In a decisive move to bolster its digital crime unit, the United States Department of Justice (DoJ) announced on Thursday, July 20 its strategy to fortify the National Cryptocurrency Enforcement Team (NCET), marking a significant expansion of resources in the fight against cryptocurrency-related offenses.
The department plans to more than double the staff of its cryptocurrency crime division, established in 2021, merging it with the Computer Crime and Intellectual Property Section (CCIPS). Nicole Argentieri, a senior Justice Department official, made the announcement at the Center for Strategic and International Studies, emphasizing that the merger would extend the resource pool and foster the growth of the NCET, which she hailed as an “enormously successful startup.”
Claudia Quiroz, a former assistant attorney from the U.S. Attorney’s Office for the Northern District of California and a deputy director at the NCET since its inception, will succeed Eun Young Choi as Director. Choi’s departure coincides with the departure of Kenneth Polite, head of the DoJ’s criminal division. Polite has been a prominent figure in the fight against digital crime and Argentieri is set to succeed him.
The intensified focus of the NCET will be tackling the rising prevalence of ransomware crimes, a form of cyberattack that has increased significantly in recent years. The team will concentrate on tracking criminals through their cryptocurrency transactions with the aim of freezing or seizing these funds before they reach ransomware hotspots.
Since its establishment, the NCET has gained notoriety in the face of industry downturns, notably the collapse of cryptocurrency exchange FTX. The team played a pivotal role in bringing charges against FTX founder Sam Bankman-Fried, accusing him of defrauding customers of billions while misleading investors and lenders. The NCET has also contributed to charges against the founder of Hong Kong-based exchange Bitzlato and has assisted in an investigation into Binance, the world’s largest crypto exchange.
The bolstering of the NCET aligns with the creation of the National Security Cyber Section, aimed at tackling cyberattacks by nation-state actors and other cyber-related threats to U.S. national security. The reshuffling of the Justice Department underscores its commitment to staying ahead of evolving criminal landscapes, especially as digital finance offers new channels for criminal activity.
Former federal prosecutor Ari Redbord, currently serving as global head of policy at blockchain analytics firm TRM Labs, underscored the significance of the DoJ’s moves. “I think over the last couple years what the DOJ has realized is that we’ve moved to a digital battlefield, where wars are fought on blockchains.”
As the realm of digital assets evolves, so too does the nature of criminal investigation and prosecution. This revamp signifies the Justice Department’s commitment to adapt and continue to spearhead the battle against emerging digital crime threats, demonstrating a concerted effort to safeguard a digital world experiencing unprecedented technological advancements and challenges. But can they be trusted to do so fairly?
