The US Deputy Attorney General Rod ROSENSTEIN has called for international co-operation to fight against cybercrime with cryptocurrencies. Speaking at Interpol’s 87th General Assembly last week, Rod Rosenstein said that “we must not allow cybercriminals to hide behind cryptocurrencies“.
ROSENSTEIN noted that, while virtual currencies have “legitimate uses”, bad actors are using them for illicit activities, such as Alexander VINNIK, who allegedly ran a crypto-based money laundering scheme for criminals who wanted to hide ill-gotten gains. VINNIK, a 38-year-old Russian national, was arrested last year at the request of the U.S. while he and his family were vacationing in Greece. A U.S. grand jury has indicted VINNIK on 21 counts, charging him for operating alleged international money laundering scheme and allegedly laundering funds from the hack of now-defunct crypto-exchange Mt. Gox.
According to Rosenstein, Bitcoin was the main method of payment for the WannaCry ransomware attack that caused billions of dollars in losses. “In addition, fraudsters use the lure of coin offerings and the promise of new currencies to bilk unsuspecting investors, promote scams, and engage in market manipulation,” he said.
He added that the challenges of regulating, seizing, and tracing virtual currencies call for “a multinational response“. “We must work together to make clear that the rule of law can reach the entire blockchain.” Rosenstein demands to implement policies that mitigate the risks posed by cyrptocurrencies to prevent them from being abused by “criminals, terrorist financiers, or sanctions evaders“.
“My country includes virtual currencies in our anti-money laundering regulations. And the Financial Action Task Force urges all nations to make clear that global anti-money laundering standards apply to virtual currency products and service providers. We must guard against abuses of digital currency.”
FinTelegram highly welcomes this call for international co-operation to fight cybercriminals and money laundering in the crypto space. Cleaning the crypto space from those bad actors is of utmost importance for the development of a sustainable crypto-economy.
