BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
The US Department of Justice (DOJ) announced several enforcement actions against cryptocurrency and virtual asset service providers (VASPs) involved in illicit activities and misusing digital technology to conduct financial crimes.
The DOJ is expected to launch a series of enforcement actions against the individuals and entities that use cryptocurrency illegally. These actions are due to be revealed in the coming weeks and are part of a joint effort of the DOJ and federal agencies to combat money laundering and terrorist financing. The enforcement actions will assist the regulatory authority in cracking down on the use of cryptocurrency in ransom attacks, tax evasion, and other crimes. The DOJ has been investigating various loopholes in the cryptocurrency exchange, trading, and other service provider platforms for supervising potential violations in the AML regulations and securities laws.
Previously, the DOJ arrested two Chinese citizens who were involved in money laundering of over $100 million through cryptocurrency. The two laundered money by concealing their original identities through various crypto wallets and transfer illegal funds from one destination to another. Most of the money they launder is the cryptocurrency North Korean hackers stole from virtual assets wallets. The DOJ also recovered $2.3 million worth of bitcoin from hackers in May 2021 after they hacked a US gasoline provider and caused several days’ worth of disrup tions. These scammers face civil or criminal charges, whilst other fraudsters end in a settlement with the government bodies. The DOJ’s enforcement actions against the cryptocurrency signal the commitment of Biden’s administration to combat money laundering. In recent months, significant countries have issued the latest obligations to regulate cryptocurrency and endorse fines for illegal crypto-operating wallets due to customer protection, economic environment, and financial stability concerns.
Furthermore, the DOJ created a special Ransomware and Digital Extortion Task Force, coordinating with other regional departments and international partners to investigate criminals and hold them accountable for illegal activities. The DOJ’s announcement of enforcement actions may positively impact the cryptocurrency industry and market as they assist the financial authorities in detecting individuals and entities involved in illicit activities.