FDIC Vice Chair Calls for Clarity in Crypto Banking Amid Industry Criticism

FDIC Vice Chair Travis Hill advocated for clearer guidance on banks’ involvement with crypto, urging an open-minded approach to innovation. Hill, who may soon become acting chair, addressed concerns over “pause letters” the FDIC issued to banks from 2022 to 2023, perceived as discouraging crypto activities. He criticized the lack of consistent expectations and likened the restrictive measures to “Operation Choke Point.” Hill emphasized ending such tactics while refining the implementation of the Bank Secrecy Act to balance financial security and innovation. Despite industry skepticism, the FDIC maintains it does not discourage banks from engaging with crypto clients.

North Dakota Considers Bitcoin and Digital Assets for State Investments

North Dakota’s legislature introduced Resolution 3001 to diversify state funds by investing in digital assets and precious metals, aiming to counter inflation. Proposed by several state representatives and senators, the resolution encourages the State Treasurer and Investment Board to explore new asset classes but stops short of specifying Bitcoin. The move reflects a broader trend, as states like New Hampshire, Florida, and Texas also consider integrating Bitcoin into their financial strategies. While symbolic for now, the resolution highlights growing interest in Bitcoin and blockchain technology among U.S. states.

Three Russians Indicted for Operating Crypto Mixers Linked to Money Laundering

A federal grand jury in Georgia indicted Roman Ostapenko, Alexander Oleynik, and Anton Tarasov for allegedly operating crypto mixers Blender.io and Sinbad.io, which facilitated money laundering and unlicensed money transmission. The mixers were used by criminals, including North Korean hackers, to obscure transactions and launder funds from major hacks like the $600 million Axie Infinity breach. Blender was sanctioned by the U.S. in 2022, and Sinbad was identified as its successor before being shut down in 2023. The defendants face up to 20 years in prison for money laundering and five years for operating unlicensed businesses. Tarasov remains at large.

Russia Begins Selling Seized Bitcoin from Infraud Hacker Bribery Case

The Russian Treasury has started liquidating over 1,000 Bitcoin seized during a 2023 investigation into the Infraud hacker group. Initially, Moscow is selling $10 million worth of BTC confiscated from former investigator Marat Tambiev, who was convicted of accepting crypto bribes to shield the group from law enforcement. Legal complications, including fragmented crypto holdings and alleged asset transfers to family members, have slowed the process of liquidating the entire BTC 1,032 stash. Tambiev is serving a 16-year sentence, with additional properties and assets also targeted for state benefit.

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