In short: The US Department of Justice's National Cryptocurrency Enforcement Team (NCET) will target exchanges, mixers, and tumblers helping criminals conduct crypto-related crimes such as money laundering, said Eun Young Choi, NCET's director. Though existing laws are in place, some companies have allowed themselves to be used by criminals, such as mixers and tumblers like Tornado Cash, she said. The DoJ and NCET hope to make it unattractive for exchanges to skirt anti-money laundering rules or those that don't comply with know-your-customer laws, she added. The action is part of a wider US strategy to regulate cryptocurrencies.
Our quick analysis:
Eun Young Choi, the first director of the National Cryptocurrency Enforcement Team (NCET) under the United States Department of Justice (DoJ), recently spoke out about the surge in crypto-enabled crimes. Her team is taking action by going after rogue exchanges that knowingly allow criminals to launder money.
It seems like open-source token mixers such as Tornado Cash, which have already been sanctioned by US authorities, are widely used by cybercriminals to launder stolen assets. The use of these tools makes it challenging for authorities to trace transactions on public ledgers, allowing hackers to evade justice.
Choi and the NCET are aiming to deter criminals by targeting cryptocurrency exchanges, mixers, and tumblers. While many exchanges may appear compliant on paper, they have allowed themselves to be used by criminals, which Choi says is “problematic.”
The director hopes that by targeting rogue exchanges, the DoJ will send a message that will deter others and encourage them to invest more in risk-mitigation procedures and compliance measures.
One such exchange that is reportedly on the radar of the DoJ is Binance, the world’s largest cryptocurrency exchange. Unconfirmed reports indicate that the DoJ, along with other agencies like the United States Securities and Exchange Commission (SEC), is investigating Binance for violating established rules.
The US government’s position on cryptocurrencies is relatively strict, with regulators actively going after companies they deem non-compliant. Officials view cryptocurrencies as a threat to the stability of the financial infrastructure, which could impact national security.
The creation of NCET in October 2021 provides a department under the DoJ that goes after entities and individuals that misuse digital assets, flout established anti-money laundering rules, or engage in ransomware attacks using cryptocurrencies.
It’s good to see the government taking action against crypto-related crimes, giving law-abiding citizens a sense of security when dealing with digital currencies. Hopefully, these measures ensure that rogue exchanges are held accountable for facilitating criminal activities and ultimately make the entire crypto scene safer for everyone.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
Eun Young Choi, the first director of the National Cryptocurrency Enforcement Team (NCET) under the United States Department of Justice (DoJ), recently spoke out about the surge in crypto-enabled crimes. Her team is taking action by going after rogue exchanges that knowingly allow criminals to launder money.
It seems like open-source token mixers such as Tornado Cash, which have already been sanctioned by US authorities, are widely used by cybercriminals to launder stolen assets. The use of these tools makes it challenging for authorities to trace transactions on public ledgers, allowing hackers to evade justice.
Choi and the NCET are aiming to deter criminals by targeting cryptocurrency exchanges, mixers, and tumblers. While many exchanges may appear compliant on paper, they have allowed themselves to be used by criminals, which Choi says is “problematic.”
The director hopes that by targeting rogue exchanges, the DoJ will send a message that will deter others and encourage them to invest more in risk-mitigation procedures and compliance measures.
One such exchange that is reportedly on the radar of the DoJ is Binance, the world’s largest cryptocurrency exchange. Unconfirmed reports indicate that the DoJ, along with other agencies like the United States Securities and Exchange Commission (SEC), is investigating Binance for violating established rules.
The US government’s position on cryptocurrencies is relatively strict, with regulators actively going after companies they deem non-compliant. Officials view cryptocurrencies as a threat to the stability of the financial infrastructure, which could impact national security.
The creation of NCET in October 2021 provides a department under the DoJ that goes after entities and individuals that misuse digital assets, flout established anti-money laundering rules, or engage in ransomware attacks using cryptocurrencies.
It’s good to see the government taking action against crypto-related crimes, giving law-abiding citizens a sense of security when dealing with digital currencies. Hopefully, these measures ensure that rogue exchanges are held accountable for facilitating criminal activities and ultimately make the entire crypto scene safer for everyone.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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Please, behave!