- The head of the NCET, Eun-Yong Choi, said
- The department is interested in large platforms that violate AML and KYC rules
The head of the US Justice Department’s National Anti-Cryptocurrency Enforcement Team (NCET) Eun-Yong Choi declared “war” on CEX.
She threatens “harsh measures” to those sites that violate AML rules and fail to adhere to strict KYC requirements.
She said this in a commentary for the FT. She said the DOJ is targeting exchanges that allow criminals to “profit” from their schemes and easily cash out funds.
En Choi says the agency has seen a marked increase in such platforms over the past four years. She also added the following:
“We hope that we can achieve a multiplier effect by focusing on these sites.”
In her press statement, the department head also mentioned so-called “pig slaughter” schemes.
The term is used to define fraudulent schemes in which the victim is “fed” with promises of guaranteed profit.
Criminals often spend months communicating, luring the victim into the scheme. It can even make a profit for a while, but then it loses all the money invested.
In April alone, the DOJ confiscated $112 million worth of cryptocurrency obtained through such manipulations.
The money is promised to return to the victims. Earlier we told about the media reaction to the news that many cryptocurrency companies are planning to leave the U.S.
Experts consider it a bluff, a game directed against the SEC.