Hacks, exploits, and crimes keep taking place in the crypto industry. In fact, they have been rising at an alarming rate. The illicit transaction volume climbed up to $20 billion in 2022. This marked a 40% increase from 2021. In fact, as Watcher Guru reported, the jump was attributed to the “increase of crypto transactions involving companies targeted by U.S. sanctions.”
An official from the U.S. Department of Justice recently emphasized the scale of crypto crime has grown “significantly” over the past four years. As a result, the agency is looking to crack down on illicit behavior involving digital platforms.
Eun Young Choi, Director of the National Cryptocurrency Enforcement Team, U.S. Department of Justice, recently revealed that the agency is targeting crypto exchanges. Specifically, it is eying companies that commit crimes themselves or allow them to happen. Parallelly, it is also targeting “mixers and tumblers” that conceal the trail of transactions. Elaborating on the current state of affairs, Choi said,
“We’re seeing the scale and the scope of digital assets being used in a variety of illicit ways grow significantly over the last, say, four years. I think that is concurrent with the increase of its adoption by the public writ large.”
Also Read: 2022 Saw $20 Billion in Cryptocurrency Crimes
Furthermore, Choi said that the increased scrutiny of platforms would “send a deterrent message” to businesses that are flouting rules. If a company “has amassed a significant market share in part because they’re flaunting U.S. criminal law”, the DoJ cannot “be in a position where we give someone a pass because they’re saying, ‘Well, now we’ve grown to be too big to fail,’” the official said.
Alongside crypto exchanges and companies, the DOJ is also focusing on thefts and hacks involving DeFi. Specifically, it is eying “chain bridges.”
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