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Wanted Wirecard Exec Marsalek Hiding in Russia After Moving Funds in Bitcoin

Former Wirecard Chief Operating Officer Jan Marsalek used Bitcoin to move funds to Russia where he is now in hiding, according to a Russian media outlet.

Jan Marsalek, the former Chief Operations Officer of the now-defunct German Wirecard payments allegedly sent Bitcoin (BTC) from Dubai into Russia, where he is now reported to be hiding.

According to a local Russian media report on July 20, Jan Marsalek is hiding from German and Austrian authorities in a private house outside of Moscow under the watch of Russian intelligence operatives. The amount of BTC cryptocurrency Marsalek sent prior to his arrival in Russia was not reported.

Marsalek Ties to Russian Intelligence

German payment firm Wirecard collapsed after auditors Ernst & Young raised issue with a nearly 2 billion Euro hole in financial services provider’s books. The 40-year-old Austrian citizen, Marsalek, who held the position of COO of Wirecard since 2010, was in charge of the company’s Asian operations.

On 18 June 2020, Jan Marsalek along with the entire management team, was fired. Marsalek explained to his colleagues that he was going to the Philippines to chase and find the missing billions, in order to prove his innocence—only to go missing himself later that day.

Marsalek was last reported to have been in Belarus. According to investigative journalists from Bellingcat, a collaborative investigation uncovered Russian immigration records and data kept by Russia’s Federal Security Services (FSB) that suggests that Russia’s security service has had a long-standing relationship with Marsalek. Marsalek is reported to have used a number of different passports – including a third-country diplomatic passport – to visit Russia dozens of times in the last 15 years. It also was found that immigration records had been forged on his behalf to cover his tracks as he made his way into Minsk, the capital city of Belarus.

The investigation points to Marsalek receiving help and having links to Russia’s FSB intelligence, Bellingcat wrote, “FSB has complete control over the Russian border service and thus over the centralized Russia-Belarus border database. Therefore any manipulation of data would have to be done at the behest of, or at least with the consent of, the FSB.”

Marsalek is currently wanted by German and Austrian authorities on the charges of fraud and embezzlement related to the 2 Billion Euro that went missing from Wirecard.

US Department of Homeland Security Can Now Trace Illicit Monero Cryptocurrency Transactions

The United States Department of Homeland Security (DHS) will now be able to track transactions of the most privacy-oriented cryptocurrency coin, Monero (XMR), leveraging a new tool by crypto intelligence company CipherTrace.

In an official release, CipherTrace mentioned that the forensic tools were developed under contract with DHS Science & Technology Directorate. Law enforcement and government agencies will now be able to use the tools to visualize and trace Monero transactions flows in criminal investigations.

Monero The Black Sheep of Crypto

Although Bitcoin cryptocurrency has been ranked the number one cryptocurrency choice among criminals, a significant number (45%) of darknet market transactions are carried out using the privacy coin Monero.

Monero employs a unique design to ensure user anonymity and always enforced privacy. Ring signatures are built into the protocol design and thus enable transaction mixing. Therefore, when someone tries to locate the source of a Monero transaction, it would appear as if a whole crowd of users took part in the exchange, thus making it almost impossible to identify the true source.

Law enforcement officials have been highly interested in finding a way to trace Monero. In the past, there has been no tool with the capacity to trace Monero transactions. However, Dave Jevans, the CEO of CipherTrace, said that the company has developed the first tool that has the ability to track Monero transactions.

Jevans mentioned that the tool has been in development for over a year. The US Department of Homeland Security will now use the tool to carry out investigations and trace Monero transactions.

The tool provides the US DHS with visualization, exploration, and search tools for tracking Monero transaction flows; integrated with CipherTrace’s Inspector financial investigations products. The tools help to ensure investment funds, OTC trading desks, and cryptocurrency exchanges that they do not accept Monero currencies from illicit proceeds and investigate Monero obtained from potentially illicit sources and take appropriate actions to stay in compliance.

Blockchain And Data Privacy

As people have public blockchains, the strive for anonymization in both processing and transaction is a key element for preserving consent and protecting privacy. Monero is one cryptocurrency that has taken the lead on this, and which uses stealth addresses and ring signatures. Such mechanisms now support the hiding of the core information of a transaction. Such anonymization has made life increasingly difficult in detecting and investigating crypto-related crimes. Thanks to the recent development of forensic tools for law enforcement and government agencies to monitor, track, and investigate illicit Monero transactions.

CIA Eyes Blockchain Technology with New Research Lab

The US Central Intelligence Agency (CIA) has rolled out a federal laboratory and in-house research and development arm dubbed CIA Labs to scale up technological and scientific breakthroughs for future intelligence challenges.

It views blockchain technology as one of the technological advancements that will boost its mandate of gathering, processing, and analyzing national security information from across the globe.

CIA interest in DLT and Blockchain

The CIA Labs will be part of at least 300 U.S. federal labs, which offer science and technology solutions to new challenges.

The research arm has earmarked distributed ledger and blockchain-enabled technologies as an area of interest. Others include quantum computing, human interface systems, bioscience and biotechnology, artificial intelligence, virtual and augmented reality, and data analytics.

The head of CIA’s Directorate of Science and Technology, Dawn Meyerriecks, noted:

“Some phenomenal innovations have come from the CIA over the years, and with CIA Labs, we’re now better positioned to optimize developments and further invest in our scientists and technologists. In an evolving threat landscape, CIA Labs will help us maintain our competitive edge and protect our nation.”

He, therefore, hopes that these incentives will offer the agency an upper hand in the future.

A New Way to File Patents

The CIA Labs will present its officers with new opportunities to file patents on innovative ideas using cutting-edge technologies like blockchain. They will also attain a percentage of the profits from the same.

The American administration continues to view blockchain as a game-changer in streamlining various sectors. For instance, in July, through its federal agency the Food and Drug Administration (FDA), it revealed its consideration for blockchain as one of the technological innovations that could prompt traceability and food safety culture.

The FDA noted that blockchain could help in tracing new sources of food ingredients to help in bending the curve of foodborne illness in the nation.

$250,000 BTC: Kraken Survey Shows Investors are Bullish on Bitcoin, Altcoins and DeFi in 2021

The latest Kraken VIP sentiment survey reflects how professionals and investors are thinking about how the cryptocurrency sector might evolve in the year ahead. Bitcoin price sentiment is at an all-time high with some projecting the BTC price as high as $250,000.

In the Kraken Intelligence 2H2020 Crypto Sentiment Survey released on Dec. 1, the research arm of the US-based crypto exchange Kraken focuses on its VIPS—a diverse mix of brokers, custodians, family offices, hedge funds, market makers, miners and traders—sharing their insight into the state of the crypto market heading into 2021 for any investor seeking an edge.

While there has been a slew of prominent funds and investors like Microstrategy’s Michael Saylor and billionaire investor Paul Tudor Jones making big bets on Bitcoin this year—the Kraken intelligence report indicates that the bullish sentiment has spread to its VIPs and extends to altcoins and the DeFi space.

Bitcoin and Ethereum Price Sentiment

The respondents to Kraken’s sentiment survey offer a bullish forecast for the Bitcoin and Ethereum price in 2021. The high-end estimates for the BTC price appreciation tops at $250,000 while Eth price tops at $15,010. Respondents are optimistic that next year both cryptocurrencies will provide at least 175% returns from October prices.

With the intent of gauging market optimism, particularly in light of what has been a 6-month crypto rally following unforeseen circumstances in the COVID-19 economic disruption from March 2020, Kraken Intelligence asked survey takers for their 2020 Bitcoin (BTC) and ether (ETH) price targets, in addition to 2021 to compare survey-over-survey summary statistics to identify changes.

According to the Bitcoin price targets for 2020 fell in the last half of the year. The Kraken findings show:

“The average Bitcoin price target among 309 responses fell -35% survey over-survey to $14,866, well below February’s average of $22,866. The median price target also retraced -28% from $19,424 to $14,000, and the most commonly cited price target was $15,000, down -25% from $20,000.”

For crypto’s number two—Ethereum—price sentiment was also down in the latter half of the year. The survey reads:

“With respect to ether (ETH), the average price target among 289 responses was $549, off -32% from the previous survey’s average of $810. The median price target was unchanged at $500 and the most frequently cited price target was $500, up +66% from $300. With only 3 months left in the year, we anticipated less optimistic summary statistics and lower standard deviations for both Bitcoin and ether price targets.”

The responses from participants on their 2021 Bitcoin and Ether price targets indicate that the market believes the latest crypto rally has serious legs and will continue into 2021.

The Kraken findings show:

“The average 2021 price target for Bitcoin came in at $36,602. The median price target is $25,000, and the most commonly submitted target is $20,000. Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000.”

Regarding Ethereum, Kraken’s survey participants appear to be even more optimistic of ETH performance next year with close to 59% believe that ether will, at least, hit $800. Additionally, 22% of respondents see ETH surpassing its previous all-time high of $1,595 set in early January 2018 and just under 92% see ether, at the very least, trading higher than current prices in 2021.

Altcoin and DeFi Sentiment

Altcoin and DeFi will not be left behind by investors in 2021, if Kraken’s findings are any indication. Despite tendencies to be highly volatile, altcoins remain front and center for many market participants despite collectively underperforming to Bitcoin.

Respondents were asked which altcoins were their favorite(s) and why. Participants were told to provide no more than 5 altcoins and those with fewer than 10 votes were excluded from the analysis. Approximately 105 unique altcoins were mentioned across 466 entries, with respondents providing an average of 2.5 altcoins.

Polkadot, Chainlink and Monero led the charge after Ethereum as the most popular alternative cryptocurrencies. A big factor for Kraken’s respondents in selection altcoin projects was cited as “community strength.”

Regarding the decentralized finance (DeFi ) space—the popularity of Ethereum, Polkadot and Chainlink reflected the rise of DeFi. Kraken’s respondents are investing in the belief that decentralized finance and reimagined financial products may disrupt the traditional industry. DeFi is also being credited for the increased adoption of stablecoins.

Optimism Ahead

In conclusion, the findings of Kraken’s report show that institutional adoption is driving bullish sentiment in the Bitcoin and crypto space. Almost 70% of survey respondents believe we are now in a bull market and believe that innovation, improvements, and positive regulation will boost their investments in 2021.