The US Department of Justice stepping up its policing of cryptocurrencies with the formation of a new task force

• The US Justice Department announced the launch of the National Cryptocurrency Enforcement Team.
• The task force will tackle the rise in ransomware attacks and the surge in crypto-related crimes.

The US Justice Department this week announced the launch of the National Cryptocurrency Enforcement Team to combat the criminal use of digital assets.

Deputy Attorney General Lisa Monaco made the announcement at the Munich Cyber Security Conference, and appointed veteran prosecutor Eun Young Choi to serve as the inaugural director of the force.

The team will meet the challenge of crypto crimes and increasingly large ransomware attacks, according to a press release from the department.

"With the rapid innovation of digital assets and distributed ledger technologies, we have seen a rise in their illicit use by criminals who exploit them to fuel cyberattacks and ransomware and extortion schemes; traffic in narcotics, hacking tools and illicit contraband online; commit thefts and scams; and launder the proceeds of their crimes," said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department's Criminal Division in the release.

The team will have a "particular focus on virtual currency exchanges" and entities that facilitate the misuse of cryptocurrency.

The rapid growth of cryptocurrency markets in 2021 also came with an 80% rise in crypto crimes, according to a Chainalysis report.

A separate report then found that cyber crooks laundered $8.6 billion worth of dirty crypto last year, and laundering surged 30%. There's been about $33 billion in crypto laundered since 2017, primarily through centralized exchanges, according to the research firm.

"The NCET will serve as the focal point for the department's efforts to tackle the growth of crime involving these technologies," Polite Jr. said.