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North Korea Accused of Laundering $147.5M in Crypto via Tornado Cash

North Korea has been accused of laundering a staggering $147.5 million in cryptocurrency through Tornado Cash, a popular Ethereum-based privacy protocol. The accusation sheds light on the potential misuse of privacy-enhancing technologies by rogue actors to evade sanctions and fund illicit activities.

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North Korea has been accused of laundering a staggering $147.5 million in cryptocurrency through Tornado Cash, a popular Ethereum-based privacy protocol. The accusation sheds light on the potential misuse of privacy-enhancing technologies by rogue actors to evade sanctions and fund illicit activities.

According to reports, a United Nations (UN) panel of experts has accused North Korea of utilizing Tornado Cash to obscure the origin and destination of illicitly obtained funds, making it challenging for authorities to trace and interdict the flow of funds. The $147.5 million allegedly laundered through Tornado Cash represents a significant sum and underscores the scale of illicit financial activities facilitated by cryptocurrencies.

Tornado Cash, known for its privacy-enhancing features that allow users to send and receive Ethereum transactions anonymously, has faced scrutiny from regulators and law enforcement agencies for its potential use in money laundering and other illicit activities. The accusation against North Korea highlights the challenges posed by privacy-focused cryptocurrency projects and their potential misuse by malicious actors.

The UN panel’s findings underscore the importance of robust regulatory oversight and international cooperation in combating illicit financial activities in the cryptocurrency space. Efforts to address the misuse of privacy-enhancing technologies like Tornado Cash require coordinated action from governments, regulators, and industry stakeholders to protect the integrity of the financial system and prevent the funding of illicit activities.

The accusation against North Korea also raises questions about the effectiveness of sanctions enforcement in the digital age. With rogue states and illicit actors increasingly turning to cryptocurrencies to evade sanctions and finance their activities, policymakers and regulators face the challenge of adapting to new technologies and closing regulatory loopholes to prevent abuse.

As the cryptocurrency industry continues to evolve, efforts to combat money laundering and illicit financial activities remain a top priority for regulators and law enforcement agencies worldwide. While privacy-enhancing technologies like Tornado Cash offer legitimate benefits for users seeking financial privacy, their potential misuse underscores the need for responsible development and regulatory compliance to ensure the integrity and security of the financial system.

In summary, the accusation against North Korea of laundering $147.5 million in cryptocurrency through Tornado Cash highlights the challenges posed by privacy-focused cryptocurrency projects and their potential misuse by rogue actors. The revelation underscores the importance of robust regulatory oversight and international cooperation in combating illicit financial activities in the cryptocurrency space.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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