Eun Young Choi, Director of the US Department of Justice’s National Cryptocurrency Enforcement Team, has told the Financial Times that her department is coming after crypto exchanges that offer mixing and tumbling services that help launder money. She said that companies that perform or facilitate either of these services could be targeted, no matter their size.
She said that these companies are very problematic to her department because they allow other financial criminals to easily profit from their crimes. By stamping out these services, the DoJ will be hoping that it has a “multiplier effect”, making it easier to catch criminals and seize stolen assets.
Choi also hopes that the move will affect the decisions of crypto companies that don’t currently have rigorous checks in place. Those companies that see the actions of the DoJ may now be more incentivized to enforce anti-money laundering rules and ask clients for identification. She also believes that more companies will invest in “solid compliance and risk mitigation procedures.”
The need for regulation has become more apparent in the last year with the bankruptcy of Sam Bankman-Fried’s FTX and Alex Mashinsky’s Celsius. Although sanctions were not mentioned by Choi specifically, the DoJ has also been investigating Binance for helping Russians bypass sanctions.
Source: FT
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