In a recent announcement, the US Department of Justice’s national cryptocurrency enforcement team (NCET) stated that they will be increasing their efforts to combat illegal activities in the crypto market. The move comes as the scale of crypto-related crimes has risen significantly in the past few years, prompting the DOJ to focus on targeting bad actors in the industry.
Director of NCET, Eun Young Choi, has stated that the DOJ will be targeting crypto exchanges, mixers, and DeFi platforms that commit crimes or enable money laundering. She promises to send a strong message to those who evade anti-money laundering or client identification rules and fail to implement compliance, cybersecurity, and risk mitigation procedures.
Below are some key details on the DOJ’s intensified crackdown against crypto entities:
Targeting Crypto Exchanges and Companies that Commit Crimes
The DOJ will be focusing on cracking down on crypto exchanges, companies, and mixers that enable money laundering or commit other crimes impacting the crypto market. The aim is to deter bad actors from profiting from their illegal activities and cashing out in ways that are problematic to law enforcement.
Intensified Crackdown Against DeFi Hacks and Thefts
The DOJ will also be targeting thefts and hacks in DeFi space, especially chain bridges. The number of attacks in DeFi has been growing in the last few years, with investor losses mounting in billions of US dollars.
US DOJ: One of the Toughest Crypto Regulators Globally
Under the Biden administration, the DOJ crypto enforcement unit has emerged as one of the government bodies having the toughest stance on crypto globally. The US SEC has heightened scrutiny against crypto exchanges after the FTX crisis, with several exchanges such as Binance and Coinbase being targeted. The US CFTC also charged Binance and its CEO for violating commodities laws and failing to comply with rules.
Crypto Firms Exit US Amid Rising Regulatory Crackdown
The intensified crackdown has prompted some crypto firms to exit the US market due to the increasingly strict regulatory environment. The NYDS has also intensified its crackdown against crypto firms failing to meet compliance, cybersecurity, and risk mitigation procedures.
The US DOJ’s intensified crackdown against bad actors in the crypto industry is aimed at deterring illegal activities such as money laundering and thefts. Director of NCET, Eun Young Choi, has promised to focus on crypto exchanges, companies, and mixers that enable such crimes, sending a strong message to those who fail to implement compliance, cybersecurity, and risk mitigation procedures. The DOJ’s actions have made it one of the toughest crypto regulators globally, with some crypto firms exiting the US market due to the increasingly strict regulatory environment.