The United States Department of Justice (DOJ) has recently established a new task force dedicated to overseeing investigations and prosecutions related to criminal misuses of cryptocurrency. This initiative, known as the National Cryptocurrency Enforcement Team (NCET), was officially announced by Deputy Attorney General Lisa Monaco.
In her statement on October 6th, Monaco emphasized the importance of leveraging the Department’s expertise in cyber and money laundering to dismantle financial entities that support criminal activities through cryptocurrency platforms. The primary goal of NCET is to eliminate abuse on these platforms and restore user confidence in the system.
The focus of the team will be on combating criminal activities carried out by virtual currency exchanges, money laundering infrastructure actors, and mixing and tumbling services. Additionally, NCET will play a crucial role in tracing and recovering assets lost to fraud and extortion, including cryptocurrency payments made to ransomware groups.
Under the leadership of Assistant Attorney General Kenneth Polite Jr., NCET will provide support in developing investigative and prosecutorial strategies for federal prosecutors and law enforcement agencies. This includes offering guidance on search and seizure warrants, restraining orders, criminal and civil forfeiture allegations, and indictment procedures.
Polite highlighted the Criminal Division’s existing expertise in investigating and prosecuting the misuse of cryptocurrency, stating that the formation of NCET will enhance this leadership by consolidating expertise across the Division. The team will consist of members from the DOJ Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), the Computer Crime and Intellectual Property Section (CCIPS), and detailees from US Attorneys’ Offices nationwide.
Currently, the DOJ is in the process of recruiting a qualified individual with experience in complex criminal investigations, prosecutions, and knowledge of cryptocurrency technology and blockchain to lead the NCET team. The team leader will report directly to the assistant attorney general in the Criminal Division.
Overall, the establishment of the National Cryptocurrency Enforcement Team signifies a significant step forward in the DOJ’s efforts to combat criminal activities involving cryptocurrency. By pooling together expertise and resources, the team aims to effectively address the challenges posed by these evolving technologies and protect the integrity of the financial system.