US DoJ Goes After Rogue Exchanges As Crypto Crimes Grow ‘Significantly’
15 Mai 2023 - 11:00AM
NEWSBTC
Eun Young Choi, the first director of the National Cryptocurrency
Enforcement Team (NCET), has told reporters that crypto-related
crimes have risen significantly in recent years. Through her team,
the United States Department of Justice (DoJ) now plans to go after
rogue exchanges that knowingly allow criminals to launder money.
NCET Wants Exchanges To Be Compliant The Financial
Times reports that Choi is concerned about the spike in
crypto-enabled crimes and is setting their eyes on cryptocurrency
exchanges, mixers, and tumblers. Open-source token mixers
such as Tornado Cash, a protocol that United States authorities
have already sanctioned, are widely used by criminals to launder
stolen assets. Because they make it hard for authorities to trace
transactions on public ledgers, hackers are actively exploiting
these tools to obfuscate transactions and evade justice. Related
Reading: Binance, Coinbase Bitcoin Reserves Fast-Dropping, Is This
Bullish? NCET and the DoJ will go after crypto companies that,
though compliant with existing laws on paper, have allowed
themselves to be used by criminals; a development that Choi says is
“problematic”. By targeting these rogue agents, the director said
they would send a “deterrent message” and hope their involvement
would have a multiplier effect. Specifically, NCET seems to
have a problem with cryptocurrency exchanges that skirt anti-money
laundering rules and those which don’t comply with
know-your-customer (KYC) laws. The enforcement team says going
after them could make them invest more in risk-mitigation
procedures and comply more with existing rules. Binance, the
world’s largest cryptocurrency exchange, is reportedly one of the
exchanges on the radar of the DoJ. Unconfirmed reports suggest that
the DoJ, among other agencies, including the United States
Securities and Exchange Commission (SEC), is investigating the
Changpeng Zhao-led exchange for violating established rules. Total
market cap sits above $1.1 trillion | Source: Crypto Total Market
Cap on TradingView.com US Government’s Position On Crypto President
Joe Biden’s administration has taken a relatively tough stance on
cryptocurrencies. Regulators in the United States have been in
recent months going after companies they deem to be non-compliant,
especially after the collapse of FTX, a cryptocurrency exchange.
The position adopted in the United States, especially on regulation
and enforcement, could be one of the strictest in the world.
Several officials and policymakers in the country strongly believe
cryptocurrencies can pose a significant risk to the stability of
their financial infrastructure, which could also impact national
security. In that regard, steps have been taken to increase
oversight and, most importantly, double down on regulation of the
cryptocurrency scene. Related Reading: Former DoJ Kennedy Jr,
Laments on Global Financial Censorship, Shows Support For Bitcoin
NCET, of which Choi is the first director, was created in
October 2021. A department under the DoJ, the team goes after
entities, including individuals that misuse digital assets, flout
established anti-money laundering rules, or engage in ransomware
attacks using cryptocurrencies. Feature From Canva, Chart
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