The United States has created a task force to fight crypto crime on the dark web and dismantle criminal groups that use digital currencies for their gain.
- Investigators from various federal agencies are members of a task group the U.S. government established to focus on crypto crime on the dark web.
- Decentralized finance poses possible national security dangers, according to the U.S. Treasury, even though cryptocurrency-related crimes are rising while their proportion of all crypto transactions is falling.
The “Darknet Marketplace and Digital Currency Crimes Task Force” is a specialized task force recently established by the US government to combat crypto-related criminal activity. The task force is made up of five investigators from various government departments, including the Department of Homeland Security (DHS), the Drug Enforcement Administration (DEA), the Department of Justice (DOJ), and the United States Postal Inspection Service (USPS). Their main goal is to break up organized crime groups who use digital currency to conceal their identities while engaging in illegal activities including drug trafficking, money laundering, and other crimes. Arizona will be the initial focus of its operations.
Adapting to Evolving Criminal Activities
The creation of this task force is a response to the increasing sophistication of criminal activities and businesses, claims a news release posted on the website of US Immigration and Customs Enforcement. Law enforcement organizations had to improve their capacities as criminals become more skilled at manipulating digital currency to effectively address these hazards.
Previous Successes in Crypto Crime Investigations
Each of the five organizations that make up the task force has a history of successfully resolving criminal investigations involving cryptocurrencies. For instance, the Department of Justice made the greatest financial seizure in US history in 2018 when it recovered $3.6 billion in Bitcoin that had been stolen from the Bitfinex exchange. The same year, the department also impounded 50,000 Bitcoin linked to Silk Road, a now-defunct darknet market well known for enabling shady deals involving drugs, firearms, and other illegal goods.
DEA and IRS-CI Commitment to Combatting Crypto Crime
According to DEA Special Agent in Charge Cheri Oz, the DEA, one of the cooperating agencies, is committed to saving lives by ruthlessly going after and exposing drug criminals using the darknet. The IRS-CI, on the other hand, is aware of the rising popularity of cryptocurrency and darknet crimes. As a result, the unit has increased its investigative capabilities and knowledge to address these new problems, as stressed by IRS-CI Special Agent in Charge Al Childress.
Understanding the Landscape of Crypto Crime
Even though the amount of money taken through cryptocurrency-related crimes grows yearly, Chainalysis data shows a diminishing share of the total volume of crypto transactions. Additionally, a risk assessment analysis issued by the U.S. Treasury Department last year showed that the use of digital assets for money laundering is now less common than the use of conventional fiat currencies. The Treasury Department did, however, also draw attention to potential “national security” risks related to the ecosystem of decentralized finance (DeFi) in April. This ecosystem can be used by thieves and ransomware authors to launder their stolen funds, demanding aggressive steps to stop such abuses.
Conclusion
The U.S. government’s creation of the Darknet Marketplace and Digital Currency Crimes Task Force indicates its growing understanding of the need of stopping crypto-related criminal activity. The task force’s mission is to dismantle criminal organizations that take advantage of the anonymity offered by digital currency by bringing together investigators from several federal agencies. The task force is prepared to fight drug trafficking, money laundering, and other illegal operations on the dark web thanks to the cooperation and experience of the DHS, IRS-CI, DEA, DOJ, and USPS. To maintain the integrity of the financial system and safeguard national security, law enforcement authorities need to adapt and remain ahead of these criminals as the incidence of crypto crime increases.
