This newly formed task force will have an international reach for targeting different “crypto-enabled crimes”.
As we know, several US agencies have been cracking down on the wider cryptocurrency market over the past few months. In the latest development, a total of five US enforcement agencies have announced cooperation among themselves on crimes linked to digital currency and darknet. On Tuesday, June 20, the Darknet Marketplace and Digital Currency Crimes Task Force made the official announcement. This new organization will specifically target “crypto-enabled crimes” that include money laundering, drug trafficking, child exploitation, as well as theft of personal information.
Last week, representatives from various agencies including Homeland Security Investigations (HSI) Arizona, the Office for US Attorneys, the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the Postal Inspection Service came together and signed an agreement to establish a new task force. This newly formed task force will have an international reach. Homeland Security Investigations already has a reach across 93 overseas locations across 56 countries.
All these agencies have been working together during the crypto bull run of 2017. The official announcement reads:
“The Darknet Marketplace and Digital Currency Crimes Task Force’s mission is to disrupt and dismantle criminal organizations that exploit the appearance of anonymity on the darknet or use digital currency to facilitate criminal activities.”
Law Enforcement Actions Against Cryptocurrencies
Over the years, law enforcement agencies worldwide have been forming specialized task forces to combat the rising crypto-related frauds in the market. Last year in October 2022, the world’s largest police organization Interpol set up a special team in Singapore to help global governments fight crimes involving virtual assets.
On the other hand, police in local Canadian cities have also started forming local task forces. In the United States, the Federal Bureau of Investigation established a Virtual Asset Exploitation Unit in February to collaborate with the Justice Department National Cryptocurrency Enforcement Team. Additionally, the Securities and Exchange Commission expanded its Cyber Unit significantly last year.
Law enforcement agencies have significant resources at their disposal. According to Chainalysis, there are more than 4,000 individuals with large cryptocurrency holdings derived from illegal activities, and there has been a 40% rise in crypto phishing attacks. However, there is evidence that the efforts of law enforcement are yielding positive results.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
