A crackdown by the U.S. Secret Service on illicit digital currency transactions resulted in the seizure of more than $102 million in cryptocurrency from criminals as part of fraud related investigation. Secret Service agent David Smith explains that his office tracks Bitcoin and other cryptocurrencies on the blockchain to prevent and fight fraud.
Following a digital currency wallet is no different than following an email address with corresponding identifiers.
David Smith – Assistant Director, Office of Investigations (Secret Service)
He explained that once a transaction has been made using a person’s email address or a wallet address, which gets into the blockchain, we are able to track that transaction via the blockchain. Based on data the agency provided, CNBC reported Tuesday that the Secret Service seized $102 million in cryptocurrency funds across more than 250 cases in the past seven years.
The Secret Service also broke up a ransomware operation tied to Russian and North Korean criminals and nabbed a Russian cyber crime group using a crypto exchange to launder money. An advisory from the government on Monday mentioned the growing cyber threats relating to cryptocurrency.
Protecting the next generation of currency: Learn how we are combating the illicit use of #crypto. Read more: https://t.co/mXhkdPuaii https://t.co/B03ingyr40
— U.S. Secret Service (@SecretService) April 19, 2022
A cryptocurrency awareness hub was launched by the USSS in February to raise public awareness about digital asset security and to showcase the agency’s efforts to clamp down on illegal usage of digital assets. A statement on the agency’s website indicated that digital assets had increasingly been used to facilitate criminal activity, such as fraud schemes and the use of ransomware. Yet the agency also noted that the use of digital currencies is not inherently illegal.
According to a joint advisory, the FBI, the Cybersecurity and Infrastructure Security Agency, and the Department of Treasury have seen evidence of North Korean hackers targeting cryptocurrency companies, tricking them into downloading unauthorized applications. After gaining access to the network, the group then uses the fake applications to steal private information.
Recently, the FBI announced that hackers from North Korea, referred to as the Lazarus Group, stole more than $620 million worth of cryptocurrency from the virtual game Axie Infinity this March. Two Chinese nationals were sanctioned by the Treasury Department that same month for their role in a 2018 cyber breach involving stolen cryptocurrency. As per the agency, the breach was associated with the Lazarus Group.
The FBI will continue to expose and combat the regime’s use of illicit activities to generate revenue for the regime, including cybercrime and bitcoin theft.
FBI
