cryptomode

[cryptomode]

SEC Freezes 'Modern Money Team' Assets, Alleging $12M Crypto Scam

The U.S. Securities and Exchange Commission (SEC) moved Friday to freeze the assets of a cryptocurrency mining and multilevel marketing scheme that it claimed bilked investors of $12 million. Unsealing its complaint against Utah resident Daniel F. Putnam, his businesses MMT Distributions and R & D Global and associates Angel A. Rodriguez of Utah and Jean Paul Ramirez Rico of Colombia, the SEC claimed the three had lied to investors and misappropriated their funds. The “Modern Money Team,” (MMT) as Putnam apparently called both businesses, invested in crypto mining equipment from at least July 2017 and eventually pivoted to offering investors “cryptocurrency trading packages” that would exploit crypto “arbitrage” opportunities at Bitfinex, according to the complaint, which was filed in the U.S District Court for the District of Utah. Ramirez ran the crypto investments, Rodriguez was the liaison, and Putnam, a veteran of multilevel marketing, ran MMT. Two hundred investors joined Putnam’s mining scheme, and MMT collectively raised $12 million from 2,000 investors in total, the SEC alleged. The SEC further alleged that MMT ceased paying out investors in Nov. 2019 but continued to raise funds through March 9 2020. But the complaint said some of the money never went toward crypto mining equipment or digital asset investments. Instead, Putnam spent over $100,000 of his investors’ funds on a condominium and $33,000 buying a spa, according to the SEC.   Ramirez controlled the Bitfinex account that Putnam told investors as recently as January 2020 held 260 bitcoin, according to the complaint. But the SEC alleged that the account never held more than 50, and that it was closed in May 2019. Ramirez had been periodically making ponzi-like payments to investors, the SEC alleged. The SEC alleged that Putnam and Rodriguez knew “or were reckless in not knowing” that Ramirez was running a ponzi-like scheme based on Whatsapp communications.  “We are either going to retire this year or go to jail,” Putnam texted to Rodriguez in February 2019, according to the SEC. “And Im still not sure any of it is real.” DisclosureThe leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Credit: Source link Read the full article

[cryptomode]

The Latest Ransomware Victim is a NASA Contractor

As SpaceX and NASA celebrated their first human-operated rocket launch on May 30, cybercriminals behind a ransomware known as DopplePaymer launched an attack against one of NASA’s IT contractors.According to a blog post by the hackers, the gang managed to breach the network of the Maryland-based Digital Management Inc, or DMI. This company provides IT and cyber-security services to several Fortune 100 companies and government agencies.DopplePaymer hackers leaked almost 20 archive files belonging to NASA through a portal operated by the gang, including HR documents and project plans. Some of the employee details matched with public LinkedIn records.

Ransomware threatens to leak stolen data

The report claims that DopplePaymer managed to encrypt about 2,853 servers and workstations during the attack. It could not be independently corroborated whether the entire affected infrastructure is related to NASA.The modus operandi of this ransomware is similar to that perpetrated by Maze or REvil — It threatens to release targeted company data if the ransom is not paid.Speaking with Cointelegraph, Brenda Ferraro, VP of Third-Party Risk at third-party risk management firm Prevalent, commented on NASA’s ransomware attack:“NASA’s Third-Party Risk Management program must harmonize both threat intelligence and risk assessments to avoid breach incidents root caused by IT contractors, dark web, ransomware, etc. (...) In fact, if NASA’s program does not incorporate cyber and business intelligence as an integral part of their risk program and invoke continuous monitoring and evaluation as a mandatory risk management practice, IT contractor hygiene vulnerability weaknesses will be found by the adversaries.”

Bolstering crypto risk mitigation

On the role that cryptos continue to play in the increase in ransomware attacks, Ferraro said the following:“During ransomware attacks, crypto threat intelligence plays a critical role in providing a lens on real-time dark and deep web sourced blind spots such as; hidden websites, handles, IP addresses and in some cases physical locations. Without in-the-moment crypto intelligence, the victimized networks are open to activity such as ransomware as a service, money laundering services, etc. in blockchain time.”Aetna’s former CISO also warned about the current large volume of crypto exchange and its role in the ransomware attacks:“If you do not bolster the adoption of crypto risk mitigation and use continuous threat intelligence monitoring, the trend of ransomware attacks will instigate the crypto’ wild west’ economy, resulting in securing an uncomplicated landscape for the bad actors to access and sell the information.”

Latest ransomware attacks by other ransomware gangs

 Recently, three US-based universities were targeted by the NetWalker ransomware. Cointelegraph also reported on a ransomware attack perpetrated against Texas-based data center provider, CyrusOne, by the REvil gang. Credit: Source link Read the full article