According to a CNBC report, the US Secret Service has used identifiers in popular types of cryptocurrency to detect illegal activity and has recovered more than $102 million in fraud-related crypto investigations spanning 254 cases. It is revealed that it monitors Bitcoin transactions on the blockchain to trace malicious activities. Its efforts have shown beneficial outcomes, and it has no plans to back down anytime soon.
According to the US Secret Service’s associate director of investigations, David Smith, the agency’s effectiveness is anchored on how several agents and analysts actively follow the flow of Bitcoin and other cryptocurrencies on the blockchain. This strategy used by the Secret Service, which is more known for protecting US presidents, is akin to old-fashioned monitoring.
Smith remarked that tracing a digital currency wallet is analogous to following an email address with several characteristics in common:
“Once a person and another person make a transaction, and that gets into the blockchain, we have the ability to follow that email address or wallet address, if you will, and trace it through the blockchain.”
Furthermore, one of the benefits of cryptocurrency appears to have made it a powerful instrument in the hands of these criminals. Smith elaborated,
“One of the things about cryptocurrency is that it moves money at a faster pace than the traditional format.”
Crypto theft is on the rise in the United States
With the increased popularity of cryptocurrencies, there has been an increase in crypto theft. The Federal Bureau of Investigation (FBI) remarked that there are over 900 victims of crypto theft in the United States. The FBI stated on April 18 that a hacking gang with North Korean government links stole $620 million in crypto assets off the Ronin blockchain last month, making it one of the greatest recorded crypto thefts in history. Another case handled by the FBI involves a Russian cybercrime organisation that utilised a cryptocurrency exchange to launder cash as well as Bitcoin ransomware payments to criminals in North Korea and Russia.
According to the Secret Service, the perpetrators of digital asset fraud plans subsequently turned their ill-gotten riches into digital assets, which are now part of the confiscated assets.
Combating crypto crime has been a top priority for the federal government, with the FBI establishing a new “virtual asset exploitation” branch earlier this year to handle cryptocurrency and blockchain crimes. In addition, the Justice Department has established the National Cryptocurrency Enforcement Team to handle its crypto-crime investigations.
Read more:
- United States Secret Service establishes “Crypto Awareness Hub” to educate public on digital asset security
- Florida man steals USD 575,000 in cryptocurrency from an elderly person
