Ari Redbord’s Post

Great reporting by Sheila Chiang for CNBC on TRM Labs' recent report on 2024 hacks. According to the report, hackers more than doubled their cryptocurrency spoils in the first half of 2024 compared with a year ago stealing crypto valued at $1.38 billion between Jan. 1 and June 24, more than double the $657 million during the same period a year ago. Like last year, a handful of large attacks drove the increase in plundered crypto, with the top five hacks accounting for 70% of the amount stolen in the first half of the year. Private key and seed phrase compromises remain a top attack vector in 2024, alongside smart contract exploits and flash loan attacks.  For example, in May, DMM Bitcoin, a Japanese cryptocurrency exchange, suffered the largest attack so far in 2024. It resulted in the theft of over 4,500 BTC, valued at over USD 300 million at the time. While the exact cause of the attack remains unknown, potential vectors include stolen private keys or address poisoning—a tactic wherein attackers send tiny amounts of cryptocurrency to a victim’s wallet to create fake transaction histories, potentially confusing users into sending funds to the wrong address in future transactions. 💡 Some thoughts . . . In 2023 hacks were down considerably from 2022 - with about $750 million stolen in 2023 compared to closer to $900 million in 2022. It is important to note that 2022 remains a record year for hacks in large part due to North Korea's theft of $625 million from the Ronin Bridge which is part of the play to earn game Axie Infinity. So why are we seeing a spike in activity in the first part of 2024? While we have not seen any fundamental changes in the security of the cryptocurrency ecosystem, we have seen a significant increase in the value of various tokens - from bitcoin to ETH and Solana - compared to the same time last year. This essentially means that North Korea and other cybercriminals can steal more value in a single exploit and are more motivated to attack crypto services. The bottom line is that DPRK and other illicit actors are opportunistic and will use any opportunity to steal more funds. Thought it might be helpful to provide an overview of the types of hacks 👇 TRM Labs will continue to provide updates on what we are seeing out there. 📑 Full CNBC piece here: https://lnkd.in/eytcyadd

🔥 I am so excited for this one! Are you kidding me?! 😮 Crypto compliance all-stars ⭐️ Crystal Noe of Kraken Digital Asset Exchange and Sophie Bowler of Zodia Custody join friends and inspiring TRM Labs' colleagues Isabella Chase and Thomas A. for a discussion on the strategies crypto businesses can leverage to detect and stay ahead of common sanctions evasions techniques. You’ll learn: ✅ How to spot five common sanctions evasion techniques and adjust your #cryptocompliance programs accordingly; ✅ How the regulatory landscape is changing for crypto businesses; ✅ The top trends and concerns for sanctions leaders and practitioners; ✅ Key considerations for designing a compliant sanctions program; ✅ The role of #blockchainintelligence in fortifying your sanctions program. This is one of my favorite topics with the best and brightest in our space. Run 🏃♂️ don't walk if you are a regulator (talking to you OFAC friends) or a compliance professional! Save your seat now ➡️ https://hubs.la/Q02FDYT50

🇷🇺 Since the invasion of Ukraine in February 2022, Western countries have imposed a series of severe sanctions on Russian financial institutions. These sanctions, coordinated primarily by the United States, European Union, United Kingdom, Japan, and South Korea aim to cripple Russia's financial system and its ability to fund the war. Last week, Reuters👇 reported that Russia's central bank told businesses they should use use #crypto to facilitate payments with foreign partners such as China, India and the UAE to counter Western sanctions imposed over Russia's war on Ukraine. First a quick recap of key sanctions: 🏦 Sanctions on Major Banks: The United States sanctioned Russia's largest banks, including Sberbank and VTB Bank, which hold a significant portion of Russia’s banking assets. These sanctions effectively cut these banks off from the U.S. financial system and froze their U.S. assets. 💨 SWIFT Ban: Several Russian banks were excluded from the SWIFT international payments system, severely hampering their ability to conduct cross-border transactions. 🥶 Asset Freezes and Prohibitions: The EU, UK, and U.S. imposed asset freezes on the Russian Central Bank and other major financial institutions. 📉 Sanctions on Financial Marketplaces: The U.S. sanctioned the Moscow Exchange, impacting Russia's primary financial marketplace. 🫣 Targeting Sanctions Evasion: Sanctioned entities and individuals involved in sanctions evasion imposed secondary sanctions on foreign financial institutions that do business with sanctioned Russian banks. So, back to last week when Elvira Nabiullina, governor of the central bank, asserted that, "New financial technology creates opportunities for schemes which did not exist before. This is why we softened our stance on the use of cryptocurrencies in international payments, allowing the use of digital assets in such payments," Nabiullina told a financial conference in St.Petersburg. "Different alternatives are being discussed. Businesses have become very flexible, very enterprising. They find ways to solve this and often don’t even share them with us," she said. Nabiullina said Russia’s business partners in various countries were under "tremendous pressure" but said a new global payments system not involving Western institutions would gradually emerge since many countries felt vulnerable using only one international payment system with no alternatives. Nabiullina said Russia and other countries were in discussions over the BRICS Bridge payments system, which would be designed to bridge the financial systems of member countries. This is not the first time Russia has looked to crypto to evade sanctions. In January 2023 it was reported that Russia and Iran were in discussions to use a gold-backed stablecoin for trade and Russia’s finance ministry has, since Russia's invasion of Ukraine, confirmed that Russia is exploring how to use crypto for international payments. What did I miss Isabella Chase?

I promise that this is my last post about Point Zero Forum, but I had an experience I wanted to share. And, it is not about running 😉 I was invited to a breakfast for regulators from across the globe. Australia 🇦🇺 to Singapore 🇸🇬 , Malaysia 🇲🇾 to the UK 🇬🇧, Switzerland 🇨🇭 and Japan 🇯🇵. Every single discussion began in one of two ways - “Oh, you work with Angela Ang,” or “We love engaging with Isabella Chase. You have such a great team.” It was so cool! Every morning, I wake up energized to build a safer financial system. However, by the end of the day, it's the people and the team that make me most proud. That could not have been more evident than in Zurich last week as I watched - and learned from - two master craftspersons adding value to every discussion they were in. Let us know how we can help. #sograteful.

Today, the Republican National Committee adopted a platform that lays out the party's priorities including support of digital assets innovation - a first in American politics. While the press release did not include #crypto among the 20 top policy "promises," digital assets were included in the section on emerging industries. Under the section header "Build the Greatest Economy in History," the platform asserts the need to "Champion Innovation," and writes, "Republicans will pave the way for future Economic Greatness by leading the World in Emerging Industries." Specifically under the header "Crypto," the platform asserts, "Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control." Whatever your politics - or views on a CBDC - the Republican's inclusion of crypto in its platform is an extraordinary first for the growing ecosystem and further proof that every branch of the US federal government is fully engaged in the discussion. I am sure there is more to come on this!

In our latest #TRMTalks I sat down with CoinDesk's policy and regulation lead Nikhilesh De to discuss the regulatory landscape, congressional movement on #crypto, the US election, and even Nik's iconic SBF courtroom sketches! 🎙️ Check out this clip below 👇 and tune in for the full episode here: https://lnkd.in/edy-VZfh

“Where in the 🌎 World is Ari?” I know you think I am going to say Switzerland! 🫕 Off a plane ✈️ last night and on a train 🚆 this morning! Heading to NYC 🗽 for just a few hours with friend and inspiring colleague Patrick S. to meet with clients, partners and friends. Life and work are crazy - but getting to run with special people on a mission to build a safer financial system is the adventure of a lifetime. Tom and Huck are ready to go on this very early Monday morning 😉

🫕 Heading home from Switzerland 🇨🇭 energized by the policy discussions we had at Point Zero Forum, proud that TRM Labs’ Policy was everywhere in Zürich, and filled with … melted cheese! 🧀 Our last meal before heading home was at Restaurant Les Armures, the oldest cafe in Geneva and home to the best fondue I have ever had. The meal had me wondering about the origins of Switzerland’s national dish. 🫕 Fondue, which comes from the French “fondre”, meaning “to melt,” had its origins in 18th century Switzerland as a means for farm families to stretch their limited resources during the winter months. 🧀 With some remaining cheese, some stale bread, and a dash of wine the family could gather around the hearth. In Alpine farm villages bread was baked only occasionally so whatever bread was on hand was usually stale. By dipping the bread in the melted cheese, the bread was softened and became delectable. From these simple beginnings, fondue became a Swiss winter tradition. 🫕 I love inventions that solve problems - from cross border value transfer at the speed of the internet to a genius solution for stale bread 🥖 🧀 Whatever you are building, make sure it solves a problem and sorry if this post was too cheesy 😉

👩⚖��� It has been a busy few weeks for crypto policy and regulation in the US 🇺🇸 Financial Crimes Enforcement Network, US Treasury proposed new AML rules for MSBs - effecting digital assets service providers - and the Internal Revenue Service issued long awaited regs for crypto tax reporting. But perhaps the longer term impact on the crypto space will come from the SCOTUS. Last week, the US Supreme Court overturned the Chevron deference doctrine in the case of Loper Bright Enterprises v. Raimondo. Established in the 1984 case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Chevron deference required courts to defer to a federal agency's interpretation of ambiguous statutes if the interpretation was reasonable. The recent decision limits this deference, emphasizing that courts should independently interpret statutory language without automatically deferring to agency interpretations. The decision represents a seismic shift in administrative law doctrine. 💡 So, what does this mean for crypto? Regulatory agencies like the U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC) will face greater judicial scrutiny when their interpretations of ambiguous statutes are challenged. This means courts will independently review the statutory language, potentially leading to different interpretations and outcomes compared to when Chevron deference was applied. However, with reduced deference to agencies, there may be greater regulatory uncertainty with courts interpreting statutes in various ways, leading to inconsistent regulatory guidance and enforcement. As agencies like the SEC and CFTC navigate this new landscape, they must ensure that their rules and enforcement actions are solidly grounded in statutory authority to maintain regulatory effectiveness and consistency. 🏖️ Figured nothing like a little deep legal beach reading for a summer Sunday #cryptoverse. Full decision here: https://lnkd.in/eyjpba_v

⏰ I think a lot about time. It is the most valuable thing I have. As I walked the streets of Geneva today - the watchmaking capital of world - I was struck about how much time defines who I am. The Swiss watch and clock industry appeared in Geneva in the middle of the 16th century. In 1541, the reformer Jean Calvin, by banning the wearing of ornamental objects, in effect forced goldsmiths and other jewellers to turn to a different art: that of watchmaking. I move fast 💨 Right or wrong, it defines who I am. There is a fast candence to my life and work in which I try to take advantage of every minute. We call it operating at TRM Speed - moving surprisingly fast and responsively. I get why this is not for everyone. But for me, I don’t have to stop and smell the roses 🌹 when I can run 🏃♂️ with them in my hand. As I walk through Geneva today I am more convinced than ever that all I can do is make the most of every moment because, in the end, all we have is time.