Cryptocurrency Enforcement – The Report Of The U.S. Attorney General’s Cyber Digital Task Force

Report Of The U.S. Attorney General’s Cyber Digital Task Force

Cryptocurrency Enforcement Framework

Advocating For Victims – A SCARS Special Report

The U.S. Governments Plan For Cryptocurrency Enforcement

Introduction to Cryptocurrency Enforcement

Innovation can drive a society forward. But innovation does not occur in a vacuum.

Public policy can establish background conditions that help the innovative spirit thrive—or create an environment in which that spirit is inhibited, or suppressed.

Even in societies where transformative scientific and technological advancements are achievable, public policy again plays a critical mediating role. In the wrong hands, or without appropriate safeguards and oversight, these advancements can facilitate great human suffering. Just ask the political enemies of authoritarian regimes that deploy surveillance tools Orwell never could have imagined. Or, closer to home, listen to the child victims of unspeakable sexual exploitation whose images and live-streamed abuse are so easily transmitted across the internet.

Technological innovation and human flourishing are complementary concepts, but the former does not guarantee the latter. Good public policy—and the fair  and equitable cryptocurrency enforcement of such policy—can help bring the two into alignment. And even as too much regulation undoubtedly stifles innovation (and human flourishing, too), the absence of law’s protections can endanger progress across both dimensions.

It takes careful consideration, and a deep and ongoing immersion in the facts, to understand when, and how, law should intervene. Once law’s empire has  established its root in a particular domain, it requires equally careful consideration (and humility on the part of government officials) to ensure that regulation goes no further than is required—that government action, in other words, reflects cryptocurrency enforcement only of “those wise restraints that make us free.”

This Cryptocurrency Enforcement Framework

In 2018, Attorney General Jeff Sessions established a Cyber-Digital Task Force within the U.S. Department of Justice to evaluate the impact that recent advances in technology have had on law enforcement’s ability to keep our citizens safe. Acknowledging the many ways in which technological advances “have enriched our lives and have driven our economy,” the Attorney General also noted that “the malign use of . . . technology harms our government, victimizes consumers and businesses, and endangers public safety and national security.”

The Task Force issued a comprehensive report later that year. That report identified particular threats currently confronting our society, ranging from transnational criminal enterprises’ sophisticated cyber-enabled schemes, to malign foreign influence operations, to efforts to compromise our nation’s critical infrastructure. The report also identified a number of emerging threats whose contours are still developing, and recommended further examination of their
potential impact. Specifically, the report recommended that “the Department should continue evaluating the emerging threats posed by rapidly developing cryptocurrencies that malicious cyber actors often use.” This Cryptocurrency Enforcement Framework represents the fruits of the Task Force’s efforts.

At the outset, it bears emphasizing that distributed ledger technology, upon which all cryptocurrencies build, raises breathtaking possibilities for human flourishing. These possibilities are rightly being explored around the globe, from within academia and industry, and from within governments—including our own.

It should be no surprise, for example, that researchers within the U.S. National Institute of Standards and Technology “have been investigating blockchain technologies at multiple levels: from use cases, applications and existing services, to protocols, security guarantees, and cryptographic mechanisms.” Or that the U.S. Department of Defense’s recently-issued Digital Modernization Strategy specifically identifies blockchain technology as having “promise to provide
increased effectiveness, efficiency, and security.” Or that the U.S. Food and Drug Administration recently released a detailed vision for how it plans to deploy blockchain for food safety-related purposes. Or that—in the cryptocurrency space specifically—“the Federal Reserve is active in conducting research and  experimentation related to distributed ledger technologies and the potential use cases for digital currencies,” including by partnering with the Massachusetts Institute of Technology to “build and test a hypothetical digital currency oriented to central bank uses.” Without doubt, cryptocurrency represents a transformative way to store and exchange value.

But as the following pages make clear [in the report below], despite its relatively brief existence, this technology already plays a role in many of the most
significant criminal and national security threats our nation faces. As the Task Force has found, illicit uses of cryptocurrency typically fall into three categories: (1) financial transactions associated with the commission of crimes; (2) money laundering and the shielding of legitimate activity from tax, reporting, or other legal requirements; or (3) crimes, such as theft, directly implicating the cryptocurrency marketplace itself. Part I of this Enforcement Framework examines in detail each of those categories.

Our society is not powerless in the face of these threats. As Part II demonstrates, the government has legal and regulatory tools available at its disposal to confront the threats posed by cryptocurrency’s illicit uses. Interagency partnership is critical for effectively leveraging those tools. The Department of Justice has built strong working relationships with its regulatory and enforcement partners in the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the U.S. Department of the Treasury (including FinCEN, OFAC, and the IRS), among others, to enforce federal law in both its civil and criminal aspects. We have actively participated in international regulatory and criminal enforcement efforts, as well.

Those efforts are paying off. The past year alone has witnessed the indictment and arrest of the alleged operator of the world’s largest online child sexual exploitation market, involving an enforcement action that was coordinated with the disruption of that darknet market, the rescue of over 20 child victims, and the seizure of hundreds of thousands of dollars worth of bitcoin; the largest-ever seizure of cryptocurrency in the terrorism context, stemming from the dismantling of terrorist financing campaigns running into the millions of dollars involving Hamas’s military wing, al-Qaeda, and ISIS; the first-ever imposition of economic sanctions for virtual-asset-related malicious cyber activity; and a novel (and successful) use of the federal securities laws to protect investors
in the cryptocurrency space, resulting in the disgorgement of over $1.2 billion in ill-gotten gains in a single case. We expect these enforcement trends to continue.

This report concludes in Part III with a discussion of the ongoing challenges the government faces in cryptocurrency enforcement—particularly with respect
to business models (employed by certain cryptocurrency exchanges, platforms, kiosks, and casinos), and to activity (like “mixing” and “tumbling,” “chain hopping,” and certain instances of jurisdictional arbitrage) that may facilitate criminal activity.

The Challenges We Face

Those challenges map neatly onto the broader set of challenges that many emerging technologies present to law enforcement.

Blockchain-related technologies are complex and are difficult to learn; for example, the methods for executing crimes like pump-and-dump schemes are changing, and require investigators to familiarize themselves with everything from how initial coin offerings (ICOs) are conducted to how technologically-savvy people communicate on specialized communications applications. Not only are these emerging technologies difficult to learn, but the relevant markets also rapidly evolve. The ICO boom from a few years ago has given way to the exponential growth of Decentralized Finance markets in recent months—with all the associated complexities and difficulties for enforcers seeking to stay ahead of the curve and keep investors safe.

The global nature of the blockchain ecosystem adds a further layer of complexity. Crime has been expanding beyond national borders for years, but blockchain takes this globalization to another level. Parties conduct transactions and transfers between continents in a matter of minutes, and the digital infrastructure
of the blockchain itself almost always transcends territorial boundaries. Adding to the difficulty, some of the largest crypto-asset exchanges operate outside of the United States, and many still require nothing more than an unverified email address before allowing an individual to begin trading.

Finally, decentralized platforms, peer-to-peer exchangers, and anonymity-enhanced cryptocurrencies that use non-public or private blockchains all can further obscure financial transactions from legitimate scrutiny. As this Cryptocurrency Enforcement Framework makes clear, the challenges are significant. But so, too, are the resources that the U.S. Department of Justice, as well as the U.S. government as a whole, are dedicating to the effort, in collaboration with our international

The Web 3.0

Technologists often talk about the Web 3.0, the next phase of the internet’s evolution. On this vision, humans will reclaim the internet, their data, and their anonymity from large outside forces, whether they be corporate firms or government entities.

Cryptocurrency—a medium of exchange defined, at its core, by a sense of private, individual control, and whose underlying blockchain technology already provides the backbone for applications outside the digital currency context—is central to this decentralized, anonymized, and still-being-defined notion of a future in which “a more semantically intelligent web” leverages data that “will be used by algorithms to improve user experience and make the web more
personalized and familiar,” and in which users will no longer have to “rely on network and cellular providers that surveil the information going through their systems.”

Ultimately, the Web 3.0 is a vision about the nature of data itself, foretelling a world in which information is diffuse and dynamic—present everywhere at once, and therefore beyond any outsider’s grasp.

Only time will tell how, and in what form, the Web 3.0 finally takes shape. To its proponents, this vision marries technological innovation with human flourishing. This Cryptocurrency Enforcement Framework suggests that, however liberating the emerging glimpses of the Web 3.0 might seem to be, that vision also can pose uniquely dangerous threats to public safety. Confronting and addressing those threats is what good public policy should do—and what the crypto ecosystem itself may have to do, if its vision of the future is ever fully to take hold. Meanwhile, federal authorities will continue vigorously enforcing the law as it exists, and pursuing justice on behalf of the American people.

Sujit Raman, Chair,
Attorney General’s Cyber-Digital Task Force 
United States Department of Justice
Washington, District of Columbia

-/ 30 /-

What do you think about this?
Please share your thoughts in a comment below!

SCARS FREE Support & Recovery Program - 4 EVER FREE

Do You Need Support?
Get It Now!

SCARS provides the leading Support & Recovery program for relationship scam victims – completely FREE!

Our managed peer support groups allow victims to talk to other survivors and recover in the most experienced environment possible, for as long as they need. Recovery takes as long as it takes – we put no limits on our support!

SCARS is the most trusted support & education provider in the world. Our team is certified in trauma-informed care, grief counseling, and so much more!

To apply to join our groups visit

We also offer separate support groups for family & friends too.

SCARS STAR Membership

Become a

SCARS offers memberships in our STAR program, which includes many benefits for a very low annual membership fee!

SCARS STAR Membership benefits include:

  • FREE Counseling or Therapy Benefit from our partner
  • Exclusive members-only content & publications
  • Discounts on SCARS Self-Help Books Save
  • And more!

To learn more about the SCARS STAR Membership visit

To become a SCARS STAR Member right now visit


SCARS Publishing Self-Help Recovery Books Available At

Scam Victim Self-Help Do-It-Yourself Recovery Books

SCARS Printed Books For Every Scam Survivor From SCARS Publishing


Each is based on our SCARS Team’s 32-plus years of experience.

SCARS Website Visitors receive an Extra 10% Discount
Use Discount Code “romanacescamsnow” at Checkout

Always Report All Scams – Anywhere In The World To:

Go to to learn how

U.S. FTC at and SCARS at
Visit to learn more!



Legal Disclaimer:

The content provided on this platform regarding psychological topics is intended solely for educational and entertainment purposes. The publisher makes no representations or warranties regarding the accuracy or completeness of the information presented. The content is designed to raise awareness about various psychological subjects, and readers are strongly encouraged to conduct their own research and verify information independently.

The information presented does not constitute professional advice, diagnosis, or treatment of any psychological disorder or disease. It is not a substitute for professional medical or mental health advice, diagnosis, or treatment. Readers are advised to seek the guidance of a licensed medical professional for any questions or concerns related to their mental health.

The publisher disclaims any responsibility for actions taken or not taken based on the content provided. The treatment of psychological issues is a serious matter, and readers should consult with qualified professionals to address their specific circumstances. The content on this platform is not intended to create, and receipt of it does not constitute, a therapist-client relationship.

Interpretation and Definitions


For the purposes of this Disclaimer:

  • Company (referred to as either “the Company”, “We”, “Us” or “Our” in this Disclaimer) refers to Society of Citizens Against Relationship Scams Inc. (registered d.b.a. “SCARS”,) 9561 Fountainbleau Blvd., Suit 602, Miami FL 33172.
  • Service refers to the Website.
  • You means the individual accessing this website, or the company, or other legal entity on behalf of which such individual is accessing or using the Service, as applicable.
  • Website refers to, accessible from

Website Disclaimer

The information contained on this website is for general information purposes only.

The Company assumes no responsibility for errors or omissions in the contents of the Service.

In no event shall the Company be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents on the Service at any time without prior notice.

The Company does not warrant this website in any way.

External Links Disclaimer

This website may contain links to external websites that are not provided or maintained by or in any way affiliated with the Company.

Please note that the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites.

Errors and Omissions Disclaimer

The information given by SCARS is for general guidance on matters of interest only. Even if the Company takes every precaution to ensure that the content of this website is both current and accurate, errors can occur. Plus, given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained on this website.

SCARS is not responsible for any errors or omissions, or for the results obtained from the use of this information.

Fair Use Disclaimer

SCARS may use copyrighted material that has not always been specifically authorized by the copyright owner. The Company is making such material available for criticism, comment, news reporting, teaching, scholarship, or research.

The Company believes this constitutes a “fair use” of any such copyrighted material as provided for in section 107 of the United States Copyright law.

If You wish to use copyrighted material from this website for your own purposes that go beyond fair use, You must obtain permission from the copyright owner.

Views Expressed Disclaimer

The Service may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other author, agency, organization, employer, or company, including SCARS.

Comments published by users are their sole responsibility and the users will take full responsibility, liability, and blame for any libel or litigation that results from something written in or as a direct result of something written in a comment. The Company is not liable for any comment published by users and reserves the right to delete any comment for any reason whatsoever.

No Responsibility Disclaimer

The information on the Service is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, medical or mental health, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal, medical or mental health, or other competent advisers.

In no event shall the Company, its team, board of directors, volunteers, or its suppliers be liable for any special, incidental, indirect, or consequential damages whatsoever arising out of or in connection with your access or use or inability to access or use the Service.

“Use at Your Own Risk” Disclaimer

All information on this website is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

SCARS will not be liable to You or anyone else for any decision made or action taken in reliance on the information given by the Service or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

Contact Us

If you have any questions about this Disclaimer, You can contact Us:

  • By email:

PLEASE NOTE: Psychology Clarification

The following specific modalities within the practice of psychology are restricted to psychologists appropriately trained in the use of such modalities:

  • Diagnosis: The diagnosis of mental, emotional, or brain disorders and related behaviors.
  • Psychoanalysis: Psychoanalysis is a type of therapy that focuses on helping individuals to understand and resolve unconscious conflicts.
  • Hypnosis: Hypnosis is a state of trance in which individuals are more susceptible to suggestion. It can be used to treat a variety of conditions, including anxiety, depression, and pain.
  • Biofeedback: Biofeedback is a type of therapy that teaches individuals to control their bodily functions, such as heart rate and blood pressure. It can be used to treat a variety of conditions, including stress, anxiety, and pain.
  • Behavioral analysis: Behavioral analysis is a type of therapy that focuses on changing individuals’ behaviors. It is often used to treat conditions such as autism and ADHD.
    Neuropsychology: Neuropsychology is a type of psychology that focuses on the relationship between the brain and behavior. It is often used to assess and treat cognitive impairments caused by brain injuries or diseases.

SCARS and the members of the SCARS Team do not engage in any of the above modalities in relationship to scam victims. SCARS is not a mental healthcare provider and recognizes the importance of professionalism and separation between its work and that of the licensed practice of psychology.

SCARS is an educational provider of generalized self-help information that individuals can use for their own benefit to achieve their own goals related to emotional trauma. SCARS recommends that all scam victims see professional counselors or therapists to help them determine the suitability of any specific information or practices that may help them.

SCARS cannot diagnose or treat any individuals, nor can it state the effectiveness of any educational information that it may provide, regardless of its experience in interacting with traumatized scam victims over time. All information that SCARS provides is purely for general educational purposes to help scam victims become aware of and better understand the topics and to be able to dialog with their counselors or therapists.

It is important that all readers understand these distinctions and that they apply the information that SCARS may publish at their own risk, and should do so only after consulting a licensed psychologist or mental healthcare provider.






This content and other material contained on the website, apps, newsletter, and products (“Content”), is general in nature and for informational purposes only and does not constitute medical, legal, or financial advice; the Content is not intended to be a substitute for licensed or regulated professional advice. Always consult your doctor or other qualified healthcare provider, lawyer, financial, or tax professional with any questions you may have regarding the educational information contained herein. SCARS makes no guarantees about the efficacy of information described on or in SCARS’ Content. The information contained is subject to change and is not intended to cover all possible situations or effects. SCARS does not recommend or endorse any specific professional or care provider, product, service, or other information that may be mentioned in SCARS’ websites, apps, and Content unless explicitly identified as such.

The disclaimers herein are provided on this page for ease of reference. These disclaimers supplement and are a part of SCARS’ website’s Terms of Use. 

All original content is Copyright © 1991 – 2023 Society of Citizens Against Relationship Scams Inc. (Registered D.B.A SCARS) All Rights Reserved Worldwide & Webwide. Third-party copyrights acknowledge.

U.S. State of Florida Registration Nonprofit (Not for Profit) #N20000011978 [SCARS DBA Registered #G20000137918] – Learn more at

View the claimed and or registered indicia, service marks, and trademarks of Society of Citizens Against Relationship Scams Inc., All Rights Reserved Worldwide

Contact the law firm for the Society of Citizens Against Relationship Scams Incorporated by email at

Share This Information - Choose Your Social Media!

Please Leave A Comment - Tell Us What You Think About This!