A recent study by Elliptic exposed a worrying trend prevalent in the world of cryptocurrency. Crafty cybercriminals have allegedly exploited crypto cross-chain bridges and coin swap services, laundering a whopping $7 billion in questionable funds. Alarmingly, it was disclosed that the notorious Lazarus Group, purportedly aided by North Korea, has used these techniques to facilitate $900 million worth of cross-chain crime.
The Rising Trend of Cyber Crime Using Dexs and Cross-Chain Bridges
Between July 2022 and July 2023, cybercrimes involving cross-chain and cross-asset services spiked, leading to the laundering of $7 billion in illegal or high-risk funds. This revelation, made by the esteemed blockchain analytics firm, Elliptic, highlights an unexpected growth in the hefty amounts laundered through these channels. Notably, this value is higher than Elliptic's foresight of $6.5 billion for the same period.
During an announcement on October 5th, Elliptic shared these staggering statistics. Compared to the previous year's data, which stood at $4.1 billion, the recent value of laundried crypto assets through decentralized exchanges, cross-chain bridges, and coin swap services increased significantly. Tom Robinson, the co-founder and lead scientist at Elliptic, elaborated on these findings, stating:
“In the wake of astute insights from our Holistic blockchain analytics features launched last year, we perceive a growing trend of cross-chain crime as malicious actors continue to exploit platforms such as decentralized exchanges (dexs), cross-chain bridges, and coin swap services.”
The Prolific Reach of Sanctioned Entities Cross Diverse Blockchains
Adding to the troubling scenario, Elliptic's statement unmasked the central role of the Lazarus Group in the cross-chain crypto landscape. This cybercriminal organization, allegedly backed by North Korea, has been associated with $900 million worth of cross-chain fraudulence. The statement further disclosed that sanctioned entities now “possess over 80 different assets spread across over 26 blockchains”. In recent times, several hacking incidents, committed allegedly by the Lazarus Group, made headlines in major news outlets, including Bitcoin.com News. A particular incident of note involved the theft of digital assets reportedly worth $200 million.
Elliptic, the established blockchain analytics company, also pointed out an evolving pattern among such cybercriminals, including the infamous Lazarus Group. To avoid detection, these malefactors use sophisticated cross-chain methods to mask fund movements. Authorities anticipate that before cashing out, the funds pass through complex processes, such as derivatives trading and limit orders.
Shedding Light on the Sinister World of Cross-Chain Laundering
These startling revelations from Elliptic underline the intricacies and scale of cross-chain laundering and the associated cybercrimes in the cryptocurrency space. It uncovers innovative yet unlawful tactics exploited by sophisticated criminals to move significant amounts of crypto assets undetected. The challenge now lies in the development of advanced analytics tools for tracking and mitigating such insidious activities. While this is a concerning situation, it also serves as a call-to-action for regulatory bodies to enhance their oversight methods in this fast-paced digital landscape.
Frequently Asked Questions
What is the benefit of a gold IRA?
Many benefits come with a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This will allow you to transition easily if it is your decision to retire early.
The best part about gold IRAs? You don't have to be an expert. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
There are, however, some drawbacks. The volatility of gold has been a hallmark of its history. It is important to understand why you are investing in gold. Do you want safety or growth? Are you trying to find safety or growth? Only after you have this information will you make an informed decision.
If you want to keep your gold IRA open for life, you might consider purchasing more than one ounce. A single ounce isn't enough to cover all of your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even live with just one ounce. These funds won't allow you to purchase anything else.
What are the pros & cons of a Gold IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. An IRA is a great option for those who want to save money, but don't want tax on any interest earned. This type of investment has its downsides.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
Insurance will be required if you would like to keep your cash out of banks. Insurance companies will usually require that you have at least $500,000. You might be required to buy insurance that covers losses up to $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers limit the number of ounces of gold that you can own. Others allow you the freedom to choose your own weight.
You will also have to decide whether to purchase futures or physical gold. Physical gold is more expensive than gold futures contracts. Futures contracts, however, allow for greater flexibility in buying gold. You can set up futures contracts with a fixed expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. It does include coverage for damage due to natural disasters. Additional coverage may be necessary if you reside in high-risk areas.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. In addition, most banks charge around $25-$40 per month for safekeeping.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must retain them for as long and as you require.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. You should also specify how much you want to invest each month.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. After receiving your application, the company will review it and mail you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts at investing and can help you determine which type of IRA is best for you. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What is a Precious Metal IRA, and how can you get one?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers only to the actual metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This allows you to receive dividends every year.
Precious metal IRAs have no paperwork or annual fees. Instead, you pay a small percentage tax on the gains. Additionally, you have access to your funds at no cost whenever you need them.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
External Links
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
irs.gov
How To
Tips to Invest in Gold
Investing in Gold is one of the most popular investment strategies worldwide. This is because there are many benefits if you choose to invest in gold. There are many ways to invest gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
Before buying any type gold, it is important to think about these things.
- First, find out if your country allows gold ownership. If it is, you can move on. If not, you may want to consider purchasing gold from overseas.
- The second is to decide which kind of gold coin it is you want. You have the option of choosing yellow, white, or rose gold.
- Thirdly, it is important to take into account the gold price. It is best to begin small and work your ways up. You should diversify your portfolio when buying gold. You should invest in different assets such as stocks, bonds, real estate, mutual funds, and commodities.
- Don't forget to keep in mind that gold prices often change. Therefore, you have to be aware of current trends.
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By: Terence Zimwara
Title: Unveiling the Intricacies of Illicit Cross-Chain Crypto Laundering
Sourced From: news.bitcoin.com/cybercriminals-use-dexs-and-crypto-cross-chain-services-to-launder-7-billion-elliptic/
Published Date: Tue, 10 Oct 2023 11:30:09 +0000
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