According to a report by the Financial Times on May 15, the National Cryptocurrency Enforcement Team (NCET) under the U.S. Department of Justice (DOJ) is stepping up scrutiny of cryptocurrency exchanges to crack down on illegal behavior on these platforms.
Eun Young Choi, director of NCET, said that the U.S. Department of Justice is now targeting cryptocurrency exchanges, DeFi platforms, and currency mixers, especially those cryptocurrency platforms that engage in criminal activities themselves or allow customers to launder money.
With cryptocurrency crimes rising significantly over the past few years, Eun Young Choi pledged to crack down on bad actors in the cryptocurrency market. she says
Most importantly, they allow other criminals to easily cash out their ill-gotten gains. By focusing on combating these types of platforms, we hope to have a multiplier effect.
Eun Young Choi pointed out that the move will also send a deterrent signal to cryptocurrency companies that “evade anti-money laundering measures, customer identification verification (KYC)” and “failure to establish compliance, network security and risk control procedures”.
Eun Young Choi did not name any cryptocurrency companies, but added that the size of a company would not be considered by authorities when the DOJ weighs the charges.
In addition, the U.S. Department of Justice will also keep an eye on theft and hacking attacks in the DeFi field, and emphasize that it will pay special attention to the field of cross-chain bridges.