On the 8th of September 2020, the department of justice, DOJ, reported increasing security threats to cryptocurrencies in the US. The DOJ believes that digital coins’ universal nature and the lack of consistent regulation globally hinder law enforcement.
The US report says that cryptocurrencies, in general, are threatening the safety and stability of the worldwide financial system. And this comes due to the chance for rogue nations, criminals, and terrorists evading reporting requirements.
Cyber-Digital Task Force On Cryptocurrency Securities
According to William Barr’s, the Attorney General said that terrorists leverage cryptocurrency to perform illicit activities. William believes that current terrorists using digital currencies may accelerate within a short period.
The Cyber Digital Taskforce also warned against digital currencies offering bad actors with the means to earn illegal profits. The task force worries that this might become a threat to national security. However, the DOJ’s main aim with this report is to lay out a framework for virtual cryptocurrencies law enforcement. The US’s justice body also assured that it would continue its aggressive investigation and prosecution of any malicious cryptocurrency users. DOJ also encourages international cooperation in running investigations and making arrests.
The DOJ Reports Comes Weeks After SEC Charged John McAfee
On the 5th of October 2020, the SEC charged John McAfee, a computer programmer, for fraudulently touting ICOs. The computer programmer promoted seven initial coins offerings to his twitter followers, which turned out as forced and misleading.
The SEC said that John McAfee recommended the cryptocurrency offerings from November 2017 to February 2018. The Securities and Exchange Commission pointed out that McAfee presented himself as impartial and independent while marketing the initial coin offerings. Besides, he got payments amounting to $ 23 million in undisclosed compensation for the ICO advertisements, which he earned by leveraging his fame.
McAfee refuted getting paid by the issuers to market the initial coin offerings. McAfee also cheated about putting money in some initial coin offerings and advising particular virtual assets issuers.
The Cyber Unit Chief, Kristina Littman, says that potential investors in digital currencies securities should be aware if promoters get paid by the securities’ issuers. The SEC, therefore, charged McAfee in violating anti-fraud provisions of the federal security laws. The computer programmer will also get banned from serving as a public company officer and director, while the SEC looks for the return of the ill-gotten gains and civil penalties.