The United States Department of Justice is undergoing a significant transformation in its approach to cryptocurrency-related crimes. The National Cryptocurrency Enforcement Team , established in 2022 to tackle the illicit use of digital assets, is being integrated into the Computer Crime and Intellectual Property Section of the DOJ’s Criminal Division. This strategic move aims to consolidate expertise and resources, enhancing the department’s capability to address the complex intersection of cybercrime and cryptocurrency offenses.
Nicole Argentieri, Principal Deputy Assistant Attorney General, emphasized that this merger would double the number of attorneys available for cryptocurrency matters, reflecting the growing importance of digital assets in the realm of cybercrime. “It’s become obvious to everyone in the cybercrime field that cryptocurrency work and cyber prosecutions are intertwined, and will become even more so in the future,” Argentieri stated.
The NCET has been instrumental in several high-profile cases, including actions against cryptocurrency exchange Bitzlato and the arrest of Avraham Eisenberg for his exploit of decentralized exchange Mango Markets. The integration into CCIPS is expected to provide the NCET with enhanced resources and a broader platform to pursue complex investigations involving digital currencies.
This organizational shift comes at a time when the DOJ’s approach to cryptocurrency mixers has faced scrutiny. In May 2024, Senators Ron Wyden and Cynthia Lummis expressed concerns over the department’s interpretation of money transmission laws in cases against crypto mixing services like Samourai Wallet and Tornado Cash. They argued that the DOJ’s stance deviated from the Treasury Department’s Financial Crimes Enforcement Network’s previous position, which did not classify non-custodial crypto services as money transmitters.
The legal landscape for cryptocurrency mixers has been further complicated by recent court rulings. In November 2024, the U.S. Court of Appeals for the Fifth Circuit overturned sanctions imposed by the Treasury’s Office of Foreign Assets Control on Tornado Cash. The court determined that the smart contracts associated with Tornado Cash did not constitute “property” under the International Emergency Economic Powers Act , thereby exceeding OFAC’s authority.
Arabian Post – Crypto News Network
