Bench & Bar

SEP 2018

The Bench & Bar magazine is published to provide members of the KBA with information that will increase their knowledge of the law, improve the practice of law, and assist in improving the quality of legal services for the citizenry.

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Page 22 of 67

21 BENCH & BAR | and their lack of technical understanding from the other side. us, every law firm, attorney, and paralegal has to be cyber liter- ate in order to protect themselves and their clients against cybercrimes." Zur suggests a three-pronged approach to any firm or law- yer's cyber-security plan: (1) a protection plan to reduce probability of cyber-attacks through proper "cyber hygiene;" (2) an incident response plan to detect threats and attacks as they happen and minimize damage; and (3) a recovery plan to have reliable back-up and recovery procedures in case of a breach. 19 Finally, given the susceptibility of cryp- tocurrency itself to malicious attacks, attorneys with clients who hope to take advantage of investment opportunities in and around virtual currency markets should be equipped to counsel their clients on the potential risks. While many of those risks are beyond the scope of this article, the prevalence of crime and fraud in the world of financial technology warrants careful due diligence. ENDNOTES 1. See, Benjamin Weiser, Ross Ulbricht, Creator of Silk Road Website, Is Sentenced to Life in Prison, N.Y. Times (May 29, 2015), https:// ulbricht-creator-of-silk-road-website-is-sen- tenced-to-life-in-prison.html; Nathanial Popp, e Tax Sleuth Who Took Down a Drug Lord, N.Y. Times (Dec. 25, 2015), https://www. the-unsung-tax-agent-who-put-a-face-on- the-silk-road.html; see also, Judgment, United States v. Ross William Ulbricht, No. 1:14-CR- 00068, DN 269 (available on PACER). 2. Instructions for how to enter some dark web marketplaces can be found using a simple web search on traditional browsers, though the latest cybercrime destinations lurk beyond the depths the average internet user may be willing to plumb. See, e.g., Guide on How to Access e Silk Road 3 (3.1), https://silkroad- silk-road-3-0/. e general population likely remains ignorant of most online black markets until they are dismantled by law enforce- ment, as AlphaBay and Hansa were in 2017. omas Fox-Brewster, Forget Silk Road, Cops Just Scored eir Biggest Victory Yet Against e Dark Web Drug Trade, Forbes ( Jul. 20, 2017), ster/2017/07/20/alphabay-hansa-dark-web- markets-taken-down-in-massive-drug-bust- operation/#67c67b505b4b. 3. A record of Deputy Attorney General Rosen- stein's remarks is available at, Department of Justice, Office of Public Affairs, Justice News, Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the Emerging Frauds in the Digital Age Conference, Washington, DC, Tuesday May 23, 2017, https://www.justice. gov/opa/speech/deputy-attorney-gener- al-rod-j-rosenstein-delivers-remarks-emerg- ing-frauds-digital-age. 4. ACEDS Online, Roy Zur, YouTube (Apr. 20, 2016), watch?v=-nRwLcPxUYE. 5. Roy Zur provided comments through personal communication with the author on August 13, 2018. 6. See Richard Starnes, e Dark Net's Fraud as a Service (FaaS), CSO Online (Feb. 2, 2018), security/the-dark-net-s-fraud-as-a-service- faas.html; Cyber Criminal Forum Taken Down, Federal Bureau of Investigation ( Jul. 15, 2015), cyber-criminal-forum-taken-down; Ellen Nakashima, Major computer hacking forum shut down by 20 countries, U.S. announces, Washington Post ( Jul. 15, 2015), ttps://www. major-computer-hacking-forum-shut-down- by-20-countries-us-announces/2015/07/15/ dd4cf514-2b05-11e5-a5ea-cf74396e59ec_ story.html?noredirect=on&utm_term=. e707876562d1. 7. Council on Foreign Relations, Cryptocur- rencies and National Security, https://www.cfr. org/backgrounder/cryptocurrencies-and-na- tional-security (last updated February 28, 2018). 8. Nathanial Popper and Matthew Rosenberg, How Russian Spies Hid Behind Bitcoin in Hack- ing Campaign, N.Y. Times ( July 13, 2018), nology/bitcoin-russian-hacking.html. 9. INVESTOR ALERT: BITCOIN and OTHER VIRTUAL CURRENCY-RE- LATED INVESTMENTS, U.S. Securities and Exchange Commission, https://www. ralertsia_bitcoin.html. 10. Olga Kharif, Hackers have stolen about 14% of big digital currencies, Los Angeles Times (cour- tesy of Bloomberg) ( Jan. 18, 2018), http:// len-hackers-20180118-story.html. 11. See, supra, note 5. 12. See, AATIF SULLEYMAN, BITCOIN PRICE is SO HIGH BECAUSE CRIMINALS are USING IT FOR ILLEGAL TRADES, RESEARCH SUGGESTS, The Independent ( Jan. 24, 2018), https://www.independent. bitcoin-price-fall-criminals-blockchain-anon- ymous-cryptocurrency-zcash-mone- ro-dash-a8174716.html. A working paper on this study is available online through the Social Science Research Network. Foley, Sean and Karlsen, Jonathan R. and Putniņš, Tālis J., Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed rough Cryptocurren- cies? ( January 15, 2018). Available at SSRN: or http:// 13. See, Jason Bloomberg, Using Bitcoin Or Other Cryptocurrency To Commit Crimes? Law Enforcement Is Onto You, Forbes (Dec 28, 2017), bloomberg/2017/12/28/using-bitcoin-or-oth- er-cryptocurrency-to-commit-crimes-law-en- forcement-is-onto-you/#59ed968b3bdc; Andy Greenberg, YOUR SLOPPY BITCOIN DRUG DEALS WILL HAUNT YOU for YEARS, Wired ( Jan. 26, 2018), https://www.wired. com/story/bitcoin-drug-deals-silk-road- blockchain/. 14. See, supra, note 5. 15. See supra note 10. See also, Olga Kharif, e Criminal Underworld Is Dropping Bitcoin for Another Currency, Bloomberg ( Janu- ary 2, 2018), news/articles/2018-01-02/criminal-under- world-is-dropping-bitcoin-for-another-cur- rency. 16. See, e.g., Aaron Stanley, U.S. Secret Service: Action Needed To Address Anonymous Cryptocur- rencies, Forbes ( Jan. 20, 2018), https://www. cret-service-action-needed-to-address-anony- mous-cryptocurrencies/#3b26c8013ca1. 17. Chainalysis, 18. Cybint Solutions' Roy Zur "Lawyers are the weakest link" when it comes to cyber security, Cybint News, Cyber Solutions (Oct. 31, 2017), lawyers-weakest-link-cyber-security/. 19. See, supra, note 5. ABOUT THE AUTHOR CORINNE E. KEEL is an Assistant United States Attorney, Criminal Division, Western District of Kentucky, specializing in prosecuting financial crime. She previously worked in the office's Financial Litigation Unit, col- lecting restitution for crime victims. Prior to joining the United States Attorney's Office, she was an associ- ate at Dinsmore & Shohl, LLP. She attended the University of Kentucky as an undergraduate and received her law degree from Stanford Law School. She wishes to thank Roy Zur for contributions to this article. e views expressed in this article do not necessarily represent the views of the Department of Justice or the United States.

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