US Department of Justice cryptocurrency unit enforcement authority promises a crackdown on illegal behavior on crypto digital platforms, saying the scale of crypto crimes has increased “significantly” over the past four years.
US Will Increase Pressure on Cryptocurrency Exchanges More
Eun Young Choi, who was appointed director of the agency’s national cryptocurrency enforcement team last year, said the Ministry of Justice is targeting crypto exchanges with “scramblers and spinners” that disguise traces of transactions.
Choi said the Justice Department is targeting companies that have committed crimes themselves or that allow crimes to be committed, such as enabling money laundering.
“But on top of that, they allow all other criminal actors to easily profit from their crimes and make money in ways that are clearly problematic for us,” he said.
Choi said the focus on platforms will “send a dissuasive message” to businesses that bypass anti-money laundering or customer identification rules and don’t invest in robust compliance and risk mitigation procedures.
Choi is the Ministry of Justice’s first authority on cryptocurrencies. As the United States, under Joe Biden, has emerged as one of the toughest crypto jurisdictions worldwide, he heads a new unit focused on the misuse of digital assets.
Choi also said: “We see that the scale and scope of various illicit uses of digital assets have increased significantly over the past four years.”
“I think this is happening simultaneously with the increase in public adoption of digital assets.”
Choi’s comments come after the crypto industry was rocked last year by the collapse of exchange FTX, which is often perceived as a solid player in a volatile industry.
Sam Bankman-Fried, founder of FTX, faces charges including bank fraud, money laundering and conspiracy to violate campaign finance laws. He denied all the charges against him.
Washington also targeted Binance, the world’s largest crypto exchange. In March, the US futures watchdog sued the company and its CEO, Changpeng Zhao, for illegally operating in the country.
The exchange said it has no official headquarters and does not serve US customers.
*Not investment advice.
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