The top official in charge of cryptocurrency enforcement in the United States has pledged to clamp down on illicit activities taking place on digital platforms. Eun Young Choi, director of the Department of Justice's national cryptocurrency enforcement team, has emphasized the significant growth of crypto-related crimes over the past four years.
The department is not only targeting crypto exchanges, but also the "mixers and tumblers" that obscure transaction trails, with a focus on companies involved in criminal activities or enabling money laundering. Choi believes that targeting these platforms will have a multiplier effect in curbing criminal behavior.
According to her, the Justice Department's efforts to target digital platforms will serve as a deterrent and encourage businesses to comply with anti-money laundering regulations and implement robust risk mitigation measures. Choi, who leads the newly established crypto enforcement unit, highlighted the increasing misuse of digital assets for illicit purposes, which has paralleled their broader adoption by the public.
The statement comes in the wake of the cryptocurrency industry shock following the collapse of FTX, an exchange once considered a reputable player in the volatile sector. FTX founder Sam Bankman-Fried is facing criminal charges related to wire fraud, money laundering conspiracy, and violations of campaign finance laws.
The statement comes in the wake of the cryptocurrency industry shock following the collapse of FTX, an exchange once considered a reputable player in the volatile sector. FTX founder Sam Bankman-Fried is facing criminal charges related to wire fraud, money laundering conspiracy, and violations of campaign finance laws.
The US government has also taken action against Binance, the world's largest crypto exchange, suing the company and its CEO for alleged illegal operations in the country.
While there are concerns about the potential disruption that a crackdown on influential companies like Binance could cause, Choi made it clear that the Department of Justice would not consider a company's size when considering potential charges.
If a company has gained a significant market share by flouting US criminal law, it cannot expect leniency based on claims of being "too big to fail." Choi emphasized the importance of sending a message that size or influence should not shield anyone from accountability in the crypto industry or any white-collar crime.