America Sets up Task Force on Overseas Crypto Fraud Facilities

A new international task force, developed by the U.S. Department of Justice (DOJ), is aimed at breaking down massive crypto scam networks with an international presence. The program, which is called the Joint Strike Force on Digital Financial Crimes, unites federal agencies, foreign law enforcement agencies, and financial regulators to monitor billions of dollars being sunk into a variety of scam crypto investment plans.

A Growing Global Threat

In the last three years, crypto-related fraud has become a transnational crisis, with organized crime groups in Southeast Asia and Eastern Europe allegedly operating so-called pig butchering schemes to the tune of over 3 billion dollars on investors. These are frauds that target victims via social media and dating applications and make them spend on these sham crypto platforms before vanishing with the money.

U.S. Attorney General Merrick Garland stated that the new strike force is a coordinated effort to combat international fraud rings that target Americans by purporting to offer them an opportunity digitally. He pointed out that the DOJ collaborates with its partners in such countries as Thailand, the Philippines, and the United Arab Emirates to identify and bring to justice the perpetrators of the operations.

Cooperation on the International Level

The Strike Force will liaise with the DOJ, Criminal Division; the FBI, Cyber Division, and the U.S. Secret Service, Global Investigations Unit. It will also encompass the Financial Crimes Enforcement Network of the Treasury Department, which will specialize in tracking the money flows through exchanges and offshore accounts.

The federal agents validated that the task force has already started working with Interpol and Europol to locate the significant scam compounds that are thought to be running out of Cambodia and Myanmar, regions that have been recognized to have forced-labor crypto scam hubs.

They are not only crimes of money, but they are human rights problems, as the U.S. Deputy Attorney General, Lisa Monaco, stated. We are watching victims of trafficking run these scams, and others are losing their life savings in them. It is an attempt at each end of that chain.

Reaction in the Industry and Next Steps

The industry leaders in the crypto industry have, in general, been excited about the move that they describe as a significant step towards regaining the confidence of digital finance. 

The DOJ has observed that some arrests and extraditions are already being carried out, but the information is kept secret. According to the officials, more announcements might be made before the end of the year because operations will be increased in Asia and the Middle East.

Conclusion

The introduction of the Joint Strike Force is one of the most proactive responses of the U.S. against global crypto crimes to date. But losing billions and hundreds of lives, the new offensive by Washington would become an international collaboration in the digital age, one that might finally result in a reversal of the fortunes of the most intractable crypto fraudsters in the world.

This article was originally published as America Sets up Task Force on Overseas Crypto Fraud Facilities on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.