In 2022, several notable federal indictments, judgments and seizures related to cryptocurrencies have been published in the United States. To understand the scope and nature of government activity in Web3, CertiK conducted research and analysis on the state of cryptocurrency investigations by federal government and regulators in 2022. Web3 world.
Analysis of the 2022 survey
CertiK has compiled all public data on crypto investigations from various law enforcement and regulatory agencies for 2022.
According to our data, there will be a total of 96 crypto-related studies published in 2022. The Federal Bureau of Investigation (FBI) is responsible for the largest share of these cases, with 42 investigations accounting for 43.3% of the total. The United States Secret Service (USSS) had his second highest number, with 20, or 20.6% of the total. Please note that the data may include some cases involving inter-agency cooperation. The chart below shows the breakdown of the number of surveys by agency in 2022.
The disclosure and results of crypto-related investigations vary by law enforcement and regulatory bodies. Most investigations resulted in accusations and indictments, and some law enforcement agencies announced seizures and sentences for investigations. The regulators, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have only announced charges and indictments as they handle civil cases that do not follow the same legal process as law enforcement.
The high number of accusations and indictments in 2022 suggests that defendants who have pleaded or been convicted in these cases may be sentenced in 2023. It is important to note that legal proceedings can be complicated and the results of investigations are not always immediately available. Staying up-to-date on the latest developments in government investigations related to cryptocurrencies will give us a better understanding of the state of Web3 and the efforts being made to combat illegal activity in this area.
uptrend
Data compiled by CertiK shows that 2021-2022 saw a significant increase in the number of public cryptocurrency investigations conducted and published by US federal law enforcement and regulatory agencies. Specifically, the total number of surveys increased by 81%, with 53 published. Number of cases released in 2021 compared to 96 in 2022. It’s important to note this trend, as it suggests an increase in efforts to combat illegal activity in the Web3 space. Given the increased law enforcement and regulatory efforts in this area, this upward trend is likely to continue in the coming years.
The increase in crypto research is important for several reasons. One factor is increased efforts and funding by law enforcement to form and support cryptocurrency task forces. for example, FBI Launches Crypto Task Force In February 2022, the number of publicly disclosed cases doubled from 20 in 2021 to 40 in 2022. USSS Launches Cryptocurrency Awareness Hub The number of cases published and disclosed in February 2022 also doubled from 9 in 2021 to 20 in 2022.
Characteristics of Investigations by U.S. Federal Law Enforcement and Regulatory Agencies
To fully understand the scope of crypto-related incidents in the United States, it is important to understand the roles and responsibilities of various federal law enforcement and regulatory agencies. These agencies have different jurisdictions and abilities and investigations may be conducted in different ways.A deeper understanding of these factors will give us a better understanding of the overall state of crypto research in the United States.
TYPES OF INSTITUTIONS AND JURISDICTIONS
Note that in addition to federal agencies, there are also state and local law enforcement agencies involved in crypto-related investigations.
The United States has five major federal agencies responsible for investigating crypto-related crimes. United States Secret Service (USSS), and Securities and Exchange Commission (SEC). Each of these agencies has specific duties and responsibilities regarding crypto investigations, and the complex nature of government jurisdictions can make it difficult to fully understand the scope of these investigations.
Law Enforcement Vs.regulatory body
The FBI, USSS, and IRS-CI have criminal law enforcement capabilities and work closely with DOJ’s Assistant U.S. Attorney (AUSA) to prosecute and administer legal proceedings, including the handling of warrants and charges. . These investigations can lead to criminal offenses such as imprisonment, seizure, and other judicial actions.
The CFTC and SEC, on the other hand, have regulatory and oversight responsibilities rather than criminal law enforcement powers. They are responsible for enforcing the rules and regulations relating to the commodity and securities markets, respectively, and can take civil enforcement actions against individuals or companies that violate these rules. To properly evaluate crypto-related research, it is important to understand the differences between these institutions. The distinction between departmental bodies with criminal law enforcement powers and regulatory bodies with oversight responsibilities can lead to significant differences in legal procedures and controls. Understanding these differences will give you a better understanding of the scope and nature of crypto-related investigations in the United States.
Investigation period
Law enforcement and regulatory investigations can be lengthy, and it can take years before an indictment is filed. This means that investigations revealed within a year may be related to events that occurred in earlier years. As a result, the announcement of crypto-related claims can be made from 2022 onwards for cases from 2023 onwards.
This feature of law enforcement investigations is exemplified by the number of cryptocurrency-related cases announced in 2022. announced that it had unsealed the indictment Rikesh Thapa has been charged with carrying out a scheme to defraud a startup technology company of $1 million worth of US currency, cryptocurrencies and utility tokens. According to the indictment, Tapa allegedly ran the scheme when he served as his CTO for the company from December 2017 to September 2019.
Similarly, the conviction of Randall Crater, the founder of My Big Coin Pay Inc., for defrauding investors through fraudulent cryptocurrency marketing and sales from 2014 to 2017, will be announced in another 2022 case. An example, but related to some incidents. years ago.
Please note that these examples are not exhaustive and there may be other unpublished cases. As we enter 2023, it’s important to expect that we may see announcements of cases before 2022. The amount of time that has elapsed since an event occurred is not necessarily an indicator of whether an investigation or potential claim will occur. done.
legal proceedings
It is important to note that not all federally pursued cases that result in formal complaints, indictments, judgments, or seizures are made public. Indictments may be sealed by a court or not formally announced through press releases, and investigators or prosecutors may choose not to publicly disclose a particular case for a variety of reasons. This means that it can be difficult to fully understand the scope of the 2022 cryptocurrency survey. This is because only published cases can be analyzed.
However, despite these limitations, there are many notable cases disclosed by US law enforcement and regulatory agencies in 2022 that are worth reviewing and considering as we move into 2023.Help inform future developments in this field
Future prospects
Based on this analysis, it is clear that there is an increasing trend in the number of published crypto research conducted by US federal law enforcement and regulatory agencies. Looking ahead to 2023 and beyond, it’s important to stay informed about changes within the government related to the Web3 space. Because these changes will have a significant impact on our understanding of the ecosystem and scope of cryptocurrencies. Based on current trends, research is likely to continue to grow.
CertiK’s goal is to protect the world of Web3 through our ongoing efforts to provide the highest level of security and due diligence in this area. Understanding these trends will help us better understand the need for security enhancements in Web3.Be sure to follow us to stay up to date with relevant crypto research in the US @CertiKAlert Get real-time alerts on various hacks, scams, and law enforcement announcements on Twitter.
Note: The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject.
*This article is a press release.original source Here*
