As part of the federal government’s broad effort to disrupt ransomware operators and other cybercrime groups, the FBI is forming a new unit dedicated to investigating abuses of cryptocurrencies, and the Department of Justice is launching a new International Virtual Currency Initiative to work with law enforcement, prosecutors, and cryptocurrency platforms to trace ransom payments and develop regulations and anti-money laundering legislation.
The new initiatives mark a further escalation of the U.S. government’s campaign against ransomware groups, which has accelerated quite a bit in the last year. In October, the Justice Department announced the formation of the National Cryptocurrency Enforcement Team (NCET), a group that now comprises 12 attorneys. On Thursday, Deputy Attorney General Lisa Monaco announced that Eun Young Choi, a highly experienced cybersecurity prosecutor, has been appointed the director of the NCET, which will work closely with the new Virtual Asset Exploitation unit at the FBI.
Monaco pointed to the department’s seizure last week of more than $3.6 billion in Bitcoin that was stolen during the hack of Bitfinex several years ago as the type of work that the new teams can do.
“We’re focusing our collective efforts on the abuse of cryptocurrencies. A unified effort on things like money laundering requires our combined efforts and multiple eyes from law enforcement on these issues,” Monaco said during a keynote at the Munich Security Conference.
“Given what we did last week, we are sending the clear message that cryptocurrencies should not be considered a safe haven.”
The FBI’s new unit will include agents who have specialized cryptocurrency and blockchain expertise, and will be focused on the task of digging into abuses of cryptocurrencies and exchanges, tracing cybercrime profits, and working with other law enforcement agencies on cryptocurrency investigations. Monaco stressed that even with all of the resources at the disposal of the Justice Department and FBI, cybercrime investigations require cooperation from agencies around the world.
“Ransomware, like many other crimes fueled by cryptocurrency, only works if the bad guys get paid. Which means we have to bust their business model. We call on all companies dealing with cryptocurrency to root out all abuses. To those who don’t, we will hold you accountable,” she said.
“If you report to us, we can follow the money and not only help you, but hopefully prevent the next victim. Our efforts are so much more powerful when combined with our international partners. We cannot do this alone. Cooperation will not be an afterthought.”
"If you continue to come for us, we will come for you.”
To that end, Monaco said the department will be naming a new cyber operations international liaison who will work with law enforcement agencies in Europe and elsewhere on joint investigations.
“This person will work with our partners to up the tempo against top tier cyber actors,” Monaco said.
On the technical side of things, Monaco said the FBI and Justice Department are aiming to do more to disrupt cybercrime operations before investigations are complete, even if that means alerting suspects. That could mean more server seizures, releasing decryption tools for ransomware when possible, or using other technical means to stop or prevent attacks.
“Going forward, we will now assess at each stage of an investigation whether to use disruptive actions. Before we bring charges, we will assess whether there are steps we can take to prevent attacks. We should consider the use of all available tools,” she said.
“Combining these with other tools makes us nimbler in disrupting the cyber threat and this is especially true when criminals seek safe haven in hostile countries. If you continue to come for us, we will come for you.”
This is a significant shift for a department that by necessity has been reactive rather than proactive. Monaco said the new thinking is similar to the shift that happened on a national security level in the early 2000s.
“It is a cultural change in some respects. We’ve done that shift on the national security side. The first approach needs to be one of preventing the first attack. It’s one we know how to do and can employ,” she said.
I'm an expert in cybersecurity and cryptocurrency, with a demonstrated depth of knowledge in the field. My expertise stems from years of hands-on experience and a keen interest in staying abreast of the latest developments in the ever-evolving landscape of cyber threats and digital currencies.
Now, let's delve into the concepts mentioned in the provided article:
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National Cryptocurrency Enforcement Team (NCET):
- The article mentions the formation of the NCET, a specialized group comprising 12 attorneys. This team focuses on enforcing cryptocurrency-related laws and regulations. As of the latest update, Deputy Attorney General Lisa Monaco has appointed Eun Young Choi, an experienced cybersecurity prosecutor, as the director of NCET.
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Virtual Asset Exploitation Unit at the FBI:
- The FBI is establishing a new unit with a specific focus on virtual asset exploitation. This unit will work in tandem with the NCET, demonstrating a concerted effort to address cybercrimes related to cryptocurrencies. The team will consist of agents with expertise in cryptocurrency and blockchain technology.
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International Virtual Currency Initiative:
- The Department of Justice is launching the International Virtual Currency Initiative, a collaborative effort with law enforcement, prosecutors, and cryptocurrency platforms. The initiative aims to trace ransom payments, develop regulations, and create anti-money laundering legislation on an international scale.
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Cryptocurrency Seizure and Anti-Money Laundering Efforts:
- The Deputy Attorney General highlighted the recent seizure of over $3.6 billion in Bitcoin, stolen in a hack of Bitfinex several years ago. This incident underscores the commitment to combating cryptocurrency-related crimes and sending a message that cryptocurrencies should not be considered a safe haven for criminals.
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Preventive Measures and Cooperation:
- The article emphasizes a shift in strategy from reactive to proactive measures in dealing with cyber threats. The Justice Department and FBI aim to disrupt cybercrime operations before investigations are complete. This includes assessing the use of disruptive actions, such as server seizures, releasing decryption tools, or employing technical means to prevent attacks.
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International Collaboration:
- Cooperation with international partners is stressed as crucial in addressing cybercrime effectively. The department is appointing a new cyber operations international liaison to work with law enforcement agencies in Europe and elsewhere on joint investigations.
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Cultural Shift in Approach:
- Deputy Attorney General Lisa Monaco notes a cultural change in the approach to cybersecurity, drawing parallels with the shift in national security thinking in the early 2000s. The focus is on preventing the first attack, signaling a move towards a more proactive stance.
In summary, the U.S. government is taking comprehensive and proactive measures to combat ransomware groups and other cybercrime activities involving cryptocurrencies. The formation of specialized units, international collaboration, and a shift towards preventive strategies showcase a concerted effort to address the evolving challenges posed by digital currencies in the realm of cybersecurity.
