🧵1/Ω
i found a pretty fascinating trove of documents that detail one man's long and arduous 𝘬𝘢𝘮𝘱𝘧 to force #Tether to seize ~$3 million USDT that he lost to an address poisoning scam a few years back. Image
🧵2/Ω
Asif Ayub Patel was innocently attempting to purchase $3 million worth of gold bars from Northern Lights, a precious metals dealer based in Hong Kong that prefers to be paid in Tether, as any freedom loving Dubai resident is wont to do.
TTNRRr9jJ4sKAYExY9UryfxApFXJH2t2SJ Image
Image
🧵3/Ω
Unfortunately he was careless & got pwned by an address poisoning attack: scammer sends you some crypto from an address that starts/ends w/the same characters as the address you are trying to transact with and hopes you copy/paste from recent txns w/out checking. Image
🧵4/Ω
He ended up serving legal papers against a bunch of crypto companies:

- #Binance (of course)
- #Pexpay (I guess a broker that works w/binance?)
- #KuCoin (chinese crypto exchange)
- #WhiteBit (ukrainian/lithuanian crypto exchange)
- #Tether Image
🧵5/Ω
Eventually KuCoin coughed up the Russian ID used to open an account involved in the theft w/an email "arteeeemnikol@gmail.com"

Elliptic confirmed that wallets that received stolen USDT had transacted with #Nobitex, an Iranian exchange (pretty normal for russian criming). Image
Image
🧵6/Ω
But investigations of the criminals inside, our boy's main goal was to get #Tether et al. to revoke the stolen tokens/give him back his money. His initial attempts didn't go great.

Tether's response was basically "lol can't do anything bc open source kthxbai". Image
🧵7/Ω
WhiteBIT tried the "these are not the droids you are looking for" approach.

"Our (intentionally useless) anti-money laundering software detected no problems here therefore there is no problem here, but also defi lol." Image
Image
🧵8/Ω
Binance's tack was more "this is not the Binance you are looking for". Image
🧵9/Ω
Also while I have long been aware that Binance serves as the backend / clearing house for anyone who wants to run their own branded crypto exchange, I guess I wasn't aware of the explicitness of the arrangement between something like #Pexpay and Binance. Image
🧵10/Ω
Unsurprisingly Pexpay kind of just up and disappeared altogether, which conveniently meant none of this was Binance's problem, though "as a courtesy" they agreed to freeze arteemnikol@gmail.com's account. Image
🧵11/Ω
The scammer's defense was actually pretty ingenious - he claimed that the $3 million USDT lost by Asif Ayub Patel was actually payment for $3 mil worth of Monero / $XMR.

Monero is a) untraceable and b) on another blockchain, so this is kind of hard to disprove. Image
🧵12/Ω
Side note: the crypto industry's anti-money laundering detection tools like #Chainalysis and #AMLBot are a total joke.

IMHO they are intentionally useless, intended only to create a smoke screen for lawyers to use in cases like this.
Image
Image
Image
🧵13/Ω
Our boy hired a consultant to tell him that chinese crypto exchanges like Binance, Bybit, and HTX (owned by Justin Sun, a current business partner of the president of the united States) are popular with money launderers.

Shocker. Image
🧵13/Ω
He also sued an NFT company for airdropping NFTs into the wallets that robbed him, which is not super relevant/important but IMHO is kind of hilarious. Image
🧵14/Ω
$0.02: the gold dealer in HK was probably complicit. Most address poisoning attacks involve sending fractions of a penny, whereas this crim thought it was worth risking $100 to match the guy's test payment. Implies they knew a large followup payment was coming. Image
🧵15/Ω
That's not really addressed in the court filings and I'm sure all the other gold dealers in hong kong who prefer to send and receive cash on the blockchain preferred by money launderers would never dream of breaking any kind of law, but to me it's very sus.
🧵16/Ω
In the end, after Patel's lawyers chased scammers and the crypto co's through a bewildering list of jurisdictions, #Tether froze a bunch of scam wallets.

But by then there was only ~$410k left of what was potentially his $3 million... Image
🧵17/Ω
...and realistically speaking, seeing as how the criminal wallets that Tether finally froze had moved well over $2.5 *billion* worth of USDT in their lifetime, most of that $410k probably belonged to other people.

Couldn't verify how much Patel did or didn't recover. Image
@Bitfinexed @OccamiCrypto @SilvermanJacob @molly0xFFF @MikeBurgersburg @Holmes_Crypto_ @JustinElliott @AABerwick @_tom_wilson_ @BenFoldy
🧵18/Ω
Remember kids, if this guy had just done a normal bank transfer instead he could've just called his bank and reversed the xfer the next day instead of having to pay lawyers to chase crypto scumbags all over the world, only to in the end still lose most or all of his money. Image
🧵19/Ω
All 319 pages of court filings and communications between Mr. Patel, Tether, Binance, etc. etc. can be viewed here:
scribd.com/embeds/8034612…
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More from @Cryptadamist

Jun 25
🧵1/Ω
Since #Israel attacked #Iran Tether has frozen 112 addresses on Tron and Ethereum.

- Collectively those wallets received ~$700 million USDT before being frozen
- The top 40 of those wallets are *all* on Justin Sun's Tron blockchain

Iranian exchanges mostly use Tron USDT. Image
🧵2/Ω
Dune dashboard with all the historical Tether blacklist data for those two blockchains can be found here:
dune.com/queries/5342352
🧵3/Ω
#Nobitex, the largest crypto exchange in Iran (which is basically a Binance feeder fund, but I digress), openly advises its users on how to avoid sanctions via Tether USDT even though that is a blatant violation of all kinds of laws.
Read 42 tweets
Jan 29
🧿1/Ω
apparently Trump's #WorldLibertyFi wallet had a sudden huge drop off in its token holdings exactly as $TRUMP and #MELANIA were launched...

...and then right after $TRUMP weekend it suddenly had $400mm in assets despite selling <$200mm in $WLFI to JustinSun etc. Image
🧿2/Ω
full $WLFI dashboard from @seoulcalibureth:
dune.com/seoul/wlfi
🧿3/Ω
it really looks like a few days before the $TRUMP launch someone borrowed all $ETH from #WorldLibertyFi treasury, sent it to a bunch of different Coinbase accounts (sus?), and then it came back from #CowSwap trades post-TrumpCoin w/e.

also at least one peel chain. Image
Image
Image
Image
Read 12 tweets
Nov 14, 2024
they're going to transfer incredible amounts of taxpayer money into the hands of crypto bros. that's what this has always been about.
and if you think i'm exaggerating you haven't been paying attention. the taxpayer bailout of the crypto industry is already well underway.
wpr.org/news/wisconsin…
they've already drafted the federal legislation to pump most of a trillion dollars into bitcoin under the delusional fairy tale of "paying down the national debt" (lol)
lummis.senate.gov/press-releases…
Read 4 tweets
Nov 5, 2024
🧵1/Ω
Thread for those who don't have the intestinal fortitude to sit through the Elmo / Rogan interview. Image
🧵2/Ω
Both these guys seem to regard the FBI asking (not forcing) "old Twitter" to take down some tweets as a crime against humanity roughly on the scale of the Stalin's gulags.

Rogan: "We were headed down a path of censorship and of control of narratives that is UNPRECEDENTED."
🧵3/Ω
The comparison to Stalin is not my hyperbole. Later in the interview Elmo will compare NY DA Alvin Bragg to Lavrenti Beria, the head of Stalin's secret police and one of history's greatest monsters. Image
Read 59 tweets
Nov 2, 2024
🧵1/Ω
🇸🇻 Making a thread to collect some recent scattershot tweets concerning documents I dug up about El Salvador, Bukele, Volcano Bonds, Tether, etc. in one place.
🧵2/Ω
🇸🇻 Not only does LaGeo S.V. use the same auditor as Tether, it's also the geothermal power company named in Bukele's volcano bonds plan
🧵3/Ω
Tether hired a lawyer in El Salvador to handle some trademarks and other business sundries.
Read 16 tweets
Oct 30, 2024
is saylor trying to bail out the entire bitcoin market? $MSTR @crypto1nfern0
i find it at least curious that this announcement of such a massive capital raise came just a few days after we got confirmation that the Treasury Dept is considering freezing Tether's assets and the DOJ is investigating them...
3/ it's probably nothing but... $42 billion is a kind of oddly specific number for Saylor Moon to throw out
Read 7 tweets

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