US Official Issues Stern Warning to Crypto Firms Breaking the Law
The United States Deputy Treasury Secretary has strongly cautioned crypto firms suspected of participating in illicit activities.
“According to the Office of Financial Research, in 2021 alone, companies reported more than 2 billion transactions totaling $1.4 trillion in virtual currency transactions,” the statement declared.
US Government Cracking Down On Crypto Firms Breaking the Law
The US Deputy Secretary of the Treasury Wally Adeyemo issued a stern and simple warning to crypto firms that are engaging in illicit activities.
“My message is simple: We will find you and hold you accountable.”
Furthermore, he criticized crypto firms that assert themselves to be beyond the reach of the law or actively assist criminals and terrorists.
Adeyemo cited the recent legal troubles of the crypto exchange Binance with the US Department of Justice (DoJ).
“Binance allowed itself to be used by the perpetrators of child sexual abuse, illegal narcotics trafficking, and terrorism, across more than 100,000 transactions. Groups like Hamas, Al Qaeda, and ISIS conducted these transactions.”
Binance Faces Legal Troubles
This comes after news that Binance and its former CEO Changpeng “CZ” Zhao agreed to settle with the US DoJ for a $4.3 billion penalty.
Furthermore, he stated that some crypto firms have made an effort to prevent illicit activity. However, there is still a large amount of firms yet to take adequate action.
He emphasizes that this “represents a clear and present risk to our national security.”
Meanwhile, he urged the entire digital assets industry to intensify efforts in combating illicit activities. He wants these firms to unite to ostracize firms that fail to adhere to the rules:
“You also have the capacity to cut off firms from your ecosystem that are failing to take steps to prevent illicit finance.”