Recent events in the crypto world include the arrest of a co-founder of the Telegram project Blum and the dismantling of a money laundering scheme in Hong Kong.
Vladimir Smerkis Arrest
Vladimir Smerkis, co-founder of Blum, was arrested in Moscow on suspicion of large-scale fraud. The Zamoskvoretsky District Court approved his detention as investigations continue. The charges fall under Article 159 of the Russian Criminal Code, which could result in a prison sentence of 2 to 12 years. Previous ventures, The Token Fund and Tokenbox, are reportedly linked to investor losses of around $15 million. However, Blum stated that Smerkis is no longer involved and that operations continue as planned.
Crypto Laundering Operation in Hong Kong
In Hong Kong, police have dismantled a major money laundering operation involving cryptocurrencies, which led to the arrest of 12 individuals and the seizure of over $1 million in cash. The criminal network was allegedly recruiting individuals to open bank accounts used to collect illicit funds. This incident occurs amid a rise in fraud-related crimes in Hong Kong.
Roman Storm Fights Federal Charges
In the U.S., attorneys for Tornado Cash developer Roman Storm have filed a motion urging the court to reconsider its previous decision not to dismiss the case against him. The motion claims that the prosecution withheld crucial evidence from FinCEN regarding whether non-custodial crypto mixers are classified as 'money transmitting businesses.' This has raised significant questions about the government's regulatory approach.
These incidents highlight the complex realities faced by the cryptocurrency industry, including legal challenges and regulatory scrutiny in a rapidly evolving sector.
