Recently, the Department of Justice has focused its attention on the use and criminal misuse of Cryptocurrency in a very public way. On October 6, 2021, the Deputy Attorney General Lisa O. Monaco announced the launch of the National Cryptocurrency Enforcement Team (NCET) to place a greater focus on the “complex investigation and prosecution of criminal misuses of cryptocurrency.” This team will combine several resources and areas of expertise as they relate to cryptocurrency and its potential abuses, including Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), the Computer Crime and Intellectual Property Section (CCIPS) and any other sections in the division, particularly as it relates to tracing and recovery of assets lost to fraud and extortion.
Assistance Attorney General Kenneth A. Poltite stated, “The creation of this team will build on this leadership by combining and coordinating expertise across the Division in this continuously evolving field to investigate and prosecute the fraudulent misuse, illegal laundering, and other criminal activities involving cryptocurrencies.”
The government’s attention isn’t limited to criminal investigations. The IRS also recently announced it views on cryptocurrency and their enforcement priorities, including the agency’s partnership with TaxBit, a software company, to analyze cryptocurrency wallets and monitor sales of various cryptocurrencies making sure taxes are being paid on crypto profits and transactions. These announcements also correspond with high profile criminal prosecutions involving the misuse of cryptocurrency or even the failure to obtain a money transmitting license. All of these efforts make clear that the Department of Justice has made all things cryptocurrency a priority and focus. If you or someone you know has concerns about the use of cryptocurrency or believe you are the subject of an investigation involving cryptocurrency in any capacity, contact the Law Offices of Darryl A. Goldberg at (773)793-3196 for representation or to schedule a consultation.