In this episode, GRIP’s commissioning editor Jean Hurley spoke with Harley Thomas, a forensic accountant and senior investigator at Martin Kenney & Co, to discuss the US crypto lawsuit – Ripple, digital assets regulation in the UK, digital currency use in illicit finance and asset tracing.

We discussed:

• The US Ripple lawsuit and why the outcome of this case will affect the future of cryptocurrency regulation in US. Also see A landmark lawsuit is sending ‘ripples’ through the world of cryptocurrency and The Ripple effect: SEC files Notice of Appeal in case against Ripple
• Other cases involving digital assets in US Courts including SEC v Terraform Labs and SEC v LBRY, which concern interpretations of the Howey Test while contributing to a broader regulatory framework that may apply to other crypto tokens in the future. Also see Terraform and CEO charged with defrauding investors in multi-billion crypto schemes.
• The UK’s Digital Assets Bill and how it will shape the ownership of crypto tokens in the UK.
• Harley’s work in asset recovery and the differences between tracing digital and assets held in traditional bank account including:
  • pseudonymity and privacy in cyptocurrencies;
  • blockchain transparency and complexity;
  • lack of central authority;
  • cross-border transactions;
  • use of mixers and tumblers; and
  • custodial vs. non-custodial wallets.
• The role of banks in tracing digital assets.
• Crypto currency and illicit finance.
• Use of AI and machine learning as an aid to asset tracing.

A transcript of this podcast is available here.