Head of US DOJ crypto enforcement unit vows to take action against unreliable cryptocurrency exchanges, decentralized finance platforms, and anonymous transaction mixers.
The US Department of Justice’s national team responsible for cryptocurrency enforcement (NCET) has announced plans to strengthen its efforts in targeting wrongdoers within the crypto market, as reported by FT on May 15th.
Eun Young Choi, the newly appointed director of the cryptocurrency enforcement team, has stated that the Department of Justice (DoJ) is focusing on taking action against crypto exchanges, crypto mixers, and DeFi platforms that engage in criminal activities or facilitate them, such as enabling money laundering.
US DOJ to Crackdown on Crypto Criminals
Eun Young Choi, the Director of DOJ’s NCET, announced that the US DOJ is focusing on taking action against crypto platforms and companies involved in criminal activities, such as facilitating money laundering in the crypto market.
She has pledged to take strong action against individuals involved in illicit activities within the crypto market, as the occurrence of crypto-related crimes has notably increased in recent years.
Moreover, she expressed concern that these platforms not only facilitate criminal activities but also enable other wrongdoers to effortlessly benefit from their unlawful actions and convert their ill-gotten gains. By targeting such platforms, she believes they can have a broader impact and tackle multiple issues simultaneously.
The DOJ aims to send a strong message to crypto companies that evade regulations related to anti-money laundering and client identification. They want these entities to understand the importance of establishing robust compliance, cybersecurity, and risk mitigation measures. The New York State Department of Financial Services (NYDS) has also stepped up its efforts to crack down on crypto firms that fail to meet these necessary procedures.
The DOJ will focus on addressing thefts and hacks occurring in the DeFi sector, particularly targeting chain bridges. In recent years, the number of attacks in DeFi has been increasing, leading to significant financial losses for investors, amounting to billions of dollars.
Crypto firms flee US due to increasing regulatory crackdown
Under the Biden Administration, the DOJ’s crypto enforcement unit has become known for its strong position on cryptocurrencies compared to other global government bodies.
After the FTX crisis, regulators like the US SEC increased their scrutiny of cryptocurrency exchanges. Binance and Coinbase were specifically targeted. Binance and its CEO, known as “CZ,” faced charges from the US CFTC for breaking commodities laws and not adhering to regulations.
This information is for general knowledge only and should not be considered as advice for investing or making financial decisions.
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