DOJ Crypto Task Force Goes After DeFi Hackers As Illicit Activity Soars

Christian Encila

2 years ago

3 mins read

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As it intensifies efforts to combat illicit activities in the crypto space, the United States Department of Justice (DOJ) has set its sights on the world of Decentralized Finance (DeFi).

With a sharp rise in illegal crypto operations over the past four years, the DOJ’s crypto task force has honed in on DeFi hackers and exploiters, aiming to curb their nefarious activities.

According to a recent report in the Financial Times, Eun Young Choi, the director of the Justice Department’s National Cryptocurrency Enforcement Team (NCET), emphasized the department’s focus on thefts and hacks within the realm of DeFi, specifically highlighting concerns surrounding “chain bridges.”

DOJ Takes Steps To Tackle Crypto-Related Crimes Via NCET

Choi, a seasoned prosecutor with close to a decade of experience at the agency, was chosen to lead the NCET in February 2022. The NCET is designed to serve as a central point for the DOJ in combating cryptocurrency-related crimes, as well as tackling cybercrime and money laundering.

Justice Department Announces First Director of National Cryptocurrency Enforcement Teamhttps://t.co/PvJ6iRDQ8P

— Justice Department (@TheJusticeDept) February 17, 2022

According to the FT report, the DOJ is particularly focused on the issue of DeFi-related thefts and hacks, especially chain bridges. Choi stressed the significance of this issue, especially considering the emergence of North Korean state-sponsored hackers as key players in this space.

The DOJ’s efforts to crack down on illicit activities in the crypto world underscores the need for regulators to take a proactive approach to safeguarding the financial system against threats from cybercriminals and other bad entities.

NCET Takes Aim At Crypto Mixers To Combat Money Laundering

The NCET’s mission to combat cryptocurrency-related crimes includes targeting crypto mixers and tumblers, which have been a thorn in the side of authorities due to their ability to obfuscate the tracing of funds.

These services have been used by criminals to launder money, making it difficult for authorities to track the source and destination of illicit transactions. The DOJ has taken related actions in the past to curb the use of these services by cyber criminals.

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Choi emphasized that the actions of these criminals not only hinder law enforcement’s ability to track down illegal activities but also provide an avenue for other criminal actors to cash out their gains.

She further explained that by focusing on these types of platforms, the DOJ hopes to have a multiplier effect, targeting the facilitators of criminal activity to disrupt the larger criminal network.

With the NCET’s dedicated attention towards crypto-related offenses, the agency is actively implementing measures to counter unlawful practices within the realm of cryptocurrencies, specifically targeting money laundering techniques intertwined with digital assets.

-Featured image from National Law Review

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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