The U.S. Department of Justice has started targeting crypto exchanges that have either weak controls that allow scam artists to commit investment fraud of investor’s crypto accounts, according to a May 15, 2023, article found on CoinDesk. The article quotes the FBI as stating that as estimated $2.5 billion in crypto assets were stolen in 2022 alone, and the DOJ’s National Cryptocurrency Enforcement Team (NCET) is going to start cracking down on that activity. This is important for two reasons which I will get to in a second, but suffice it to say that the story here is only the tip of a much larger iceberg than you might expect.
The first issue is the more practical one and right down my line of work, which involves the recovery of stolen assets ― or, rather, the steep difficulties that an investor faces in attempting to get back lost crypto assets. Many of the hackers or scam artists, or whatever you want to call them, are from outside the U.S. where it is very difficult to get at them. Consider, for instance, the recent heist of $35 million by suspected North Korea hackers.
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