US DOJ increases cryptocurrency scrutiny

The DOJ will tighten down on cryptocurrency platforms like exchanges, mixers, and tumblers that allow criminal actors to commit their crimes, according to a Financial Times story from May 15 that quoted Eun Young Choi, the director of the national cryptocurrency enforcement team.

The Department of Justice (DOJ) is stepping up its efforts to launch a relentless pursuit against illegal activity.

The director of the unit led the charge and promised to take stern action against illegal activity taking place on digital platforms.

In a recent interview that was published by the Financial Times on Monday, Eun Young Choi, the director of the DOJ’s National Crypto Enforcement Team (NCET), emphasized the significant increase in crypto-related criminal occurrences over the previous four years.

She discussed how the agency focuses on preventing illicit activity related to cryptocurrency exchanges. As part of this, exchanges that participate in illegal activity or help to commit crimes like money laundering are addressed.

Since taking over as head last year, Choi has shown a clear commitment to putting these exchanges at the top of the agency’s list of priorities for maintaining law and order in the cryptocurrency business.

According to Choi, placing such a strong focus on compliance and risk management would act as a deterrent to companies who flout anti-money laundering or client identification laws while investing in these areas. She didn’t mention any specific people.

A giant among cryptocurrency exchanges, Binance, has come under fire for allegedly engaging in illegal business with the US. In the meantime, Brian Armstrong, CEO of Coinbase, suggested that if regulatory frameworks don’t change, the exchange’s administrative headquarters could relocate outside of the US.

The DOJ established the NCET in October 2021 to combat the cryptocurrency underworld. Its goal is to fight cybercrime, money laundering, and other offenses linked to cryptocurrencies.

The government will not take a company’s size into account when determining potential charges, according to Choi, who claims that the broad acceptance of digital assets has gone hand in hand with their criminal usage.

The DOJ’s crypto branch is prepared to take stern legal action against investment frauds in addition to exchanges. According to the Financial Times (FT), which cited FBI victim reports, the amount of money lost to these fraudulent schemes increased dramatically from approximately $900 million in 2021 to over $2.5 billion last year, prompting the need for precautionary measures.

The DOJ seized almost $112 million in cryptocurrency fraud in April, which is also known as “pig butchering.”

I am Vishal. I post articles about the cryptocurrency markets. I'm pursuing a BBA degree. My home is in Navi Mumbai, Maharashtra.I'm constantly interested in new advancements in this industry and I learn something new about it every day. I would love to share such information with you all.

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