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2024 DSIR Deeper Dive: Preserving Ephemeral Messaging – Capture Data Before Its Ghosts Haunt Your Compliance

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In this issue:<a></a>



• <a href="#ETH">ETH Staking Data Published, Blockchain Solutions Launch for Financial Services</a> • <a href="#New">New York Attorney General Proposes New Legislation for Crypto Industry</a> • <a href="#UK">UK Authorities Target Illegal Crypto ATMs</a> • <a href="#Reports">Reports Detail Crypto Malware, Phishing and Hacked Exchange Accounts</a>



ETH Staking Data Published, Blockchain Solutions Launch for Financial Services



By <a href="https://www.bakerlaw.com/ChristopherLamb">Christopher Lamb</a>



According to a recent report, Ethereum’s ether (ETH) staking rewards “hit a record 8.6% post-Merge, with validators earning $46 million in the first week of May.” Validators reportedly earned 24,997 ETH in the first week of May, representing a 40 percent increase over the previous week. The report notes that the increase in rewards may have been caused by a “trading craze” of new memecoins.



A recent press release announced the planned launch of the Canton Network, described as the “industry’s first privacy-enabled interoperable blockchain network designed for institutional assets and built to responsibly unlock the potential of synchronized financial markets.” The press release lists multiple major financial and technology firms as participants in the Canton Network. According to the press release, the Canton Network will provide “decentralized infrastructure that connects independent applications” built with the smart contract language Daml. The press release further describes the Canton Network as “a ‘network of networks,’ allowing previously siloed systems in financial markets to interoperate with the appropriate governance, privacy, permissioning and controls required for highly regulated industries.”



In another recent press release, a multinational professional services company announced beta availability of a new ESG focused product developed on the Ethereum Network and made available through the company’s blockchain SaaS platform. According to the press release, the new solution “will provide a single, verifiable view of CO2 emissions (C02e) to address the needs of enterprises that struggle to accurately measure and track their carbon footprint.”



For more information, please refer to the following links:



<ul>
<li><a href="https://cointelegraph.com/news/ethereum-validators-earn-a-record-46m-as-staking-rewards-rate-surges">Ethereum validators earn a record $46M as staking rewards rate surges</a></li>



<li><a href="https://www.businesswire.com/news/home/20230509005497/en/New-Global-Blockchain-Network-of-Networks-for-Financial-Market-Participants-and-Institutional-Assets">New Global Blockchain Network of Networks for Financial Market Participants and Institutional Assets</a></li>



<li><a href="https://www.prnewswire.com/news-releases/ey-launches-ey-opschain-esg-to-provide-a-trusted-platform-for-emissions-and-carbon-credit-traceability-through-tokenization-301818831.html">EY launches EY OpsChain ESG, to provide a trusted platform for emissions and carbon credit traceability through tokenization</a></li>
</ul>



New York Attorney General Proposes New Legislation for Crypto Industry



By <a href="https://www.bakerlaw.com/AmosKim">Amos Kim</a>



In a recent press release, the New York Attorney General announced new proposed legislation that would increase oversight of the cryptocurrency industry. The Crypto Regulation, Protection, Transparency, and Oversight Act (CRPTO Act) “seeks to protect New York investors by bringing regulations and oversight that are applied to other financial services to the cryptocurrency industry” as well as address other issues unique to the industry. The press release notes that the CRPTO Act would codify the New York Department of Financial Services’ authority to oversee the state’s digital asset licensing regime. According to the press release, among other things, the CRPTO Act seeks to (1) stop conflicts of interest by placing certain prohibitions on specific industry players such as marketplaces, issuers and brokers; (2) require public reporting of financial statements by cryptocurrency companies; and (3) bolster investor protections by enacting “know-your-customer” provisions and “banning the use of the term ‘stablecoin’” unless a digital asset is backed 1:1 with U.S. currency or other high-quality assets as defined by federal regulations.



For more information, please refer to the following links:



<ul>
<li><a href="https://ag.ny.gov/press-release/2023/attorney-general-james-proposes-nation-leading-regulations-cryptocurrency">Attorney General James Proposes Nation-Leading Regulations on Cryptocurrency Industry</a></li>



<li><a href="https://www.coindesk.com/business/2023/05/04/judge-upholds-freeze-on-spartacusdaos-35m-in-lawsuit-served-via-discord-nft/">Judge Upholds Freeze on SpartacusDAO’s $35M in Lawsuit Served Via Discord, NFT</a></li>
</ul>



UK Authorities Target Illegal Crypto ATMs



By <a href="https://www.bakerlaw.com/KeithRMurphy">Keith R. Murphy</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>



A recent press release by the Financial Conduct Authority (FCA) of the United Kingdom announced that the FCA has conducted inspections in multiple cities suspected of hosting illegally operated cryptocurrency ATMs. The press release notes that the inspections are part of a joint effort by police and crime unit representatives to disrupt these unregistered and illegal businesses. An enforcement official quoted in the press release said crypto ATMs “are a key component in the facilitation of money laundering and the movement of funds acquired through criminal activity.” The press release further notes that there are no crypto ATM operators currently registered with the FCA.



For more information, please refer to the following links:



<ul>
<li><a href="https://www.fca.org.uk/news/press-releases/fca-continues-action-against-unregistered-crypto-atms-across-uk">FCA continues action against unregistered crypto ATMs across the UK</a></li>
</ul>



Reports Detail Crypto Malware, Phishing and Hacked Exchange Accounts



By <a href="https://www.bakerlaw.com/ChristinaOGotsis">Christina O. Gotsis</a>



According to recent reports, in April, threat actors introduced malware designed to steal information from the macOS operating system. The Atomic macOS Stealer (“The Atomic”) was reportedly posted for sale on Telegram for $1,000 per month and it is capable of stealing information such as Keychain passwords, complete system information, files from the desktop and documents folders, and even the macOS password. The malware can also extract data from web browsers and cryptocurrency wallets like Atomic, Binance, Coinomi, Electrum and Exodus, and it comes with a ready-to-use web panel for managing victims. The malware reportedly poses as an unsigned disk image that, when executed, requires the victim to enter his/her password. After harvesting the victim’s data, the malware sends it to a remote sever and then to preconfigured Telegram channels.



According to another recent report, scammers have used internet ads to steal more than $4 million from unsuspecting users in phishing schemes. When ads are clicked, users are directed to URLs with slight name changes that make it difficult to detect that the links are malicious.



A final recent report noted that cybercriminals have been selling hacked, verified cryptocurrency exchange accounts on the darknet for as low as $30 and as high as $1,170 apiece. According to the report, hacked cryptocurrency exchange accounts are the highest-priced financial account information on the dark web.



For more information, please refer to the following links:



<ul>
<li><a href="https://thehackernews.com/2023/04/new-atomic-macos-stealer-can-steal-your.html">New Atomic macOS Malware Steals Keychain Passwords and Crypto Wallets</a></li>



<li><a href="https://cointelegraph.com/news/google-ads-data-4m-stolen-through-crypto-phishing-urls">Google Ads data: $4M stolen through crypto phishing URLs</a></li>



<li><a href="https://cointelegraph.com/news/darknet-hackers-are-selling-crypto-accounts-for-as-low-as-30-a-pop">Darknet hackers are selling crypto accounts for as low as $30 a pop</a></li>
</ul>

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Keith R. Murphy

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Robert A. Musiala Jr.

Web3 and Digital Assets

Digital Assets and Data Management

ETH Staking Data Published; Blockchain Solutions Launch; NY AG Proposes Crypto Legislation; UK Targets Crypto ATMs; Crypto Hack Schemes Reported

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