National Cayman Bank hacker leak – new details about crypto exchanges and crypto exchangers

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Past materials on the topic:

National Cayman Bank hacker drain - what's interesting about cryptans?

BitStamp —Forex, washing and dope ... Or is it a cryptocurrency exchange?

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Category “Fascinating documents, most likely leaked by Russian hackers to the Hunter Memorial Library.” Part four.EXOTIC. Letter from Kenyan crypto exchange BitPesa to Cayman National Bank and Trust requesting the opening of a bank account for its fiat deposit/withdrawal operations.

"Bitpesa Limited is a subsidiaryMaternal Bitpesa Kenya. Bitpesa Kenya provides an international service for exchanging bitcoins for fiat currencies - receiving bitcoins from individuals and making payments in Kenyan shillings to recipients. This is no different from what Western Union does, but only for digital currencies.

Bitpesa Kenya owned by the parent companyBTC Africa (registration in the Cayman Islands), which in turn includes a subsidiary of the British company Bitpesa UK Limited (Bitpesa UK) - it provides treasury functions for Bitpesa Kenya.

Today Bitpesa Kenya has stock tradingBitcoin accounts on Bitfinex and ANX from Hong Kong. She uses these two exchanges to sell bitcoins, which she receives from her users, and then transfers the money in fiat to Kenya to the Bitpes account in a local bank.

Our goal.

BitStamp and Safello European cryptocurrency exchanges do notWe are ready to make money transfers directly to Kenya, but they may well do so in a European bank account. In addition, the goal of Bitpesa Gtoup is to diversify that set of crypto exchange partners and open trading accounts in Europe. Accordingly, Bitpesa UK will manage these accounts for the benefit of the Bitpesa Group.

Now the specifics:

1. Bitpesa UK wants to open accounts on Bitstamp, Safello or the like in Europe.

2. Bitpesa UK needs a European bank account for withdrawals from crypto exchanges

3. Bitpesa UK will transfer the withdrawn funds to Bitpesa Kenya accounts (this will cost 3% of the commission for treasury services within the group of companies)

4. The volume of monthly transactions is planned in the amount of 10-100 thousand dollars."

By the way, the same Adam Vaziri, well known to us from the Bitfinex case, was involved in opening the account on Bitpesa’s part.

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Parts of the fifth and sixth.Just in line with the fifth EU Directive, which will make your life much more difficult in accepting dirty bits from shady characters.

LETTER OF REQUEST dated July 15, 2014.A certain Jim Ohara ([email protected]) writes to Lee Penrose from Cayman National Bank (Isle of Man branch), whom you already know from the Bitfinex and BitStamp cases, for which he was supposed to open bank accounts, slightly turning a blind eye to KYC/AML.

"Hi Peter! I hope you all are well!

I talked to you last week at the Bitfin conference in Dublin about using your banking services. Below is a brief description of the layout that I have now.

I've been trading Bitcoin for about 14 months now.various cryptocurrency trading sites, mainly LocalBitcoins and Bitstamp. It's mostly about selling Bitcoin and a little bit about long-term trading and arbitrage. I trade on Localbitcoins under the name Oscarjames, which is also the name of my companies.Oscarjames Ltd() (Ireland) andOscarjames (UK) Ltd. I guess I'm the biggest trader onLocalalbitcoins in terms of turnover over the past 12 months is something around 4.5 million pounds (of which 80% in pounds, 20% in euros). Turnover for the next 12 months is planned to increase to 6-10 million. This may not be the size with which some startups go to the same Bitfin, but I’m a plus and I work with profit.

Besides the various business benefits thatgives Isle of Man, I'm definitely interested in banking. Now I am experiencing problems with entering into a long-term partnership with a bank, despite the fact that the main banks [in the United Kingdom - approx.] Do not work with companies doing business around bitcoin. Currently, I am serviced through Danske bank UK and Santander Bank.

Santander is pleased to offer me bankingservice for my bitcoin business, but their online banking is somewhat primitive and not suitable for quick payments to my new customers because of their security measures. Their online banking, I would say, is generally more suitable for entrepreneurs or small traditional businesses. In turn, a couple of months ago, Danske bank announced that it would not conduct banking services for companies related to bitcoin, and gave me 2 months to close my account on August 10th. At the same time, Danske's online banks are simply excellent - you can make quick payments and transfers of large amounts, there are full reports on outgoing payments and complete information about the account and client for incoming payments, which greatly simplifies the verification of my customers.

Please tell me if you can offerbanking services for this type of business as described above. I will definitely need a British bank account and sort code (bank and branch identifier), as well as the ability to quickly receive and send payments in volumes ranging from 100 pounds to 30,000 pounds. If you can also offer a checking account in euros, then it will be interesting, although in general it is not so critical without it. I would like to visit the Isle of Man next week or in a week to talk in essence and arrange a service at your bank. I myself am from Northern Ireland (I live there), so it’s not a problem for me to fly [the island is in the Irish Sea at about the same distance from England, Ireland, Scotland and Wales - approx.]. I think I will send my family for a few days on vacation, so that we will have enough time to organize meetings.

Give me what and how I will need to do and what extra. you still need infa from me to be properly prepared for a visit to you. Thanks in advance.

James Ohara. 07961539850"

CONTINUATION OF THE TALK. Again Jim Ohara and again Lee Penrose from Cayman National Bank and Trust Company (Isle of Man) Limited. Jim Ohara, after a response letter from Lee, in which, in addition to long formalities and verbosity, was an invitation to meet in person, he wants to specify a number of things in advance:

"Thank you Lee for the answer! We are interested in long-term and mutually beneficial cooperation with the Isle of Man and your bank.

I think it would be good to understand in advance whatthe requirements will be from the Isle of Man Financial Supervisory Commission (IOM FSC) and whether I can meet them. I understand that FSC has issued a press release saying that they will review section 4"The act against the proceeds of crime" from 2008to add virtual currencies there. A number of conference sources told me, as a dealer at LocalBitcoins, that the AML obligation is on the site itself and not on the particular seller. Personally, I am not sure that such an explanation will be accepted with understanding. However, now I get the ID [passport data or other identification document - approx.] Of buyers in any case. Accordingly, almost any user can make a purchase of up to 200 pounds without presenting an ID one-time or with a series of small purchases within 2 weeks. The main reason I require customer IDs is to verify that the payment account belongs to a specific person, but, of course, this procedure is easy to “twist” according to FSC compliance requirements.

I contacted the Bitcoin Incubator on the Isle of Man inin the hope that they will tell you something about the basic requirements of this jurisdiction. I also contacted Peter Greenhill, but for now I am waiting for an answer from him.

Localbitcoins transactions themselves are conducted usingthe internal escrow system, so the client’s funds and the corresponding amount in bitcoins in it are stored and blocked. Capital requirements in this case, I believe, will be closer to the "floor". Usually we have about 300-500 bitcoins and from 10K to 100K pounds in the cache in our bank account. Over the past 2 quarters, sales totaled approximately 1.2 million pounds with a yield of approximately 4%, taking into account costs and commissions (but before taxes). The last two quarters also had a bear market, so volumes and margins were low. In the bull market, as last November, turnover tripled, and margin doubled.

In general, I hope to move on and get clarification from the FSC. We are happy to accept any advice or recommendations to assure the trustworthiness of the FSC and the bank itself.

I personally see that my business will provide goodprofit in the short and medium term. On the long-term, I expect that greater benefits will be obtained from ownership of bitcoins [that is, due to the growth of the exchange rate - approx.] Than from retail sales. I must say that Bitcoin is a fascinating field of activity with great potential and huge potential. It's just that he is still very young.

The next or in one week I can arrive for a couple of days - I think that this will be the best option to resolve issues promptly.

Thanks James"

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Parts of the seventh and eighth.Presentation by Pay2Bit (pay2bit.com) dated April 30, 2014. With a bomb inside about Bitfinex and BitStamp.

But first, let's figure out what was funny inpresentations of the exchanger / crypto-exchange / Pay2Bit payment (hell knows what happened there, the office is now dead), because there were plenty of loots in the classic cryptan style "I’m a mom from a businessman, here’s my businessman, I’ll take over the world soon." Seriously, people send a 4-page business plan to the bank at Cayman National Bank asking them to open a bank account. No, I understand that the bank itself is still a garbage dump, but 4 pages is disrespect even for him.

Yes, before I forget. The author of the letter with the presentation: a certain Mikael More ([email protected]).

So what Pay2Bit wanted:

- fast transactions without any questions anddelays via SWIFT from/to a Pay2Bit bank account in an Icelandic garbage bank (after the well-known financial crisis in Iceland, all of them can be considered garbage banks) Borgun (https://www.borgun.com/). Which, by the way, has branches in 6 countries, including the UK.

— IBAN for low-cost payments in euros

— Stable turnover through a bank account of $1 million per month (apparently the Icelanders gave them a ride with this)

What he wrote about himself in April 2014:

— They do not trade in the USA or with US citizens, due to regulations and KYC/AML

— At the same time, we accepted bitcoins from individuals through bitcoin ATM in Austin, Texas. No, but what?

— Our own market (crypto-fiat exchange, presumably) was estimated at $12 million per month, with a 10-fold growth prospect.

— The total bitcoin-fiat exchange market was estimated at $2 billion per month

— KYC was limited to the requirement to send a passport photo and verification of the credit card number.

Karoch, “business plan” - ooooookkkk. But the most interesting was waiting for us in paragraph 4.

And in paragraph 4, patients from Pay2Bit gave examples of crypto exchanges at the beginning of 2014 - who had current accounts opened where. ATTENTION!Bitfinex –Shanghai Pudong Development Bank. Bitstamp - Multibank Slovenia. I was in Slovenia in the summer and I don’t remember such a bank. But there is a big oneforex officeMultibank Financial Group (which hasheadquarters in Panama - where Bitfinex technical equipment is located), and which SUDDENLY was sold to the COLOMBIA Grupo Aval in 2019. Now remember the article about Bitstamp in Cryptocritic. It’s a beautiful picture, right?

But let's return to that same Mikael (Mikael More) and Pay2Bit.

Firstly, the future founder of the Bit2Pay cryptocurrency exchange has long been well acquainted with Lee Penrose of Cayman National Bank.

Here is a letter dated April 26, 2012, where Mikael More wishes Penrose a happy birthday:

"Happy Birthday Lee! We wish you lots of joy and cheer for the coming year! Mikael and gabriela"

And the recipient's address was this: [email protected]

Accordingly, the company in the game is HL Fiduciaries Limited, where Lee Penrose was the director of development. Company specialization: "an Isle of Man based corporate services providerand offshore trust company that specializes in the provision of company administration and offshore trust services to assist both private and corporate clients with their offshore tax planning to achieve the most tax efficient structure". That is, offshores, trusts and tax optimization. The company closed and surrendered its license in 2013.

But the letter dated September 21, 2012, Mikael wants to get a meeting with Lee to tell him what exactly interesting things are brewing.

"Dear Lee, I trust you are well. Just very briefly to check, are you on IoM or in London as usual the next couple of days? There is a couple-of-percent chance that something is coming up so just interested to know. Thanks and kind regards, Mikael"

Well, then there was a letter dated April 14, 2014, where Mikael announces Pay2Bit and throws bait about banking services.

"I will soon launch a service where ordinary people will be able to buy bitcoins using Visa or Mastercard cards on the Internet. You can watch the pre-release version via the closed link: www.pay2bit.com/index_new

Most of what is already in stock: There is already an international merchant account for processing by card, liquidity for operations is available, technology is becoming more mature, and this type of business is not subject to licensing in the whole country, so from this side I have a green light.

However, in my experience, here is sensitivemoment: use of a corporate bank account. There are many multimillion-dollar companies around Bitcoin in different countries, so I have a list of a dozen banks that can handle such accounts. However, opening such an account for such operations is extremely hemorrhoids.

At the same time, with a margin of 1% and monthlyturnover of about $ 1 million, it is absolutely necessary to clearly resolve the issue with a bank account in order to avoid a surprise change in the bank or suspension of payments.

… .

I suppose my questions are entirely in your area of ​​responsibility, or you can ask some old bank colleague:

- Can you confirm that you will be able to open me a similar bank account for this type of business as part of my corporate service package?

The bottom line: the money comes from a bank that provides acquiring (processing) of card payments, which transfers funds via SWIFT to a corporate bank account in Europe, and company payments are transferred via SWIFT to the Bitcoin exchange, which functions as a trading house outside the EU.

— The question is more complicated, and I must ask you to tell me who on the Island can clarify this:

Banking operations should work with the EU as withtarget market. Accordingly, sales in the EU should either be exempted from VAT, or VAT should be at a zero rate. Is it true that selling bitcoins falls under this condition if transactions come from the Isle of Man?"

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Part Nine.

BitNet presentation to Cayman National Bank, July 28, 2014, via email from Stephen McNamara ([email protected]) to Lee Penrose. ([email protected])

This crypto startup / crypto exchangewill be finally sold in 2016 to its investor, the Japanese corporation Rakuten, as an experimental laboratory to study the application of blockchain in business.

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Part ten.

Cryptofund / Cryptoexchange / Venture fund andother junk all rolled into one in the form of The HertFord Group. Here is their presentation from June 10, 2014, sent to Lee Penrose (Cayman National Bank) and his colleague Allan Donnelly ([email protected]).

It looked like a great dump even then.Stated as audited KPMG - ШТОООО ???. Cryptans, such cryptans - what now, what 5 years ago. They lie, they’ll take it inexpensively.

However, quite quicklyTrash crypto conglomerate Hertford rebrands as Coin Capital. Email dated August 19, 2014 from Lee Penrose (Cayman National Bank) to Simon Denham ([email protected]).

In the screenshots, a curious bank questionnaire with personalSimon’s data and freehand edits. In the letter, the banker also asks the future cryptocapitalist not to send garbage (i.e., a presentation for hamsters) instead of a normal business plan.

"When we originally discussed the Hertfordproject, I mentioned that we would need a business plan outlining what the company intends to do and the timing, level of transactions, volumes and characteristics of its ’business. The document you did send through was a useful brochure for the prospective business but doesn’t really cover these issues."

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Part eleven.BTC China and Bobby Lee are looking for a safe haven whereregulators do not have the brains for cryptans for KYC / AML, and where you can calmly open a bank account in order to drive murky transactions of a murky crypto exchange. Letter dated July 8, 2014 to Peter Greenhill of Lee Penrose Cayman National Bank.

"Hi Peter, It was good meeting you at the BitFin conference in Dublin. I'm glad that Steve at GoCoin introduced you to me.

As discussed, we’re looking into utilizingthe Isle of Man as a resource, to help us with regulatory compliance. BTC China is a Bitcoin Exchange based in Shanghai, China. We’re looking to open bank accounts in regulatory-friendly countries, with full AMY/KYC compliance.

I'll be in London on Wednesday morning(tomorrow) for the CoinSummit conference, staying until Saturday. Would you be around in London this week? Alternately, I can come over to the Isle of Man after the weekend, if necessary.

thanks, Bobby

—-

Bobby Lee, CEO and Co-Founder, BTC China

+86 137-6469-1788, [email protected]"

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Part twelve.

Crypto Next (now providing enginesWhite Label crypto exchanges and their lawyers from Dohle Corporate Trust are also eager to open a bank account with Cayman National Bank in September 2014. And since CryptoNext was still a very young startup at that time, the bank asked them for a business plan. Comrades Jews, I must say, prepared much better than typical cryptans.

Cast:

Lee Penrose (Cayman National Bank)

Danilo Santanatoglia / Danilo Santanatoglia (Dohle Corporate Trust), [email protected]

Paul Swindale (Dohle Corporate Trust), [email protected]

Pat, Crypto Next Director of Development, [email protected], +1 323 686 3359, +44 870 471 5733, +972 53 721 1383

Asaf Azulay / Asaf Azulay (Crypto Next), [email protected]

Sharon GreenBerg (Crypto Next), [email protected]

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By the way, if you're wondering how much it costIf you want to use the services of Cayman National Bank (Isle of Man) in 2014, here is the price list. Suddenly you become interested in trusts or opening an account in an offshore zone.

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Topic "Fascinating documents, most likely merged by Russian kulkhackers on the Hunter Memorial Library." Part thirteen.Romanian Danciu Alexandru - co-founder of LocalBitcoins or a regular denomination for opening a legal entity in the UK?

Letter dated October 28, 2015from the user neteller trading ([email protected]) to the address of Steve Smith ([email protected]) from the scandalous office Formations House, about which there is now a whole investigation by OCCRP called “29Leaks”.

The most interesting thing is not in the letter itself, whichconsists of "the name should be LOCALBICOINS PLUS LIMITED (no spaces in ‘LOCALBITCOINS’), documents attached" and in the original request from Steve Smith.

"Dear Danciu Alexandru Mar

Thank you for your order for UK company formation ‘ LOCALBITCOINS PLUS LIMITED’.

Please assist us in completing due diligence by providing color scan copies of the following documents for company director ‘Mr Danciu Alexandru‘.

1. Proof of ID - Valid Passport

2. Proof of Residential Address - Last 3 months utility bills (water OR gas OR electricity) or latest personal bank / credit card statement. (Please do not send telephone, mobile, tv or internet bill, these are not acceptable.)

If the documents are not in English then you need to have them translated and notarized. And send original and translated copies.

COMPANY NAME CONFIRMATION:

Please confirm you wish to register the company name:

—LOCALBITCOINS PLUS LIMITED (no space between ‘LOCALBITCOINS’)

or

— LOCAL BITCOINS PLUS LIMITED (space between ‘LOCAL’ and ‘BITCOINS’)

Please provide us with above mentioned documentsand confirmation for company name as soon as possible so that we can further proceed with your application. If you require further information or assistance you can contact me at [email protected] or [email protected] or 0044-(0)207-016-2727 Monday to Friday 10am to 6pm GMT.

 

Regards, Steve Smith

FORMATIONS HOUSE"

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Original post: https://zen.yandex.ru/media/id/592d3ad87ddde88dbd5af2da/hakerskii-sliv-national-cayman-bank-novye-podrobnosti-pro-kriptobirji-i-kriptoobmenniki-5dfb829743fdc000b2d1fd0e

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