DOJ Aims to Stamp Out Money Laundering by Focusing on Crypto Mixers and Exchanges

  • The department has already begun its scrutiny with one of the initial investigations on Binance.
  • The DOJ chief’s statement comes at a time when there is regulatory uncertainty in the US.

The U.S. Department of Justice’s chief of the National Cryptocurrency Enforcement Team has announced the agency’s intention to take strict action against crypto exchanges that disregard money laundering regulations.

The report, which was released by the Financial Times, reveals that the scrutiny will not just be for the exchanges, but also the crypto mixers. This is primarily due to the fact that crypto mixers are frequently used by criminals for money laundering with the aim of concealing the trace of funds.

Choi also commented on the activities of criminals, stating that these platforms are allowing criminals to run away and profit from their crimes.

And so we hope that by focusing on those types of platforms, we’re going to have a multiplier effect.

Recently, the U.S. Department of Justice (DOJ) stepped up its efforts to stop illicit activity in the digital currency industry. The DOJ has launched a number of crackdowns aimed at different players in the cryptocurrency business, with a special emphasis on money laundering and other illegal financial operations.

Binance was also under scrutiny recently as the DOJ launched an investigation for alleged Russian sanctions violations. The whole point of the investigation was to look into the possibility of the exchange being used by Russians.

The cryptocurrency realm has been under tighter scrutiny by US regulators. With numerous crackdowns by the SEC and other regulators, major crypto industry players are beginning to stand up, asking for a clear-cut regulatory framework.

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