US forms task force to tackle crypto crime

The U.S. Department of Homeland Security said it formed a new cross-agency task force comprising five federal law enforcement agencies to investigate crimes related to cryptocurrency and the darknet.

A memorandum of understanding was signed by: the Arizona National Security Investigations Service, the U.S. Attorneys’ Office, the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service.

According to DHS officials, the agencies have cooperated since 2017 and have jointly uncovered a number of high-profile darknet-related cases.

According to the statement, the primary aim of the initiative is to ensure “closer cooperation, increased resources, and the disruption and dismantling of criminal organizations that use new technologies.”

In the initial phase, the task force will operate within the jurisdiction of the state of Arizona.

“Criminals have long tried to launder proceeds from their illicit activities through various means, and technology is enabling this on a massive scale. As these perpetrators become more sophisticated, law enforcement tools, resources and intelligence must adapt,” the DHS said.

In February 2022 the FBI formed a division focused on analyzing on-chain activity in decentralized networks.

In October, Interpol also created a group to investigate cases involving digital assets. The new structure will assist law enforcement across countries in the fight against crypto crime.

According to James Lop, Casa’s chief technology officer, the U.S. government missed out on profits of at least $5.1 billion from the “hasty” sale of confiscated Bitcoins.