How To Fight Ransomware in Cryptocurrency And Understand OFAC Sanctions

Welcome to the episode 7 of the 2nd season of “WE WERE ON A BREAK” - Ross Voice. The series where the host, Stephen Brent Sargeant (Compliance Consultant to Bitfinex) talks to industry professionals during the CoronaVirus (COVID-19) quarantine and gains industry insights and expertise. On the heels of the Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) designation of SUEX OTC, (SUEX), a virtual currency exchange, special guest Ari Redbord (Head of Legal and Government Affairs) of leading Blockchain Intelligence Company, TRM Labs and Stephen breakdown the historic approach of Sanctioning a cryptocurrency exchange and how the industry stakeholders react to the concentrated efforts of USA law enforcement and regulators to counter Ransomware.

In this session, we go deep into the mind of the USA regulators, VASPs and Ransomware victims to determine the implications on such a huge Sanctions announcement and how updated guidance from US Dept. of Treasury could put pressure on illicit actors and VASPs alike in complying with the emerging interest of Ransomware by International Law Enforcement and Regulators.

**This interview was recorded on Oct. 8, 2021

**Disclaimer**
The views and opinions expressed in this episode (and all episodes) are those of the host and the guests. They do not purport to reflect the opinions or views of their employers, contractors or any organization they may be affiliated with now or in the future.

Time Stamps (Return back to your favorite point of the episode):
•(1:50) – Who Is Ari Redbord And The Man Behind The Million Dollar Smile
•(03:20) – Understanding How Dept. Of Treasury And Other Agencies Align Approach Against Illicit Actors
•(6:50) – There Is No Such Thing As An Unregulated Exchange Only Non-Compliant Exchanges
•(8:05) – What Is A Physical Crypto Exchange Doing In A Decentralized World
•(9:00) – Explaining What Are Nested Exchanges And Parasite VASPS
•(11:35) – What Role Do Larger Exchanges Have In Monitoring Their Exchange Customers
•(14:40) – Why Did They Stop At SUEX And Not Go After Other Exchanges By Same Operator
•(17:40) – How Much Reach Do USA Regulators Have When Enforcing SANCTIONS On Foreign Crypto Operators
•(20:05) – What Is The Impact Of Regulations And Sanctions On Cryptocurrency
•(23:38) – What Happens In The First 48 Hours Of Crypto Hacks, Scams And Thefts (mentioned Rich Sanders from Cipherblade)
•(26:15) – How Does TRM Labs Guide Their Clients On Ransomware Risk Mitigation
•(30:16) – Are NFTs Unlicensed Securities And How Do NFT Projects Prepare For Regulation
•(33:16) – Why Is There More Focus On NFTs Than Traditional Art / Luxury Goods Re: AML
•(36:52) – How Do Victims Of Ransomware Avoid Contributing To Sanctions Evasion / Terrorist Financing
•(41:25) – How To Protect Yourself From Phishing Attacks And Social Engineering
•(45:06) – Highlights From ACAMS Las Vegas

Stephen Brent Sargeant (Host)
•LinkedIn (Best way to reach me) - linkedin.com/in/stephen-brent-sargeant-cams
•Instagram (Everyday type stuff) https://www.instagram.com/stephen_b_sargeant/
•Twitter (I communicate in GIFs) - https://twitter.com/lifesgt
•Business Related Matters (Let’s Collab): stephenbsargeant@gmail.com

Ari Redbord (Guest)
•LinkedIn (Fabolous Posts) - https://www.linkedin.com/in/ari-redbord-4054381b4
•LinkedIn (TRM Labs) https://www.linkedin.com/company/trmlabs/
•Twitter (TRM Labs) - https://twitter.com/trmlabs?s=20
•Company Website (TRM Labs): https://www.trmlabs.com/


Resources
•Treasury Comments On Release of Ransomware-Related Data and Guidance: https://www.trmlabs.com/post/watch-the-interview-treasury-comments-on-release-of-ransomware-related-data-and-guidance
•OFAC takes first action against cryptocurrency exchange and issues updated ransomware advisory: https://www.trmlabs.com/post/ofac-takes-first-action-against-cryptocurrency-exchange-and-issues-updated-ransomware-advisory
•Behind Suex.io: the first sanctioned cryptocurrency exchange: https://www.trmlabs.com/post/behind-suex-io-the-first-sanctioned-cryptocurrency-exchange
•Ransomware & Cyberattacks in the Age of Crypto: https://www.trmlabs.com/post/register-now-ransomware-cyberattacks-in-the-age-of-crypto
•OFAC Sanctions SUEX.io Cryptocurrency Exchange: What Every AML / Compliance Professional Needs To Know: https://www.linkedin.com/posts/stephen-brent-sargeant-cams_ofac-sanctions-suexio-crypto-exchange-activity-6849691432601600001-KG_z
•US Department of Treasury Press Release: https://home.treasury.gov/news/press-releases/jy0364
•US Department of Treasury :Updated Advisory on Potential Sanctions Risks for Facilitating Ransomware Payments:
https://home.treasury.gov/system/files/126/ofac_ransomware_advisory.pdf

Background Music (beat name: Leslie)
•Goose Goddi (Music Producer) - https://instagram.com/goosegoddi?igshid=1paia8lwy2x3o
•Beats Can Be Found On Amazon Music - https://www.amazon.com/Music-Station-Goose-Goddi/dp/B08B4BLCH1