As usual, the crypto industry has been a hotbed of crime this week.
Caroline Ellison has started her prison sentence this week and will spend the next two years behind bars.
BlueNoroff, a Lazarus Group spinoff, has released new malware called "Hidden Risk," which is transmitted via PDF files.
A Chinese official has been sentenced to a possible execution for selling state secrets for crypto.
The crypto industry gets rocked to its core by crime every day, and this week is no different.
Here are three of the biggest incidents from this week so far, including updates from Caroline Ellison's case, a new North Korean malware variant, and international crypto espionage.
Here’s a closer look at some of the headline-grabbing cases.
Caroline Ellison, the former CEO of Alameda Research, started her two-year prison sentence on Thursday this week.
She is to spend the next two years at the Federal Correctional Institution in Danbury, Connecticut, for her involvement in the infamous FTX collapse.
Keep in mind that Ellison’s role led to the disappearance of a staggering $8 billion in customer funds.
On Thursday this week, Judge Lewis A. Kaplan, who presided over the sentencing in September, acknowledged her cooperation as a witness.
He credited her for her honesty and handed her a reduced sentence of two years, which she has now begun.
This stands in stark contrast to that of FTX founder Sam Bankman-Fried, who received 25 years.
In addition to this prison sentence, Ellison is required to forfeit $11 billion over charges of money laundering, securities fraud, commodities fraud, and wire fraud.
While her initial charges amounted to a 110-year sentence, her cooperation has earned her only two.
However, as expected, not everyone agrees with the sentence’s leniency.
Ryan Salame, the former CEO of FTX Digital Markets, took to Twitter to express his frustration with the whole ordeal.
Salame, currently serving a one-year sentence, showed frustration at her short sentence compared to his own.
Dissatisfaction with Ellison’s sentencing
Meanwhile, other former FTX executives are also facing their day in court.
Nishad Singh, the former director of engineering at FTX, was sentenced last month to time served and three years of supervised release.
FTX co-founder and CTO Gary Wang, on the other hand, is scheduled for sentencing on 20 November.
In another major case, a North Korean hacker group called BlueNoroff has pumped the gas on crypto companies with a new MacOS malware.
This computer virus is known as “Hidden Risk” and was detailed in a report from SentinelLabs.
This malware spreads via PDF documents.
Said files are spread via phishing attacks, which often contain crypto-related content like news headlines and market research.
Once downloaded, the file immediately goes to work in the background and installs several other malware variants that help the hackers access the victim's computer remotely.
Soon after this, BlueNoroff can easily drain crypto from wallets and do all manner of other things.
BlueNoroff is allegedly a spinoff of the notorious Lazarus group.
The US FBI and CISA have been tracking both for a long time and have been warning crypto firms about their operations.
Since 2016, North Korean hackers have been responsible for more than $3 billion worth of crypto-related thefts.
Far across the world, in China, a major incident happened with the sentencing of Wang Moumou, a public official.
Wang is charged with selling state secrets in exchange for crypto and is facing possible execution for his crimes.
The accused reportedly faced huge losses from his own failed crypto investment venture.
He then turned to seeking part-time work on online forums, a move that ultimately led him to foreign agents who offered to pay him for the sensitive information he provided.
Over time, Wang provided huge state secrets and received more than 1 million yuan (over $137,000) in crypto.
Per reports, Wang has been stripped of his political rights and is facing severe consequences.
Consequences for Chinese Spy
Aside from the sentence, the accused has also been stripped of his political rights.
Wang’s case shows the growing trend of crypto-related espionage attempts from all over the world.
China, in particular, is a major hotspot for this crime.
Another major example from last year was that of another man, coincidentally named Zhang Moumou, who was extradited from Thailand to China for a $14 billion crypto pyramid scheme.
In another incident, Taiwanese authorities found a similar incident where Chinese agents paid eight Taiwanese military personnel crypto for state secrets.
Amidst these cases, the Chinese government has urged citizens to report suspicious activities to prevent further breaches.
While crypto trading remains banned within the country, cases like these show that the return of crypto to China might take a while.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.