding customer assets. In response, DMM Bitcoin has arranged to transfer all customer accounts and assets to SBI VC Trade, a crypto exchange operated by financial giant SBI Group, with the transition expected to be completed by March 2025.
The company confirmed that customer assets, including Japanese yen and cryptocurrencies, will be secure during the move. Despite initial assurances that customer deposits would be protected, DMM Bitcoin was forced to suspend withdrawals, new account registrations, and trading following the attack. The company also pledged to compensate affected users by procuring an equivalent amount of Bitcoin, backed by its group companies.
The hack is one of Japan’s largest crypto breaches, second only to the $530 million Coincheck hack in 2018. Blockchain analysts have linked the breach to the Lazarus Group, a North Korean cybercrime organisation, suggesting similarities in laundering techniques. DMM Bitcoin, which launched in 2018, has also been facing challenges with its Web3 gaming project and stablecoin initiatives, ultimately leading to the decision to wind down its operations.
This attack is part of a broader trend of rising cyberattacks on cryptocurrency exchanges in 2024, including major breaches of other exchanges such as WazirX, BingX, and BtcTurk. The growing frequency of such incidents underscores the ongoing risks facing centralized crypto platforms.
South Korea’s crypto tax implementation has been postponed once again, with lawmakers agreeing to delay its launch until January 2027. The decision comes after extended negotiations between the ruling People’s Power Party (PPP) and the opposition Democratic Party (DP). The DP initially opposed the delay, proposing an alternative plan to raise the tax threshold for crypto traders, but later conceded to the government’s timeline.
DP floor leader Park Chan-dae stated the postponement allows more time for institutional preparations, echoing concerns from party leader Lee Jae-Myung about the current system’s readiness for taxation. The amendment will now move forward for approval in a plenary session. Lawmakers have faced criticism for repeatedly delaying the tax, which was first scheduled to take effect in 2021.
The DP’s focus now shifts to opposing other government tax plans, including changes to dividend income and inheritance tax. Meanwhile, crypto traders in South Korea have expressed frustration, describing the tax situation as chaotic. While many welcome the postponement, some argue that political mishandling has caused unnecessary uncertainty in the industry.
