New Delhi: According to reports, the United States cryptocurrency enforcement body is intensifying its efforts to combat illicit activities on crypto exchanges. Eun Young Choi, the National Cryptocurrency Enforcement Team (NCET) director at the Department of Justice (DOJ), stated that they are targeting cryptocurrency companies involved in criminal activities or those that enable crimes like money laundering to occur. Choi expressed concerns that these platforms allow other criminal actors to easily profit from their illegal actions and withdraw funds in ways that raise obvious concerns for law enforcement.
By concentrating its efforts on these types of platforms, the DOJ aims to achieve a multiplier effect in combating cryptocurrency-related crimes. In a notable case from March, the DOJ charged Minh Quoc Nguyen, a Vietnamese national, with money laundering and identity theft in connection with the operations of the crypto platform ChipMixer. The department accused Nguyen of openly disregarding financial regulations.
The DOJ intends to expand its scrutiny of crypto firms as part of its novel crackdown, seeking to send a clear message to businesses that have managed to evade anti-money laundering and client identification requirements. The focus will be on companies that fail to prioritize compliance and implement robust risk mitigation procedures. Choi emphasized that the size of a company will not deter the department from pursuing potential charges.
Moreover, the Justice Department plans to address crimes associated with decentralized finance, with particular attention given to “chain bridges.” These bridges facilitate the exchange of different types of digital tokens and may be vulnerable to attacks. The DOJ will also closely monitor nascent projects with code vulnerabilities that could be exploited for illegal activities.
Through its heightened scrutiny and targeted actions, the U.S. cryptocurrency enforcement agency aims to enhance deterrence and ensure that crypto exchanges operate within the boundaries of the law. By targeting both criminal activities on these platforms and vulnerabilities in decentralized finance, the department seeks to safeguard the integrity of the financial system while promoting compliance and risk management in the crypto industry.