• The US Department of Justice (DOJ) is attempting to crack down on cryptocurrency exchanges engaged in illicit activity, such as money laundering, scams and theft.
• According to Eun Young Choi, the National Cryptocurrency Enforcement Team (NCET) director, the DOJ is aiming to have a multiplier effect by scrutinizing platforms that enable criminal activities.
• The agency has been investigating Binance for breaching Russian sanctions and sending a deterrent message to other crypto firms.
US DOJ Tries to Suppress Illicit Crypto Exchange Activity
The United States Department of Justice (DOJ) is actively trying to crack down on cryptocurrency exchanges which are engaging in illegal activities such as money laundering, scams and theft. The DOJ has set up a National Cryptocurrency Enforcement Team (NCET), headed by Eun Young Choi, whose aim is to disrupt these types of illicit activities by targeting the platforms that facilitate them.
DOJ Investigating Binance for Breaking Sanctions
As part of its efforts to deter similar behaviour from other crypto firms, the agency has been investigating Binance – one of the largest cryptocurrency exchanges – for breaking Russian sanctions. Despite this, Binance maintains that it has not violated any international laws and has stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) rules in place.
Recent Collapse of High-Profile Crypto Firms
The recent collapse of some high-profile crypto firms such as FTX, Celsius and Terra have also caught the attention of the DOJ who are looking into their activities with keen interest. As Choi mentioned in an interview with Financial Times: “Think of what message it would send…It can’t be the way that we think when it comes to crypto, when it comes to any white-collar crime”.
Highly Volatile Market Conditions
With highly volatile market conditions causing immense fluctuations in crypto prices over recent months, many investors are becoming concerned about their investments being put at risk due to improper regulation or lack thereof. The actions taken by the DOJ should help restore investor confidence in terms of protecting their investments from nefarious actors operating within these markets.
Overall, while there may still be some grey areas surrounding cryptocurrencies when it comes to regulation and accountability, it appears that moves are being made by US government agencies towards instilling some form of order within these markets – something which will likely benefit both investors and legitimate businesses operating within them alike.