In a bold move to tackle illicit activities within the crypto realm, the US Department of Justice (DOJ) is preparing to go head-to-head with crypto exchanges that facilitate crimes and turn a blind eye to money laundering. Eun Young Choi, the director of the agency’s National Cryptocurrency Enforcement Team (NCET), recently disclosed the DOJ’s plans to the Financial Times, igniting a fiery debate within the crypto community.

During the interview, Choi expressed her concerns about crypto platforms that not only engage in criminal behavior themselves but also provide an avenue for other nefarious actors to profit from their illicit activities. She emphasized the need to address the problematic cash-out methods utilized by these platforms, which have caught the attention of law enforcement agencies.

“We hope that by focusing on those types of platforms, we’re going to have a multiplier effect,” Choi declared, highlighting the DOJ’s determination to take a stand against such practices.

The DOJ’s initiative comes after their successful prosecution of Vietnamese national Minh Quoc Nguyen in March. Nguyen was charged with money laundering and identity theft in relation to the operations of the crypto platform ChipMixer. This landmark case demonstrated the DOJ’s commitment to cracking down on individuals who openly flout financial regulations and exploit the vulnerabilities of the crypto landscape.

With the latest crackdown, the DOJ aims to intensify its scrutiny of crypto companies, serving as a deterrent to businesses that have managed to evade anti-money laundering regulations and customer identification requirements. Choi stressed that size would not be a factor in determining potential charges, indicating that even the largest entities would not be spared from the DOJ’s watchful eye.

Moreover, the DOJ intends to extend its focus to crimes related to decentralized finance (DeFi), particularly honing in on “chain bridges.” These platforms enable users to exchange various digital tokens but have also become a breeding ground for illicit activities. Nascent projects with vulnerable codes will also be targeted, as they pose security risks and potential gateways for malicious attacks.

As the crypto community braces for the DOJ’s intensified crackdown, the regulatory landscape is bound to undergo significant transformations. Crypto exchanges and platforms that have shied away from investing in robust compliance and risk mitigation procedures will face the consequences of their negligence. The DOJ’s actions aim to restore confidence in the crypto industry, ensuring a safer environment for all participants.

While the battle between the DOJ and crypto exchanges unfolds, the question remains: will this crackdown pave the way for a more regulated and secure crypto landscape? Only time will tell as the DOJ continues its mission to root out criminal activities and protect the integrity of the digital asset space.

Stay tuned for further updates as the DOJ’s campaign against crypto crime unfolds, shaking the foundations of the crypto world and reshaping the future of the industry.