In the immediate aftermath of the Squid Game token scam, in which many crypto antagonists alluded to the lawlessness in the cryptosphere, Joseph James O’Connor, also known as PlugwalkJoe, was indicted on charges including conspiracy to commit computer hacking, conspiracy to commit wire fraud, conspiracy to commit money laundering, and aggravated identity theft as part of his role in stealing nearly a million dollars’ worth of cryptocurrency utilizing a SIM swap attack. The indictment was unsealed by the U.S. Attorney’s Office for the Southern District of New York.

“The problem with laws is they are almost always responsive in nature. We typically create laws and enforce penalties on bad behavior after a bad actor commits a bad act. That means that laws typically need to catch up to where society is, and nowhere is that more evident than in the realm of technology. Quite simply, innovators create new technologies, as well as methods for using them, faster than legislators can create legislation to protect the public. It makes sense. In order to have a law requiring seatbelt-usage, the seatbelt must first be introduced. There’s no need to create laws against texting while driving until phones have the capability to text,” explained Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges.

“Some people who have a vested interest in making sure cryptocurrency fails would have you believe that cryptocurrency is dangerous, has no practical use, and is completely unregulated. That’s simply false. Does the industry need greater regulation to prevent bad actors from engaging in chicanery? Of course. But, government is beginning to catch up with blockchain technology. They’re starting to understand how it works. And, I believe, we’re going to continue to see governments around the world creating more guidelines to keep the public safe,” said Gardner.

“To say that we’re still in the Wild West is absurd. Years ago, in the early days of cryptocurrency, there was most definitely a Wild West feel to the industry. But the sector has grown by leaps and bounds, especially over the last twelve months. Regulators understand that the technology isn’t a fad, that it is here to stay, and that it is a truly transformative innovation. PlugwalkJoe getting charged is only the latest example of somebody’s misdeeds in the crypto space catching up with them. The more criminals who are put away, the greater the risk associated with doing bad things. As risk increases, bad actors will be less likely to entertain criminal ideas. We’re at a tipping point, and the risk of getting caught is starting to catch up with the reward if successful. The more high-profile arrests, the faster criminals will realize it,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“There’s no doubt that the industry needs more work. In particular, government needs to liaise more with industry insiders. The industry wants to prevent acts of malfeasance as much as the government. It is time for both sides to work together and come up with a commonsense plan that will heighten the security around digital assets while giving innovators the ability to continue to develop the technology,” said Gardner.