ChainCatcher news, according to Cointelegraph, the U.S. Department of the Treasury stated on October 17 that it has recovered $4 billion in "fraud and improper payments" in fiscal year 2024 by using artificial intelligence to sift through data. By adopting artificial intelligence, the amount of fraud recovered by the Treasury has increased nearly fourfold compared to the previous fiscal year, which recovered $652.7 million in fraudulent payments.

ChainCatcher News: The U.S. Department of the Treasury has imposed sanctions on Cambodian businessman Li Yongfa and his companies, accusing them of involvement in human trafficking and forced labor related to cryptocurrency scams. The sanctions freeze Li Yongfa's and his companies' assets in the United States and prohibit U.S. citizens from engaging in related transactions.Li Yongfa and his companies are accused of luring victims to scam centers and forcing workers to participate in cryptocurrency fraud. The Treasury emphasized that this action aims to hold accountable those criminals involved in human rights abuses and fraud. These sanctions are based on Executive Order 13818, which expands the Global Magnitsky Human Rights Accountability Act.

ChainCatcher news, according to Coindesk, the U.S. Department of the Treasury's IRS has released a cryptocurrency trading tax system for 2025, aimed at establishing filing rules for digital asset brokers, but related rules for DeFi and non-custodial wallets have been temporarily shelved. The agency believes that mainstream crypto platforms handling the vast majority of transactions can no longer wait for rules, but other issues require further study, and corresponding rules will be formulated later this year.The newly released tax rules will take effect for trading starting in 2025 and will require brokers to closely monitor the cost basis of customer tokens beginning in 2026. The new rules for cryptocurrency brokers require trading platforms, custodial wallet services, and digital asset exchange platforms to submit disclosures regarding changes in customer assets and earnings. These assets will also include (in very limited circumstances) stablecoins, such as USDT, USDC, and high-value NFTs, although the IRS has explicitly declined to address the long-standing debate over whether tokens should be considered securities or commodities.Under the new regulations, the IRS will not require reporting for most regular stablecoin sales and has set a $600 annual threshold for NFT earnings, which must be reported only if exceeded.

ChainCatcher news, according to CoinDesk, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) recently stated that crypto assets are widely used to support drug trafficking activities in Mexico (illegal fentanyl trafficking), including Bitcoin, Ethereum, Monero, and USDT. U.S. financial companies should be aware of the criminal organizations involved in the production of this dangerous narcotic.

ChainCatcher news, according to The Defiant, the U.S. Department of the Treasury has recently released its first NFT risk assessment report, which examines the tendency for the NFT space to be exploited by illicit actors. The report highlights numerous risks associated with NFTs, including fraud, scams, copyright and trademark infringement, and vulnerabilities to money laundering activities.The report states: "The assessment found that NFTs are highly susceptible to fraud and scams and are easily subject to theft. Additionally, some NFT companies and platforms lack adequate controls to mitigate risks to market integrity and to combat money laundering, terrorist financing, and sanctions evasion. The assessment found that insufficient cybersecurity protections, challenges related to copyright and trademark protections, and the speculation and price volatility of NFTs and NFT platforms may enable criminals to perpetrate fraud and theft related to NFTs and NFT platforms."

ChainCatcher news, according to CoinDesk, the U.S. Department of the Treasury has sanctioned the mixer Sinbad.io, accusing it of facilitating transactions related to North Korean hacker groups. The FBI, the Dutch Financial Intelligence and Investigation Service (FIOD), the Dutch Public Prosecution Service (Openbaar Ministerie), and the Finnish National Bureau of Investigation have also seized Sinbad's website.The Treasury's Office of Foreign Assets Control (OFAC) has designated two Bitcoin addresses and two email addresses associated with Sinbad, prohibiting all Americans and anyone engaging with the global financial system from interacting with these addresses in the future. Data shows that one of the addresses currently holds about 0.35 BTC (worth approximately $13,000), but the total amount of BTC received is slightly over 15 BTC (valued at approximately $570,000 at current prices).The press release states that Sinbad handled funds from the Horizon Bridge and Axie Infinity hacks. It also transferred funds related to "evading sanctions, drug trafficking, and other illegal sales on dark web markets."

ChainCatcher News, the U.S. Department of the Treasury stated in its settlement announcement with Binance that the Financial Crimes Enforcement Network (FinCEN) will impose a $3.4 billion civil penalty on Binance, in addition to a five-year regulatory oversight period, and will require significant compliance commitments, including ensuring that Binance completely exits the U.S. market.The OFAC settlement agreement, in addition to imposing a $968 million fine on Binance, also requires Binance to comply with a series of strict sanctions compliance obligations, including fully cooperating with regulatory agencies overseen by FinCEN. To ensure Binance fulfills the settlement terms (including not providing services to U.S. persons) and to ensure that illegal activities are addressed, the Treasury will retain access to Binance's books, records, and systems for monitoring over the five-year period. Failure to meet these obligations could expose Binance to substantial additional penalties, including a $150 million deferred fine, which FinCEN will impose if Binance fails to comply with the required compliance commitments and regulatory terms.

ChainCatcher news, according to WSJ, the Biden administration has identified international cryptocurrency platforms commonly known as "mixers" as major money laundering centers that pose a threat to national security.The U.S. Treasury has proposed an unprecedented measure using laws typically aimed at foreign banks and foreign jurisdictions, which will require special record-keeping and reporting for any financial transactions involving international mixers. This approach, potentially targeting an entire category of transactions, is a significant regulatory measure aimed at shaping the future of the global financial system.The backdrop of this proposal is the increasing pressure from the U.S. Congress regarding the role of cryptocurrencies in funding militant organizations following the Hamas attack on Israel on October 7.The Financial Crimes Enforcement Network (FinCEN) announced the proposed new regulations on Thursday, which will be open for public comment for 90 days before potentially being adopted. The proposed regulations allow for remedial measures to be taken against the subjects.

ChainCatcher news, Coinbase's Chief Legal Officer Paul Grewal expressed opposition on social media to the U.S. Treasury's proposed cryptocurrency tax reporting regulations, which relate to fairness and innovation in the emerging industry. Paul Grewal stated that the proposed regulations go far beyond Congress's authorization, establishing tax reporting rules equivalent to those of traditional finance, placing digital assets at a disadvantage, and potentially harming the nascent emerging industry. These rules also require reporting of nearly all digital asset transactions, even the purchase of a cup of coffee, setting a dangerous precedent for monitoring consumers' daily financial activities. Collecting such data has no legitimate public purpose and could impose a heavy burden on Web3 startups, exceeding the data analysis capabilities of the IRS.

ChainCatcher news, according to The Wall Street Journal, to address the issue of tax evasion by cryptocurrency investors, the U.S. Treasury Department has proposed new tax regulations. These regulations aim to simplify complex tax issues and ensure that cryptocurrency investors comply with tax laws. According to the proposal, by 2026, cryptocurrency trading platforms such as Coinbase will be required to submit Form 1099s to the IRS, reporting the total income from transactions.In addition, trading platforms will later begin reporting the cost basis of assets purchased by customers. The purpose of these new regulations is to increase tax transparency and ensure that investors report their taxes correctly. Furthermore, these regulations will also apply to non-fungible tokens (NFTs) and decentralized finance platforms.

ChainCatcher news, the Algorand Foundation has appointed Anil Kakani as the Country Head for India. Kakani will lead the AlgoBharat team and all of Algorand's programming and projects in India, including university education programs, community projects, and private and public partnerships.It is reported that Kakani has previously held multiple positions in the public and private sectors in Washington, D.C., including serving as a Senior Advisor for India at the U.S. Department of the Treasury, where he established the first bilateral partnership between the U.S. Treasury and the Indian Ministry of Finance. He also served as the Director of Business Development for Corning in India and held senior leadership positions at Anand Rathi Investment Banking in India and Vikasa Holdings in the U.S. (source link)

ChainCatcher news, the cryptocurrency exchange Kraken will pay over $360,000 as part of a settlement with the U.S. Department of the Treasury, and will additionally invest $100,000 to improve its compliance tools. The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury stated that Kraken processed over 800 transactions from users seemingly located in Iran between 2015 and 2019, valued at approximately $1.68 million.ChainCatcher previously reported that Kraken is under investigation by the U.S. federal authorities for allegedly violating U.S. sanctions by allowing users from Iran and elsewhere to buy and sell digital tokens. (Decrypt)

ChainCatcher news, according to CoinDesk, the U.S. Treasury is "redesignating" Tornado Cash as a sanctioned entity, accusing North Korea of laundering over $100 million in cryptocurrency through Tornado Cash to support its weapons of mass destruction programs, including the development of ballistic missiles. Additionally, OFAC stated that Tornado Cash is defined as an entity under the executive order governing sanctions.Earlier in August, the U.S. Treasury first listed Tornado.Cash on the sanctions list. (Source link)