In 2022, several notable federal indictments, sentences, and seizures related to cryptocurrency were made public in the United States. To understand the extent and nature of government activity in Web3, CertiK has conducted research and analysis on the state of federal and regulatory crypto investigations in 2022. The investigation of civil and criminal suits relating to cryptocurrency are an important part of CertiK's mission to secure the Web3 world.
CertiK compiled all publicly available data on crypto investigations from various law enforcement and regulatory agencies for 2022. It is worth noting that the scope of the data collected is limited to investigations that have been publicly disclosed, as many investigations remain sealed and are not announced.
According to our data, there have been a total of 96 publicly disclosed crypto-related investigations in 2022. The Federal Bureau of Investigation (FBI) was responsible for the largest share of these cases, with 42 investigations representing 43.3% of the total. The United States Secret Service (USSS) was the second-highest contributor, with 20 cases, or 20.6% of the total. It is worth noting that the data may include some cases that involved interagency collaboration. The chart below provides a breakdown of the number of investigations per agency in 2022.
The disclosed status and outcome of crypto-related investigations varied among the different law enforcement and regulatory agencies. Most investigations resulted in charges and indictments, and some law enforcement agencies also announced seizures and sentences for their investigations. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which are regulatory agencies, only announced charges and indictments, as they handle civil charges that do not follow the same legal process as law enforcement agencies.
The high number of charges and indictments in 2022 suggests that we may see sentences issued in 2023 for defendants who have pleaded or are found guilty in these cases. It is important to note that the legal process can be complex and that the outcome of an investigation may not always be immediately known. By staying informed about the latest developments in crypto-related government investigations, we can gain a better understanding of the state of Web3 and the efforts being made to combat illicit activity in the space.
The data compiled by CertiK shows a significant increase in the number of crypto investigations conducted and publicly disclosed by U.S. federal law enforcement and regulatory agencies from 2021 to 2022. Specifically, there was a 81% increase in the total number of investigations, with 53 publicly released cases in 2021 compared to 96 cases in 2022. This trend is important to note, as it suggests that efforts to combat illicit activity in the Web3 space are increasing. It is likely that this upward trend will continue in the coming years, given the ramp-up of law enforcement and regulatory efforts in this area.
The increase in crypto investigations is significant for a number of reasons. One contributing factor is the increased efforts and funding by law enforcement agencies toward the formation and support of cryptocurrency task forces. For example, the FBI launched its crypto task force in February 2022, and the number of disclosed cases doubled from 20 in 2021 to 40 in 2022. Similarly, the USSS launched a cryptocurrency awareness hub in February 2022, and the number of disclosed cases also doubled from 9 in 2021 to 20 in 2022.
To fully comprehend the scope of crypto-related cases in the United States, it is crucial to understand the roles and responsibilities of different federal law enforcement and regulatory agencies. These agencies have different jurisdictions and capabilities, and their investigations may be conducted in different ways. By gaining a deeper understanding of these factors, we can better comprehend the overall state of crypto investigations in the U.S.
It is worth noting that, in addition to federal agencies, there are also state and local law enforcement agencies that are also be involved in crypto-related investigations.
In the U.S., there are five main federal agencies responsible for investigating crypto-related crimes: the Federal Bureau of Investigation (FBI), the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service Criminal Investigation Unit (IRS-CI), the United States Secret Service (USSS), and the Securities and Exchange Commission (SEC). Each of these agencies has specific duties and responsibilities when it comes to crypto investigations, and the complex nature of government jurisdiction can make it difficult to fully understand the scope of these investigations.
The FBI, USSS, and IRS-CI have criminal law enforcement capabilities and work closely with Assistant United States Attorneys (AUSAs) from the DOJ to prosecute and manage legal proceedings, including the processing of warrants and indictments. These investigations can result in criminal offenses, such as prison time, seizures, and other judicial actions.
On the other hand, the CFTC and SEC have regulatory and oversight responsibilities, rather than criminal law enforcement powers. They are responsible for enforcing rules and regulations related to the commodities and securities markets, respectively, and can take civil enforcement actions against individuals or companies that violate these rules. It is important to understand the differences between these agencies to properly evaluate crypto-related investigations. The distinction between department agencies with criminal law enforcement powers and regulatory agencies with oversight responsibilities can lead to significantly different legal proceedings and management. By understanding these differences, we can better understand the scope and nature of crypto-related investigations in the U.S.
Law enforcement and regulatory investigations can be lengthy and may take years before any charges are made. This means that it is possible for investigations that come to light in one year to relate to events that took place in previous years. As a result, announcements of crypto-related charges can be made for cases in 2022 well into 2023, and beyond.
This feature of law enforcement investigations is exemplified in many crypto-related cases that were announced in 2022. For example, on December 7, 2022, the Department of Justice U.S. Attorney's Office for the Southern District of New York announced the unsealing of an indictment charging Rikesh Thapa with operating a scheme to defraud a start-up technology company of over $1 million worth of U.S. currency, cryptocurrency, and utility tokens. According to the charges, Thapa allegedly carried out the scheme while serving as the CTO of the company between December 2017 and September 2019.
Similarly, the conviction of Randall Crater, founder of My Big Coin Pay Inc., for defrauding investors through the marketing and sale of fraudulent virtual currency between 2014 and 2017 is another example of a case that was announced in 2022 but related to events from several years prior.
It is worth noting that these examples are not exhaustive and that there may be other cases that have not been publicly disclosed. As we move into 2023, it is important to expect that we may see announcements of cases from 2022 and earlier, as the length of time that has passed since an event occurred is not necessarily an indicator of whether or not an investigation or potential charges will take place.
It is important to note that not all cases pursued by the federal government that result in a formal complaint, indictment, sentence, or seizure are released to the public. Indictments can be sealed by courts or not formally announced through press releases, and investigators or prosecutors may choose not to publicly disclose certain cases for various reasons. This means that it can be challenging to fully understand the scope of crypto investigations in 2022, as we can only analyze the cases that have been made publicly available.
However, despite these limitations, there were many notable cases disclosed by U.S. law enforcement and regulatory agencies in 2022 that are worth examining and reflecting on as we move forward into 2023. These cases provide valuable insights into the state of crypto investigations in the U.S. and can help inform future developments in this area
Based on this analysis, it is clear that there has been an upward trend in the number of crypto investigations conducted and publicly disclosed by U.S. federal law enforcement and regulatory agencies. As we move into 2023 and beyond, it is important to stay informed about the changes within the government related to the Web3 space, as these changes will have significant impacts on the ecosystem and understanding of the scope of cryptocurrency. Based on current trends, it is likely that investigations will continue to increase in the coming years.
At CertiK, our goal is to secure the Web3 world through ongoing efforts to provide the highest level of security and due diligence in the space. Understanding these trends helps us better understand the need for more security in Web3. To stay up to date on relevant crypto investigations in the United States, be sure to follow @CertiKAlert on Twitter for real-time alerts on a wide range of hacks, scams, and law enforcement announcements.
Note: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
*This article is a press release. Original source here. *
The trading pair goes live and is pumping!
Pi Coin trading pairs with USDT (Tether) have gone live on XT.COM, and so far, the pair is pumping! The PI/USDT pair dropped in the XT.com innovation zone and has risen over $7, at the time of writing.
Just two days after expressing interest in listing Pi Network’s native coin, XT.COM has gone straight ahead and listed the PI/USDT pair. The pair debuted only for trading at 03:00 on December 29, according to the XT.COM announcement from December 28.
The pair launched is not eligible for deposit or withdrawal and is listed as “To Be Determined.” Pi buyers should be wary of price volatility. Deposits and withdrawals are unlikely to arrive until the Open Mainnet of Pi Network, which has no launch date yet.
XT.com is the first centralized exchange to list Pi coin. The move is a massive and significant step for the Pi Network community.
XT.COM is the second centralized exchange to show interest in Pi Network during the last week of December. Huobi also announced it will monitor the mainnet upgrades of Pi Network.
Pi Network is a mobile blockchain mining project on a mission to give everyone access to the cryptocurrency revolution. The project was founded by a team of Stanford University Ph.D. candidates who designed a mobile-friendly blockchain mining algorithm.
Pi Network has evolved over the years and has organized a hackathon, built a couple of working Pi blockchain apps, and is now in the final stages of transition to public mainnet.
Website | Twitter | LinkedIn | Facebook | Instagram |
XT.COM is a social-infused trading platform that supports 800 trade pairs and over 500 digital assets. XT.COM Exchange was established in 2018 and registered in Seychelles. Its operating headquarters is located in Dubai. It has operation centers in Singapore, Europe and other countries and regions, and its business covers the world. It currently has more than 3 million registered users, more than 300,000 monthly active users, and more than 30 million users in the ecosystem.
Website | Twitter | Medium | Telegram | Discord |
The Kickstart Program will offer discounts to top service and tool providers across BNB Chain.
BNB Chain has started a Kickstart Program to help blockchain developers begin their projects with discounts and support from major industry players. The program is designed to help initiate a positive start with reputable projects.
The program, launched in early December 2022, contains a starter pack of tools and services from sixteen projects supporting BNB Chain. The program contains opportunities like audit discounts from notable security projects like CertiK and PeckShield, infrastructure and technical support from names like NodeReal, Amazon, and Particle, plus much more.
To participate in the program, developers and project leaders must complete the four steps of application, evaluation, claim, and action. The application requires projects to provide background to their team members and supporting information to the project. Projects will be informed of incentive claims once an evaluation is complete after the application submission.
For more information, check out the application page or GitHub page.
Previously known as the Binance Smart Chain (BSC), BNB Chain is a community-driven, decentralized, and censorship-resistant blockchain that is powered by Binance. It consists of BNB Beacon Chain and BNB Smart Chain, EVM compatible and facilitating a multi-chain ecosystem. Through the concept of MetaFI, BNB Chain aims to build the infrastructure to power the world’s parallel virtual ecosystem.
Website | Twitter | Discord | Telegram | GitHub |
The roadmap seeks to invoke the three pillars of Biswap by focusing on continual development, improving existing features, and overall ecosystem growth.
Biswap has updated its roadmap, projecting its course ahead through Q4 of 2023.
The Decentralized Exchange (DEX) on BNB Chain detailed the latest updates in an announcement on December 28. The team confirmed to have completed “strategic planning, gathered community opinion, and analyzed the vision of all stakeholders of the project” to finalize the plans.
The Biswap team broke the roadmap down into four quarters of progress:
The Biswap roadmap does not include all of the expected products and actions from the team. The door is still open for alteration and improvements from the team. If 2023 is anything like 2022, no one will be able to predict how it ends.
Biswap, as a decentralized exchange on BNB Chain, is growing in popularity due to its innovativeness. It introduced a first-of-its-kind 3-type referral scheme where users earn rewards whenever their referrals take part in farms, launch pools, or make swaps. Biswap charges 0.1% transaction fees, one of the lowest on BNB Chain.
Website | Whitepaper | Twitter | GitHub | Telegram
The historic weather storm is affecting users across the world with the outage.
Binance confirmed that the extreme cold weather, which affected most of North America over the Christmas holiday, caused a power outage to its cloud mining products.
The day counters of Binance’s bitcoin cloud mining services were interrupted between December 24 -26, according to the Dec. 27 announcement. Binance informed users it will extend the subscriptions of miners for three days and honor the average online rate of purchased contracts.
Most of the United States and Canada experienced historic cold weather over the week of Dec. 25. The massive storm of below-freezing temperatures extended more than 2,000 miles from Texas to Quebec and affected an estimated 250 million people.
Binance added that there would not be any further announcement about the incident.
Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.
Website | Twitter | Discord | Telegram |
The Kraken departure leaves a hole in the world's third biggest economy as reports emerge of a crypto softening in Japan.
Centralized crypto exchange Kraken has decided to exit the Japanese market. Kraken informed users in a Dec. 28 blog post that all activity will cease on January 31, 2023.
Kraken detailed to users that the exchange expresses remorse for the sudden move but that it makes the move in an effort to prioritize resources for sustainable long-term growth.
The departure of Kraken from Japan comes just one month after Binance purchased Sakura Exchange BitCoin to re-enter the Japanese market as a fully compliant operator for digital assets. Binance had previously been formally out of the Japanese market since 2018.
The move by Kraken strengthens Binance’s position in the world’s third-biggest economy. Recent moves from the Japanese government also indicate that a softening of the 30% crypto tax is on the horizon. Is 2023 a year Binance bolsters its position in Japan?
Binance positions itself as the world’s leading blockchain ecosystem and crypto-asset infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. The Binance platform aims to increase the freedom of money for users and features a comprehensive portfolio of crypto-asset products and offerings, including trading and finance, education, data and research, social good, investment and incubation, decentralization, and infrastructure solutions.
Website | Twitter | Discord | Telegram |
Kraken is a United States–based cryptocurrency exchange and bank founded in 2011. It is a digital exchange looking to be the go-to exchange that caters to traders of any level of crypto knowledge. Kraken is one of the oldest Bitcoin exchanges and supports more than 120 different coins to buy, sell, and trade with competitive exchange fees.
Website | Twitter | LinkedIn |
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Sponsored
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
Author
Administraroot
Related Posts
