Department of Justice News

The U.S. Justice Department has published another report on crypto crime with detailed recommendations for legal reform; it has also formed a network of experts to advise offices.

Deputy Attorney General Lisa Monaco said authorities relied on victims to report attacks “as soon as those crimes occur” to help recover funds.

“Litigation and enforcement activity is likely to accelerate in the current regulatory climate, perhaps in unpredictable ways,” says lawyers from Choate Hall & Stewart LLP.

OIG’s audit disclosed the lack of documented policies and practices related to the management of seized crypto assets — especially related to the use of inventory spreadsheets.

Former SEC lawyer says OpenSea insider trading case could end with NFTs labeled as securities.

An unnamed individual allegedly sent more than $10 million in Bitcoin to an exchange in a country for which the U.S. currently imposes sanctions.

“Capuci operated a fraudulent investment scheme and did not use investors’ funds to mine new cryptocurrency, as promised, but instead diverted the funds to cryptocurrency wallets under his control,” the DOJ stated.

The SEC, CFTC and DOJ have seven cases either resolved or ongoing this year, with the litigation against husband-wife duo Ilya Lichtenstein and Heather Morgan being the most high profile.

“You can’t solicit funds for a business opportunity, abandon that business and abscond with money investors provided you,” stressed IRS-CI special agent-in-charge Thomas Fattorusso.

Law enforcement’s robust capacity to follow the money on the blockchain is good news for the crypto industry.

“The currency might be virtual, but the message to companies is concrete: if you report to us, we can follow the money and not only help you, but hopefully prevent the next victim," said Lisa Monaco.

What happened with the Bitfinex hack? What does it mean now that the U.S. has the Bitcoin? Why is LEO token mooning and why is Netflix involved?

The token surged almost 70% in a day after the DOJ announced that it had recovered most of the stolen funds from the 2016 Bitfinex hack.

"The department once again showed how it can and will follow the money," said Deputy Attorney General Lisa Monaco.

Under the pretext of holding corrupt actors accountable, the new task force will address crimes related to the criminal misuse of cryptocurrency.