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DOJ launches task force to combat the illicit use of crypto

DOJ

TL; DR Breakdown

  • DOJ sets up a task force to combat illicit crypto use
  • The task force will oversee investments and individuals
  • The United States continues to intensify crypto regulations

Undoubtedly, cryptocurrencies have become one of the most sought-after instruments in the financial sector. This is mainly because of its profit-generating prowess over a short period. But despite that, the activities of malicious actors in the sector make it very risky for traders and crypto investments. In tackling the actions of malicious actors in the United States, the DOJ has set up a new task force that will combat individuals that use crypto for illegal purposes.

The DOJ task force will oversee investments and individuals

According to a memorandum sent from the White House, the United States government has established a five-point plan to combat terrorist acts. This is where the new task force that the DOJ has set up will fall under. Putting it into context, the task force will be responsible for the arrest and prosecution of any individual suspected to have carried out illicit activities with the use of digital assets.

Also, the United States government said it would unveil a new framework that regulators will follow when prosecuting these offenses. The memo mentioned that the task force, National Cryptocurrency Enforcement Team, will be saddled with overseeing investigations on the misuse of digital assets.

The United States intensifies its crypto regulation

The new DOJ task force will act as the oversight for crypto exchanges and other crypto-related investments. With this, they would need to regularly follow activities to capture those that err on the side of the law. The DOJ has also granted the task force the authority to subpoena records of suspected criminals even if the records are not within the state.

The new memo said whistleblowers would be incentivized as long as they continue to share important information that could help them apprehend suspects. In line with the views of the state government, the chairman of the financial committee, Maxine Walters, will hold a meeting with the head of eight crypto exchanges across the country. In the meeting, they would discuss issues relating to the future of the country’s financial industry. Some of those that would attend the meeting include FTX’s Sam Bankman-Fried, and Coinbase boss Brian Armstrong.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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