The US Government has Formed a Task Force to Focus on Crypto Fraud

Investigating cryptocurrency fraud

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A new task force has been formed in the United States to focus on cryptocurrency fraud. The task force was formed through an executive order and will form a new anti-crime unit which will have representation from different government bodies. The new task force which will work on Market Integrity and Consumer fraud will be chaired by the United States deputy attorney general who will be deputized by the associate attorney general. The task force will work to provide guidance in the investigation as well as prosecution of different cases involving crypto fraud on the US government, consumers as well as financial markets.

The executive order which led to the formation of this new task force gave special attention to cryptocurrency fraud, money laundering and methods of recovery as well as fraud affecting the public. The committee was also asked to look into tax fraud, healthcare fraud and well as other crimes affecting the financial sector.

The United States Securities and Exchange Commission was named to be among the member of the task force. The SEC’s chair Jay Clayton noted that the move was a great one and would help all regulators coordinate activities in a more efficient way.

According to Clayton:

“SEC works very hard to protect investors. The newly formed task force will allow the commission to build on close partnership and even have a better working relationship with the other regulators and even law enforcement agencies to stop combat retail fraud.”

The US Department of Justice, the Federal Trade Commission, and the Consumer Financial Protection Bureau were also named to part of the task force.

Before the formation of the task force, the Commodities Futures Trading Commission and SEC had committed to monitoring digital currencies closely in order to ensure that all actors followed all the existing laws.

Regulators in the United States are taking crimes related to digital currencies very seriously. A few days ago Bitcoin Marvel was jailed for one year to trading Bitcoin without a license and engaging in Bitcoin-related crimes like Money Laundering. More to that there is also an ongoing probe which seeks to investigate ICO operators. The new crackdown is seeking to eliminate all illegitimate or suspicious fraudsters and other suspicious schemes. Earlier last month it was established that only about 4% of all ICO become successful. Due to the untrustworthy nature of ICOs, many countries have tightened laws when it comes to the Initial Coin Offerings while others opt to ban them completely.

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