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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×