The U.S. Department of Justice’s (DOJ) head of crypto enforcement, Eun Young Choi, has announced a renewed crackdown on illicit behavior on crypto exchanges.
In an interview with the Financial Times, Choi said that the DOJ targets exchanges that enable “criminal actors to profit from their crimes and cash out easily.” She also expressed concerns that crypto crime has grown significantly over the past four years.
Choi emphasized that the department focuses on businesses that do not comply with anti-money laundering or know-your-customer regulations or do not engage in thorough compliance and risk mitigation. She hopes that by targeting these platforms, they will have a “multiplier effect” on the wider crypto industry.
NCET’s Plans For Investment Scams
Choi’s National Cryptocurrency Enforcement Team (NCET) also plans to increase enforcement actions against investment scams, which she described as “pig butchering” schemes. These scams involve building long-term relationships with victims before defrauding them. The agency recovered around $112 million from six such scams in a recent bust.
According to the Federal Bureau of Investigation (FBI), investment fraud will cost consumers $3.31 billion in 2022, with crypto-related fraud accounting for more than $2.5 billion. These figures demonstrate the critical need for regulatory action to safeguard investors.
Crypto regulation has been a divisive subject, with some claiming that it stifles business innovation and growth. However, there is growing agreement that effective regulation is necessary to prevent illegal operations and safeguard consumers.
The DOJ’s increased focus on cryptocurrency exchanges and investment frauds is a positive move. The agency seeks to increase trust and confidence in the broader crypto economy by reducing these illegal operations.
Lastly, the vow of the DOJ’s crypto enforcement director to battle unlawful actions on cryptocurrency exchanges is a good development. This development is expected to have a positive impact on the market.
Related Reading| China’s Blockchain Center To Train 500k Specialists
The initiative to tackle investment schemes demonstrates the agency’s commitment to safeguarding consumers from fraud and other illegal actions. As the cryptocurrency business expands, regulatory measures such as these will be required to maintain its long-term survival.