Tag: securities and exchange commission
Pastor Charged with Cryptocurrency Scam
Washington-based Pastor Francier Obando Pinillo has been charged for his involvement in “Solano Fi,” a fraudulent cryptocurrency investment business that Pinillo claims “came to him in a dream.” A pastor in a church based in Pasco, Washington, Pinillo allegedly took advantage of his position to sway members of the congregation to invest in Solano Fi, defrauding over a thousand victims of millions of dollars in what he claimed was a “safe and guaranteed investment.” “Fraudulent investment schemes are not new, but cryptocurrency scams are a new way fraudsters take money from hardworking, honest people,” states US Attorney Vanessa Waldref. The landmark case illustrates how cryptocurrency scams have now become mainstream. Fraudulent cryptocurrency schemes have previously been viewed as the province of highly organized hostile nation-state-backed cybercriminals and shadowy ‘market makers”. But the Pinillo case illustrates how even relatively unskilled crooks are now capable of preying on the greed of unsuspecting investors.
Hackers infiltrate SEC’s X Account to Boost Bitcoin
A cybercriminal in Alabama, suspected of hacking into the US Securities and Exchange Commission’s (SEC’s) X account, has been arrested. He is accused of using the compromised account to post fake messages, causing the value of Bitcoin to boost by $1,000. Hacker Eric Council Jr, also known as “EasyMunny” and “AGiantSchnauzer,” was allegedly able to secure the credentials for the SEC’s X account through a method called “Sim Swapping.” The council created a fake ID using the stolen personal information of someone who had access to the X account. With the fake ID, he was able to purchase a SIM card linked to the victim’s phone in a cellphone provider store in Alabama, giving Council access to the victim’s personal information and log-in credentials.
Feds Create Their Own Cryptocurrency for Sting Operation
The US Federal Bureau of Investigation (FBI) has created “NexFundAI”, a cryptocurrency created to further their investigation, “Operation Token Mirrors.” The FBI also announced that 18 individuals have been charged for market manipulation and “wash trading” -- the first of its kind in the cryptocurrency industry. The investigation, described as “a new twist to old-school financial crime”, garnered charges against cryptocurrency company leaders and employees from Texas, the UK, and Portugal, and over $25 million in seized cryptocurrency. NexFundAI enabled the FBI to monitor and track illicit activities conducted by cryptocurrency companies and financial service firms, or “market makers.”
Two Individuals Linked to “Hive RAT” Arrested – April 16th
The U.S. Department of Justice (DoJ) announced the arrest of two individuals in Australia for their ties to the "Hive RAT" remote access trojan (RAT). The two arrested individuals are suspected of being behind the distribution of the RAT, as found on the ‘Hack Forums’ cybercrime forum.
SEC fines companies $400k for over-hyping AI
Ever since the launch of the deeply flawed Microsoft-backed public-facing artificial intelligence (AI) service ChatGPT at the end of 2022, AI has been used to power a whole range of services. But the days of marketing and PR departments simply attaching the words “AI-driven” to over-hype any digital offering in the hope of attracting investors and customers are now hopefully coming to an end. Earlier this week, the US Securities and Exchange Commission (SEC) fined two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., a total of US$400,000 between them. The SEC’s order against Global Predictions alleged that the San Francisco-based firm made false and misleading claims in 2023 on its website and on social media about its purported use of AI. The order against Toronto-based Delphia alleged that the firm had made false and misleading statements in its SEC filings, in a press release, and on its website regarding its purported use of AI and machine learning.
FNF hack exposes 1.3m customer details
US real estate financial services fat cat, Fidelity National Financial (FNF), has revealed details of a cybersecurity breach that occurred in November, exposing the details of 1.3 million customers. An updated filing to the US Securities and Exchange Commission (SEC) claims the attack, which occurred on November 19, 2023, was detected early on and successfully contained. But despite FNF’s best efforts, over a million customers will wonder if the threat actors behind the breach also believe that their attack has been successfully “contained.” The nature of their target suggests otherwise. A Fortune 500 company, FNF is one of the largest companies of its kind in the US, with an annual revenue of over $10 billion, a market capitalization of $13.3 billion, and a staff of over 23,000 people.
SEC X Account Hacked to Push Bitcoin ETFs – January 10th
The Securities and Exchange Commission (SEC) confirmed through a spokesperson and social media announcements that the agency's X (formerly Twitter) account was compromised to promote Bitcoin ETFs. Bitcoin's value spiked to nearly $48k as a result of the false Tweet, despite being taken down just 30 minutes after being published.
Blockchains lose $1.8 billion to cybercrime
Web 3.0, the blockchain version of the traditional internet that hosts decentralized blockchain crypto-currencies, lost over US$1.8 billion in 2023 to cybercrime. Newly released findings from cybersecurity firm Certik’s latest Hack3D Annual Report cast a pall over the US Securities and Exchange Commission (SEC)’s much-anticipated approval of up to a dozen Bitcoin ETFs (exchange-traded funds) on Wednesday. It will also cast a long shadow over the hoped-for institutional acceptance of crypto-currencies by influential financial entities, including Swift, the Hong Kong Monetary Authority, and the Australia and New Zealand Banking Group (ANZ). In the second half of last year, the SEC scrutinized a series of proposals, notably extending review periods for Bitcoin ETF applications from major firms like BlackRock, ARK, and Fidelity.
Mr. Cooper breach exposes 14m victims’ data
US mortgage service provider Mr. Cooper has disclosed a breach to the U.S. Securities and Exchange Commission (SEC) affecting over 14.5 million people. Breached data includes names, addresses, phone numbers, social security numbers, dates of birth, and bank account numbers. The Mr Cooper breach is indicative of several trends likely to shape the cybersecurity industry in 2024. The new obligation to report material cyber breaches within four days that came into effect last week on December 15 is widely expected to reveal a huge iceberg of what might have previously been unreported and, therefore, uncounted cyber breaches. The obligation to detail the loss and those affected also puts a big onus on organizations in all sectors to implement systems capable of identifying and tracking any intrusions into their network.
Pittsburgh-area Water Authority Hit by Cyber Attack – November 28th
The Municipal Water Authority of Aliquippa reported a cyberattack that shut down their water pressure technology, to the U.S. Department of Homeland Security this past weekend. According to the U.S. Department of Homeland Security, the unassuming cyberattack may come with serious international implications, with the attack suspected to come from an anti-Israeli Iranian threat actor group labeled as "Cyber Av3ngers". This nation-state cyberattack is not the first to disrupt critical water infrastructure.