The FBI and U.S. Justice Department both have plans for crypto. The recent high-profile wins provided the motivation for both agencies to move forward. Reuters Reports that the Justice Department hired “a seasoned computer crimes prosecutor” as their new crypto zar. For their part, the “FBI is launching a unit for blockchain analysis and virtual asset seizure.”
Both moves are a clear indication of the U.S.’s newfound attitude towards cryptocurrencies.
The Justice Department’s New Crypto Czar
The U.S. Justice Department’s National Cryptocurrency Enforcement Team (NCET) has a new leader. The chosen one is Ms. Eun Young Choi, “a prosecutor who led the case against a Russian hacker who helped steal information about more than 80 million JPMorgan & Chase Co customers.”
In the Justice Department’s press release, they quote Director Choi:
“The NCET will play a pivotal role in ensuring that as the technology surrounding digital assets grows and evolves, the department in turn accelerates and expands its efforts to combat their illicit abuse by criminals of all kinds. I am excited to lead the NCET’s incredible and talented team of attorneys, and to get to work on this important priority for the department.”
At Young Choi’s announcement, Reuter quotes Deputy Attorney General Lisa Monaco warning criminals of their organization’s aims:
“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. To those who do not, we will hold you accountable where we can.”
According to Monaco, their organization will move quickly and make things happen.
“Moving forward, prosecutors, agents, and analysts will now assess – at each stage of a cyber investigation – whether to use disruptive actions against cyber threats, even if they might otherwise tip the cybercriminals off and jeopardize the potential for charges and apprehension.”
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Why is The FBI creating a Crypto-Focused Unit Now?
Do you remember the high-profile wins we talked about? Of course, Bitfinex’s recent capture is another. “The creation of the FBI’s “virtual asset exploitation” unit comes after the Justice Department’s largest-ever financial seizure earlier this month,” said Reuters. When NewsBTC reported the storyTo summarize, the following questions were asked:
“Could this tech entrepreneur and this writer/ rapper have hacked a cryptocurrency exchange? They are just money launderers who work for larger companies. They also saved the keys to BTC, billions on the internet. They were actually set up. Is law enforcement playing tricks on the public or are they the heroes of the day?”
Colonial Pipeline’s hack was another high-profile win. According to Reuters, the FBI is “ratcheting up their scrutiny of the crypto industry in the wake of a series of high-profile cyberattacks last year on the largest U.S. fuel pipeline network and the world’s largest beef supplier.” When law-enforcement recovered millions in BTC from that ransomware payout, NewsBTC summarised the situationLike this:
“According to the report, Colonial Pipeline controls around 45% of the fuel for the U.S. East Coast. Its CEO Joseph Blount was forced to pay the ransom enforced by the hacker on a control room’s main computer. It was estimated that the ransom totalled $4.4 million and it was paid for in 63.7 bitcoin.
A special task force on ransomware was created by the U.S. Federal Government to execute this operation. These types of attacks are now common. There is a growing concern in the public and the authorities.”
This growing concern led to the creation of a new Crypto czar as well as a new FBI Unit that focuses on this problem.
Conclusions and Market Considerations
There’s a growing concern about how will these high-profile seizes will affect the market. Or will law enforcement simply give Bitfinex the BTC? They might even sell it. The U.S. might accept it as Bitcoin on their balance sheets. It is unclear how law enforcement will handle it. What will you do if these coins are ever sold on the marketplace?
Bitfinex’s hack may be a significant case that will help to determine the direction the government is going with this. Don’t worry, for you, NewsBTC will keep an eye out for every little development.
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