FinCEN Issues Guidance, SIM Hackers Charged, Bitcoin Ransomware Traced To Sanctioned Countries

Late last week, The Financial Crimes Enforcement Network (FinCEN) published FIN-2019-G001, which contains new guidance discussing how FinCEN regulations related to money services businesses apply to certain business models involving convertible virtual currencies (CVCs). On the same day, FinCEN issued FIN-2019-A003, an advisory that highlights suspicious activity and red flags associated with the exploitation of CVCs for money laundering, sanctions evasion and other illicit financing purposes.

Also last week, nine individuals connected to an "SIM Hijacking" group were charged with conspiracy to commit wire fraud and aggravated identity theft in the Eastern District of Michigan. SIM Hijacking involves hacking a phone number to exploit "two-factor authentication" and intercept text messages with the security codes required to access the target's bank or cryptocurrency accounts. The defendants allegedly facilitated the SIM Hijacking by bribing an employee of a mobile