Interesting the way two different outlets covered the story of the two Iranians indicted by the US Justice Department. The Hill covered the story as a case of ransomware, focusing on the common element that the thieves used TOR to hide their communications both with their victims and their internal network being operated from Iran. The Wall Street Journal covered the same story but with the emphasis on the use of Bitcoin to launder the money into hard currency. The Journal emphasizes these two points:
"Treasury’s action marks the first time the U.S. has used digital-currency addresses to identify sanctioned targets.
It also marks a new step by the U.S. to impose regulatory requirements on digital-currency exchanges that can be used to mask illicit activity."
I think the Journal has the right points here. Treasury reporting of transactions has not gone well with digital currencies, partly because enforcement is harder when the controls are not put on by the currency owners. There is no doubt that blockchain gives them the ability to know to whom, and where the transactions were made, but they aren't using it in the way they are required. It is still the wild west in digital currencies.
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