CryptoSecurity

Crypto exchange Coinbase is urging the U.S. Department of the Treasury to overhaul decades-old Anti–Money Laundering (AML) rules and the Bank Secrecy Act, calling them “broken relics of the paper era” that fail to meet the realities of today’s digital economy.
The company is advocating for a new approach built on artificial intelligence (AI), decentralized identifiers (DID), blockchain analytics, and zero-knowledge proofs (ZKPs) — technologies that could dramatically improve both financial security and regulatory efficiency.

Coinbase: “The Bank Secrecy Act is broken”
In a formal letter to the Treasury, Coinbase argued that current AML rules are inefficient, privacy-invasive, and economically burdensome, particularly for fintech startups and smaller financial institutions.
“When bad actors innovate, good actors must innovate too,”

said Paul Grewal, Coinbase’s Chief Legal Officer.
The company called for the introduction of “safe harbor” frameworks that would let responsible firms test emerging technologies — such as AI or blockchain tools — without fear of penalties, provided they operate under transparent and auditable conditions.

From Paper to Code: AI, APIs, and Zero-Knowledge Proofs
Coinbase’s proposal includes a shift toward digital-first compliance systems that would:

🔹 Use AI to detect fraud and suspicious activity in real time

🔹 Adopt API-based data standards for interoperability and secure identity verification

🔹 Recognize decentralized identifiers (DIDs) as valid alternatives to traditional KYC

🔹 Leverage Zero-Knowledge Proofs (ZKPs) to verify user identities without exposing private data
Currently, Americans must complete a new KYC process for every financial account, sharing sensitive data with dozens of entities that store it for years — effectively creating “honey pots for hackers.”

Rising costs and outdated systems stifle innovation
Coinbase noted that U.S. financial institutions file over 25 million Suspicious Activity Reports (SARs) annually, yet the vast majority lead to no enforcement action.
The exchange also warned that compliance costs create massive barriers to entry for fintech startups and drive up banking fees for everyday consumers — especially those with lower incomes.

Experts: Compliance must evolve, not stagnate
According to Federico Fabiano, Head of Legal and Compliance at Hex Trust, the era of “checkbox compliance” is over:
“We must collectively drive the integration of transformative tools like AI — powered by blockchain’s immutability — to push AML beyond static, low-value data.”
Fabiano described this shift not as a threat, but as “an opportunity to build a trustworthy and interoperable financial ecosystem.”

Privacy advocates warn against a surveillance state
Crypto policy group Coin Center also weighed in, warning that applying traditional AML frameworks to public stablecoins could create a “CBDC-style panopticon” — a financial surveillance system incompatible with privacy rights.

What’s next
The Treasury is now collecting public feedback and will submit a report to Congress, shaping the next phase of U.S. crypto regulation.

If Coinbase’s recommendations are adopted, the U.S. could launch the first “AML 2.0” framework — a fusion of AI, blockchain transparency, and zero-knowledge privacy that redefines compliance for the digital era.

At the time of writing, Coinbase emphasized that its goal is not to weaken oversight but to modernize regulation to keep pace with the innovation speed of 21st-century finance.


#coinbase , #AI , #blockchain , #CryptoSecurity , #CryptoNews

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Platforms like Binance and the broader DeFi space move trillions of assets across blockchains every year, creating huge opportunities — but also increasing risks. From money laundering to wallet hacks, scams, and sanctions evasion, the pressure to stay compliant and secure is higher than ever.
This is where two complementary solutions come into play: StarCompliance and AMLofficer. Used together, they create a full cycle of protection that covers both prevention and recovery.
Why Binance Users Need More Than Basic Security
Decentralized finance and P2P trading on Binance offer unmatched access — borderless payments, yield farming, and around-the-clock liquidity. But blockchain’s open design also makes it easier for scammers and bad actors to move funds undetected.
Everyday traders risk sending funds to unsafe wallets.Businesses risk exposure to illicit funds that could trigger penalties.Institutions risk falling behind fast-changing regulatory demands.
To manage these risks, Binance users need more than just a secure platform. They need tools that help them spot risks early and, if the worst happens, recover losses effectively.
What AMLofficer Brings: Proactive Monitoring
AMLofficer is built for real-time anti-money laundering (AML) checks. Available through both a Telegram bot and a web version, it allows users to register personally via promo code in Telegram bot or sign up directly on the website, including options for business accounts. This way, AMLofficer puts compliance directly in the hands of both companies and everyday Binance users.
Key strengths include:
Wallet risk scoring: Quickly see if a wallet is linked to suspicious activity using multiple AML providers.Transaction monitoring: Track deposits and withdrawals across major blockchains like Bitcoin, Ethereum, BSC, Solana, Litecoin and TRON.Instant alerts: Get notified when risk levels rise, helping users make safer trading decisions.Accessible design: Simple setup, available on mobile, usable by compliance teams and retail traders alike.
In short, AMLofficer helps stop problems before they start by giving visibility into counterparties and transactions.
What StarCompliance Brings: Recovery and Investigation
Even with proactive monitoring tools, risks can’t be completely avoided. Hacks, scams, and theft continue to cost both users and businesses billions each year. This is where StarCompliance plays a vital role.
As a “Crypto Recovery as a Service” (CRAAS) platform, starcompliance.io not only investigates fraud cases and traces stolen funds across multiple blockchains but also works closely with stablecoin issuers to freeze and block fraudulent or stolen money directly on wallets. With a fully operational method for fund recovery, StarCompliance has proven results that set it apart: $500M in volume traced in 2025, $35M recovered and locked, and over 100 successful recovery cases.
Their services include:
Fraud investigation and stolen fund tracing across chains.Forensic blockchain analysis to track how illicit assets move.Partnerships with regulators, legal entities, and stablecoin issuers to maximize recovery chances.AML aggregation to shield businesses from exposure to tainted funds.
For Binance users, this translates into practical security: if a wallet is ever compromised or a transaction goes wrong, there is a clear pathway toward investigation and potential recovery of assets.
The Synergy: Prevention + Recovery
The synergy between AMLofficer and StarCompliance creates a stronger safety net than either platform can provide on its own.
Before a transfer, AMLofficer can check the wallet and warn users about potential risks.
While activity is ongoing, it continues monitoring transactions in real time and highlights suspicious behavior across different blockchains.
If fraud or theft still occurs, StarCompliance takes over with detailed investigation and recovery services.
For businesses, this combination delivers a complete compliance cycle that spans both monitoring and enforcement. For Binance users, it offers reassurance: they can screen wallets before sending funds and rely on expert support if problems arise.
Tangible Benefits for Binance Users and Businesses
The combination of starcompliance.io and AMLofficer delivers:
Safer P2P trades on Binance through proactive wallet scanning.Reduced risk of sanctions exposure with AML monitoring built into daily activity.Faster audits and compliance checks for institutions.A recovery pathway if assets are stolen or lost to fraud.
As crypto adoption accelerates toward trillions in yearly flows, this dual-layer approach — monitoring + recovery — is essential for sustainable growth.
Get Started
Explore starcompliance.io to learn how their investigation and recovery services can protect your assets.Try amlofficer.org for instant wallet monitoring and AML checks you can set up in minutes.
Together, these tools provide enterprise-level compliance and retail-level accessibility — a powerful combination for Binance users, crypto businesses, and anyone serious about wallet security and AML protection.
#crypto #security #CryptoSecurity #StablecoinLaw #aml

A shocking revelation has emerged in a Manhattan federal court. A former employee of the crypto trading firm 18decimal testified that two MIT-educated brothers — Anton and James Peraire-Bueno — allegedly spent months planning an elaborate Ethereum blockchain exploit that netted them $25 million in just 12 seconds.
According to testimony, the operation — internally code-named “Omakase” — was designed to exploit a flaw in Ethereum’s MEV-Boost software, turning the tables on “sandwich bots”, automated trading algorithms that profit from price slippage between transactions.

Operation Omakase: The 12-Second Crypto Heist
Witness Travis Chen, a former quantitative trader who worked with the brothers, described to jurors how the plan unfolded.

He said that as early as December 2022, the brothers had outlined a method to manipulate Ethereum’s transaction sequencing system to reorder blocks for their own gain.
“It was an operation designed to profit at the expense of sandwich bots,” Chen testified.

“Everything was timed down to the second — 12 seconds that decided a $25 million outcome.”
Chen admitted to profiting $2.4 million from the scheme — a sum he agreed to forfeit under a non-prosecution deal with authorities.

Months of Preparation, Bait Transactions, and a 12-Second Strike
According to Chen, the brothers spent months analyzing trading patterns of automated bots before crafting eight “bait” transactions meant to lure them into a trap.

When the bots engaged, the brothers allegedly exploited a vulnerability in MEV-Boost that allowed them to preview and reorder pending blocks before they were finalized — giving them an enormous, unfair advantage.
By April 2, 2023, the plan was executed — and $25 million in crypto had been drained.
Meeting notes shown to the jury revealed how meticulously the operation was planned:
“The scale of the operation is huge… $6 million per batch. If we catch them all at once, the payout could be much higher.”

Prosecutors: “They Googled How to Launder Crypto”
Federal prosecutors claim the brothers knew exactly what they were doing.

Among the evidence presented were Google searches for:
“How to launder cryptocurrency”

“Top crypto lawyers in the U.S.”
Defense attorneys, however, argued that these searches were made during legitimate legal consultations and should not be considered evidence of intent.
Both brothers face charges of wire fraud and money laundering, each carrying a potential 20-year prison sentence if convicted.

Flashbots Fixed the Exploit Within 24 Hours
The company behind the MEV-Boost software, Flashbots, responded quickly.

Developer Robert Miller testified that the vulnerability was patched within 24 hours of the incident.
Miller also revealed that the alleged perpetrators later contacted him anonymously, offering to share technical details of their exploit if he agreed not to call it a “hack.”
“They said they’d explain how it worked — as long as we didn’t label it an exploit,” Miller told the court.

Defense: “They Didn’t Know It Was Illegal”
The defense claims the brothers believed their actions were a form of ethical hacking, not a crime.

They argue that blockchain law remains largely undefined, and that no clear line existed between legal arbitrage and illegal manipulation.
In a letter to the court, defense lawyers said that any remorse shown after the indictment is irrelevant to what the brothers knew or believed at the time of the incident.

A Landmark Case for Crypto Law
This case is shaping up to be one of the most significant crypto trials in history, testing the boundary between decentralized innovation and financial crime.
If convicted, the brothers’ actions could set a precedent defining what constitutes “permissible blockchain manipulation” — and what becomes known as the cyber heist of the century.


#cybercrime , #Cryptoscam , #CryptoSecurity , #CryptoNews , #crypto

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“