March 27, 2024
Crypto Crime on the Radar DOJ Cracks Down on Exchanges and Investment Scams 
Latest Cryptocurrency News

Crypto Crime on the Radar: DOJ Cracks Down on Exchanges and Investment Scams 

In an effort to combat the rising tide of crypto-related crimes, the US Department of Justice’s (DOJ) top official in charge of cryptocurrency enforcement has pledged to take decisive action against illicit behavior on trading platforms, as per a report by the Financial Times (FT) on Monday. 

Eun Young Choi, the director of the National Cryptocurrency Enforcement Team (NCET), revealed that the DOJ has set its sights on crypto exchanges that provide a convenient avenue for “criminal actors to easily profit from their crimes and cash out.” Choi stressed the urgency of combating crypto crime, which she claimed has experienced a significant surge over the past four years. 

Choi further specified that the department’s primary focus is on businesses that evade anti-money laundering regulations, ignore know-your-customer rules, or fail to implement robust compliance measures and risk mitigation strategies. By targeting such platforms, she expressed confidence in generating a multiplier effect, effectively curbing illicit activities within the crypto landscape. 

The NCET has also set forth its objective of intensifying enforcement measures against investment scams, which Choi characterizes as “pig butchering” schemes. These deceptive practices, reminiscent of a Chinese phrase signifying the fattening of pigs for eventual slaughter, involve scammers establishing long-term relationships with victims. 

In a recent announcement, the NCET proudly revealed the successful dismantling of six such scams, resulting in the recovery of approximately $112 million. According to the Federal Bureau of Investigation (FBI), investment fraud in 2022 amounted to a staggering $3.31 billion, with crypto-related scams alone contributing more than $2.5 billion to this total. 

Image by macrovector on Freepik

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