Department of Justice Establishes New Cryptocurrency Team

Deputy Attorney General, Lisa O. Monaco has announced the establishment of the National Cryptocurrency Enforcement Team (NCET). The group will comprise cybersecurity and anti-money laundering experts drawn from across the Department of Justice.

Their mission will be to handle criminal cases involving cryptocurrency exchanges. They will also pursue the recovery of assets lost to ransomware attacks, and investigate the misuse of cryptocurrency platforms to protect customers.

No room for criminals to profit

In her remarks, she noted that the goal was to strengthen the department’s capacity to tackle structures that allow criminal elements flourish.” Speaking at the Aspen Institute Cyber Summit, she said the team would gear up to stop the criminal actors from profiting from the abuse of the cryptocurrency system.

She said, “As the technology advances, so too must the Department evolve with it so that we’re poised to root out abuse on these platforms and ensure user confidence in these systems.” Monaco pointed out that if virtual currency exchanges were to become the bank of the future, people must have confidence in using them.

The formation of the team will complement MLARS’s Digital Currency Initiative. The operations will also be undergirded by the Department’s Cryptocurrency Enforcement Framework published in October 2020.

According to the DOJ announcement, the group will be supervised in the interim by Assistant Attorney General Kenneth A. Polite Jr. This is even as the Justice Department continues a search for someone to lead the team.

DOJ Success

As recently as June, the Justice Department successfully recovered $2.3 million in cryptocurrency paid to ransomware extortionists. This is significant given the rise in the spate of ransomware attacks globally

Monaco pointed out that the department’s current attempts to enforce the law with relation to cryptocurrency are no different from its past actions to protect customers and investors in the securities market.

Noting criminal action initiated against fraud and insider trading, Monaco said, “We’ve been enforcing securities laws for decades.” Now, the approach is just evolving with the technology.