The United States Department of Justice (DOJ) has taken a firm stance against the criminal misuse of cryptocurrencies and digital assets. In a recent announcement, the DOJ revealed the establishment of the National Cryptocurrency Enforcement Team (NCET) and appointed prosecutor Eun Young Choi as its first director. Choi, a former senior counsel to the deputy attorney general, brings a wealth of experience to the role.
The NCET is comprised of department attorneys with backgrounds in cryptocurrency, cybercrime, money laundering, and forfeiture. The team’s primary objective is to identify, investigate, and pursue cases involving the criminal use of digital assets. This includes targeting virtual currency exchanges, mixing and tumbling services, and other entities that enable the misuse of cryptocurrency for criminal activities.
Furthermore, the NCET will provide support and training to federal, state, local, and international law enforcement agencies in investigating and prosecuting serious crimes involving cryptocurrency and digital assets. Choi expressed her enthusiasm for leading the team, stating that the NCET will play a crucial role in combatting the illicit abuse of digital assets by criminals.
In addition to the establishment of the NCET, the DOJ also announced the creation of a Virtual Asset Exploitation Unit within the Federal Bureau of Investigation (FBI). This specialized unit, staffed by cryptocurrency experts, will provide analysis, support, and training to the FBI, as well as innovate cryptocurrency tools to stay ahead of future threats.
The formation of the Virtual Asset Exploitation Unit follows a recent milestone for the DOJ, with the largest-ever financial seizure of Bitcoin worth $3.6 billion. The DOJ confiscated the cryptocurrency on suspicion that it was stolen in the 2016 hack of the digital currency exchange Bitfinex. A married couple from New York was arrested and charged in connection with the Bitfinex heist, facing charges of conspiracy to commit money laundering and conspiracy to defraud the United States.
Overall, the DOJ’s crackdown on the criminal misuse of cryptocurrencies underscores the government’s commitment to ensuring the integrity of the digital asset space. With the establishment of the NCET and the Virtual Asset Exploitation Unit, law enforcement agencies are equipped to tackle the evolving challenges presented by cryptocurrency-related crimes effectively.