Wally Adeyemo, Deputy Secretary of the United States Treasury, said his department is looking into new sanctions tools to pursue bad actors in the crypto space, citing a recent settlement with Binance.
In prepared remarks for the Blockchain Association’s Policy Summit on Nov. 29, Adeyemo said the U.S. Treasury had called on Congress to allow sanctions in which an entity could be fully cut off from the U.S. financial system. The Deputy Treasury Secretary said the move aimed to stop bad actors like the terrorist organization Hamas from “find[ing] safe haven within the digital asset ecosystem,” but also referenced U.S. authorities’ settlement with crypto exchange Binance.
“Over several years, Binance allowed itself to be used by the perpetrators of child sexual abuse, illegal narcotics trafficking, and terrorism, across more than 100,000 transactions,” said Adeyemo. “Groups like Hamas, Al Qaeda, and ISIS conducted these transactions.”
According to the Deputy Treasury Secretary, the U.S. government needed to coordinate with companies in the financial sector, with the latter sharing information related to combatting money laundering, fraud, and the financing of terrorism. He also hinted that stablecoin providers based outside the U.S. could be a target of authorities as Treasury officials work “to close these gaps.”
Adeyemo’s remarks came the same day the U.S. Treasury’s Office of Foreign Assets Control imposed sanctions on crypto mixer Sinbad, alleging the platform facilitated funds laundered for the North Korea-based Lazarus Group. On Nov. 21, Binance settled with U.S. authorities, including those at Treasury, in a $4.3 billion deal, requiring former CEO Changpeng Zhao to step down and plead guilty to one felony charge.
“[W]e need to update our illicit finance authorities to match the challenges we face today, including those presented by the evolving digital asset ecosystem […] we cannot rely on statutory definitions that are decades-old to address the illicit finance risks we face in 2023.”
In August, the U.S. Treasury released a draft of rules aimed at addressing difficulties in reporting and paying taxes on crypto transactions. Many have criticized the proposal as impractical due to the reporting requirements for brokers, expected to go into effect in 2026.
Hydra market founder Stanislav Moiseev and 15 of his accomplices were jailed for between 8 and 23 years for their involvement in the darknet market and crypto mixer.
Richard Tice has been challenged for appearing to cast doubt on court documents that detailed how one of the party’s MPs was jailed for repeatedly kicking his girlfriend.
The Reform UK deputy leader defended James McMurdock, who was jailed 18 years ago for repeatedly kicking his girlfriend, saying the UK is a “Christian nation” that believes in “redemption”.
Speaking to the Politics Hub with Sophy Ridge, Mr Tice said he did not believe Mr McMurdock, the party’s MP for South Basildon and East Thurrock, should be “doomed as a sinner forever”.
He spent 21 days in a young offenders’ institution after admitting to the attack.
Before he was elected as an MP, the investment banker had not publicly disclosed the conviction and when it emerged in July he had been jailed for attacking his girlfriend when he was 19 years old, he downplayed the incident as a “teenage indiscretion”.
But further details of what happened during the incident emerged after The Times applied to the court for information from the official record, which showed he received the custodial sentence for “kicking” the victim “around four times”.
Mr Tice said his colleague was an example of someone who “had a bad issue at a very young age but has gone full circle”.
He said the UK was a “great Christian nation” and added: “Are you seriously saying that if someone makes a bad mistake in life, aged 19, that there’s no redemption they are doomed as a sinner forever? No.”
He went on: “The whole point of Christianity is a sense of if you’ve done something wrong, you pay your price. And at the end of that sentence, whatever it is, then, in a sense you’ve done your bit, you served your punishment, whatever it is.
“Isn’t it remarkable that an individual had I, you know, had a bad issue at a very young age but has gone full circle.
“Doesn’t it show, actually, to other young people that bad stuff can happen – you can make bad judgements, you can get things badly wrong. But many years later, actually you can you can do really well.
“He had a great job and end up as a member of parliament. I think that’s a good thing.”
MPs do not have to disclose previous convictions to the public when standing, with only people in prison at the time of the election for a sentence of more than a year barred.
McMurdock’s victim’s mother brought the incident to light a week after his election, saying he “left marks on her body” and “it took two security guards to pull him off her”.
When the allegations were revealed, McMurdock said the pair had argued and he had pushed her.
Challenged on whether there had been a “major discrepancy” between Mr McMurdock’s version of events and what had been reported, Mr Tice replied that his “understanding” of the incident was “different” to what The Times said had happened.
Pressed on what he believed happened, Mr Tice replied: “It actually doesn’t matter.”
“I’m trusting James,” he said.
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‘He wasn’t vetted’, says Farage of MP
“He’s bang on the money and I think that what he says is right. He was there. The court wasn’t there. The Times weren’t there.
“The law is the law. The law ruled that he had transgressed and he was punished. He served his punishment.”
When the allegations emerged, Mr McMurdock told Sky News the incident was “the biggest regret of my life”.
He said: “While I absolutely deny the horrific details in this tale, there is one truth in it that I cannot, nor will not deny or hide from.
“A generous person might call it a teenage indiscretion but I do not expect everyone to be so kind.
“Nearly 20 years ago, at 19 years of age, at the end of a night out together, we argued and I pushed her. She fell over and she was hurt. Despite being 38 now and having lived a whole life again I still feel deeply ashamed and apologetic.
“Despite us both being very drunk, I handed myself into the police immediately and admitted my fault. I was charged for what I did, not for what has been claimed, and I faced the consequences then and paid for my action in full.
“This is the biggest regret of my life and I wish I could go back in time and fix things.”