The Federal Bureau of Investigation (FBI) has set up the National Cryptocurrency Enforcement Team (NCET), a cryptocurrency-focused unit that will work closely with a new team at the Department of Justice to dismantle online criminal activities.
The Federal Bureau of Investigation (FBI) has set up a cryptocurrency-focused unit, the National Cryptocurrency Enforcement Team (NCET) to work closely with the US Justice Department.
Eun Young Choi, director of NCET said the team will focus on tracking and seizing funds linked to illicit activities. Choi, an experienced prosecutor will work with the FBI’s new virtual asset exploitation unit, a specialised team of cryptocurrency experts and will provide analysis, support and training across the bureau.
Criminals held $11 billion worth of illegal funds in 2021, up from $3 billion in 2020
According to blockchain analysis company Chainalysis Inc., criminals held $11 billion worth of funds from known illicit sources at the end of 2021, up substantially from $3 billion at the end of 2020.
The DOJ recently charged a couple from New York for allegedly laundering bitcoins worth $4.5 billion, which was linked to the 2016 hack of the digital currency exchange, Bitfinex.
Choi said, “The department has been at the forefront of investigating and prosecuting crimes involving digital currencies since their inception”.
“As the technology surrounding digital asset grows and evolves, the department accelerates and expands its efforts to combat the abuse of criminals. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority of the department," she added.
The NCET will enhance the criminal division’s existing efforts to provide support and training to federal, state, local and international law enforcement to build the capacity to investigate and prosecute serious crimes involving cryptocurrency and digital assets in the United States and around the world.
The NCET will work on the department’s cases that involve the criminal use of digital assets and will focus on virtual currency exchanges, mixing and tumbling services, infrastructure providers and other entities enabling the misuse of cryptocurrency, and technologies involved in crimes.
Lisa Monaco, the deputy attorney general of the FBI said they are investigating over 100 different ransomware variants and cybercriminals.
"We are issuing a clear warning to criminals who use cryptocurrency to fuel their schemes. We also call on all companies dealing with cryptocurrency, we need you to root out cryptocurrency abuses," Monaco said.
“Moving forward, prosecutors, agents, and analysts will now assess each stage of cyber investigation whether to use disruptive actions against cyber threats, even if it might otherwise tip the cybercriminals off and jeopardise the potential for charges and apprehension," she added.