Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

DOJ Sees Crypto Seizures as a Priority in Anti-Ransomware Push

DOJ Sees Crypto Seizures as a Priority in Anti-Ransomware Push

Crackdown could face hurdles if more hackers use privacy enhanced cryptocurrency
The Justice Department is increasingly trying to claw back ransomware payments made by hacked companies and is training cryptocurrency experts who can track funds across sometimes sprawling overseas criminal networks.

Ramping up seizures is a key prong of the U.S. strategy to slow a spate of ransomware attacks that the White House has labeled a top national-security threat, said Leo Tsao, principal deputy chief of the Justice Department’s money laundering and asset recovery section. The focus on retrieving payouts comes alongside the Biden administration’s push to shore up firms’ defenses, disable hackers’ tools and pressure foreign governments to crack down on criminals.

“One of the priorities of the department, in addition to prosecuting individuals carrying out these crimes, is to [get to] where we can seize and recover any proceeds that the criminals may earn from ransomware attacks or other cryptocurrency crimes,” Mr. Tsao said Tuesday at The Wall Street Journal’s Risk & Compliance Forum.

He didn’t offer details on whether federal officials would focus on ransoms paid by particular firms, such as critical infrastructure owners, or sums that reached certain dollar thresholds. The Justice Department didn’t immediately respond to a request for comment.

The Biden administration in June said it would expand efforts to track such transactions after ransomware gangs targeted a U.S. pipeline operator and a meat processor, disrupting their operations and extracting multimillion-dollar ransom payments. The White House’s emerging strategy in response spans law-enforcement and regulatory agencies.

The Treasury Department last month sanctioned a Russian-owned cryptocurrency exchange for allegedly aiding hackers to launder ransomware payments, a first-of-its-kind move that cybersecurity experts say could preview additional international restrictions. Last week, the Justice Department said it is creating a crypto unit to zero in on exchanges and “mixer” services that hacking groups use to move funds between various cryptocurrency addresses in ways intended to conceal the transactions from authorities.

That National Cryptocurrency Enforcement Team will also conduct training and support other law enforcement agencies’ ransomware cases, Mr. Tsao said Tuesday.

“We have had to do a lot of educating within the department,” he said of the DOJ.

Mr. Tsao pointed to the May attack on Colonial Pipeline Co. as an example of how federal officials are adapting to trace and seize money in such extortion schemes. In June, the Federal Bureau of Investigation snagged $2.3 million of bitcoins paid by Colonial during the attack that disrupted the East Coast’s largest conduit for fuel for six days.

Investigators can follow crypto transactions across a public ledger known as a blockchain, giving them a bird’s-eye view of money changing hands in a fast-growing ransomware economy.

The gangs behind attacks, which often operate with relative impunity in Russian-speaking countries, extorted businesses for at least $350 million in cryptocurrency last year, according to blockchain analytics firm Chainalysis. Cybersecurity experts say the total sum is likely much higher because some victim companies don’t report incidents.

While authorities are expanding their ability to track digital currencies, ransomware groups are similarly adapting their money-laundering strategies, Mr. Tsao said. That includes using overseas exchanges outside the reach of U.S. officials and cryptocurrencies designed to obscure transactions and better shield owners’ anonymity.

“Cryptocurrency presents additional challenges above and beyond fiat currency,” he said.

The government says combating cybercrime, including ransomware, requires a coordinated approach, including by other governments and the private sector.

“Simply prosecuting your way out of this problem is not a solution,” Mr. Tsao said, adding that working with companies will be an important part of the response, particularly in the cryptocurrency sphere.

The U.S. plans a 30-nation summit this month to discuss international cooperation in combating cybercrime.

Mr. Tsao was also asked if the Justice Department would look into the Pandora Papers recently released by the International Consortium of Investigative Journalists, which linked a number of politicians, public officials and celebrities to offshore tax havens, with some tied to financial crimes like money laundering.

Mr. Tsao said he was aware of the Pandora Papers, “but beyond that, there’s not really much more I can say about this topic.”

The Justice Department has historically prioritized combating international corruption and international money laundering, he said.

“I’ve spent a large part of my career as an anticorruption and anti-money-laundering prosecutor,” he added. “I have no doubt that foreign officials and foreign actors are using cryptocurrency to help launder funds, especially the proceeds of corruption, and we’ll continue to prioritize that at the department.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×