Binance Research shares a page on the crypto ecosystem

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In 2022, several notable cryptocurrency-related federal indictments, convictions, and seizures were made public in the United States. To understand the extent and nature of government activity in Web3, CertiK conducted research and analysis on the state of federal and regulatory crypto investigations in 2022. The investigation into civil and criminal lawsuits related to cryptocurrency is an important part of CertiK’s mission to secure the Web3 world.

SourceAnalysis of surveys in 2022

CertiK has compiled all publicly available data on crypto investigations from various law enforcement and regulatory agencies for 2022. It should be noted that the scope of data collected is limited to investigations that have been made public, as many many investigations remain sealed and unannounced.

According to our data, there were a total of 96 publicly disclosed crypto-related investigations in 2022. The Federal Bureau of Investigation (FBI) was responsible for the largest share of these cases, with 42 investigations accounting for 43.3% of the total. total. The United States Secret Service (USSS) was the second largest contributor, with 20 cases, or 20.6% of the total. It should be noted that the data may include some cases involving inter-agency collaboration. The table below provides a breakdown of the number of investigations by agency in 2022.

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The disclosed status and outcome of crypto-related investigations varied between different law enforcement and regulatory agencies. Most investigations resulted in charges and indictments, and some law enforcement agencies also announced seizures and penalties for their investigations. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which are regulatory bodies, only announced charges and indictments because they deal with civil charges which do not follow the same legal process. than law enforcement agencies.

The high number of charges and indictments in 2022 suggests that we could see sentences handed down in 2023 for defendants who pleaded or are found guilty in these cases. It is important to note that the legal process can be complex and the outcome of an investigation may not always be immediately known. By staying informed of the latest developments in crypto-related government investigations, we can better understand the state of Web3 and efforts to combat illicit activity in the space.

SourceAn upward trend

Data compiled by CertiK shows a significant increase in the number of crypto investigations conducted and publicly disclosed by US federal law enforcement and regulatory agencies from 2021 to 2022. Specifically, there was an 81% increase of the total number of investigations, with 53 publicly released cases in 2021 compared to 96 cases in 2022. This trend is important to note, as it suggests that efforts to combat illicit activity in the Web3 space are increasing. It is likely that this upward trend will continue in the coming years, given the intensification of law enforcement and regulatory efforts in this area.

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The increase in crypto surveys is significant for a number of reasons. One of the contributing factors is increased efforts and funding from law enforcement agencies for the formation and support of cryptocurrency task forces. For example, the FBI launched its Cryptography Task Force in February 2022, and the number of disclosed cases doubled from 20 in 2021 to 40 in 2022. Similarly, the USSS launched an Awareness Center at cryptocurrency in February 2022, and the number of disclosed cases also doubled from 9 in 2021 to 20 in 2022.

Characteristics of U.S. Federal Law Enforcement and Regulatory Agency Investigations

To fully understand the scope of crypto-related business in the United States, it is essential to understand the roles and responsibilities of the various federal law enforcement and regulatory agencies. These agencies have different jurisdictions and capacities, and their investigations can be conducted in different ways. By gaining a deeper understanding of these factors, we can better understand the overall state of crypto investigations in the United States.

Typology and jurisdiction of agencies

It should be noted that in addition to federal agencies, there are also state and local law enforcement agencies that are also involved in crypto-related investigations.

In the United States, there are five main federal agencies responsible for investigating crypto-related crimes: the Federal Bureau of Investigation (FBI), the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service Criminal Investigation Unit ( IRS-CI), the United States Secret Service (USSS) and the Securities and Exchange Commission (SEC). Each of these agencies has specific duties and responsibilities when it comes to crypto investigations, and the complex nature of government jurisdiction can make it difficult to fully understand the scope of these investigations.

SourceLaw Enforcement Agencies Vs. Regulatory Agencies

The FBI, USSS, and IRS-CI have criminal law enforcement capabilities and work closely with the DOJ’s Assistant United States Attorneys (AUSA) to prosecute and manage legal proceedings, including the processing of warrants and indictments. These investigations may result in criminal offenses, such as prison terms, seizures and other legal actions.

On the other hand, the CFTC and SEC have regulatory and supervisory responsibilities, rather than criminal law enforcement powers. They are responsible for enforcing the rules and regulations relating to the commodities and securities markets, respectively, and can take civil enforcement action against individuals or companies who violate these rules. It is important to understand the differences between these agencies to properly assess crypto-related investigations. The distinction between departmental agencies with criminal law enforcement powers and regulatory agencies with oversight responsibilities can lead to very different legal procedures and management. By understanding these differences, we can better understand the scope and nature of crypto-related investigations in the United States.

Duration of investigations

Law enforcement and regulatory investigations can be lengthy and take years before charges are laid. This means that it is possible for investigations uncovered in one year to relate to events that occurred in previous years. As a result, crypto fee announcements may be made for cases in 2022 through 2023, and beyond.

This feature of law enforcement investigations is exemplified in numerous crypto-related cases that were announced in 2022. For example, on December 7, 2022, the Department of Justice’s US Attorney’s Office for the Southern District of New York announced the unsealing of an indictment charging Rikesh Thapa for operating a scheme to defraud a tech startup worth more than $1 million in US currency, cryptocurrency currency and utility tokens. According to the charges, Thapa carried out the scheme while serving as the company’s CTO between December 2017 and September 2019.

Similarly, the conviction of Randall Crater, founder of My Big Coin Pay Inc., for defrauding investors through the marketing and sale of fraudulent virtual currency between 2014 and 2017 is another example of a case announced in 2022 but related to events several years before.

It should be noted that these examples are not exhaustive and there may be other cases that have not been made public. As 2023 approaches, it is important to expect to see case announcements from 2022 and earlier, as the time that has elapsed since an event occurred is not necessarily a indicator as to whether or not an investigation or potential charges will take place.

Legal proceeding

It is important to note that not all cases prosecuted by the federal government that result in a formal complaint, indictment, conviction or seizure are made public. Indictments may be sealed by the courts or not officially announced through press releases, and investigators or prosecutors may choose not to publicly disclose certain cases for various reasons. This means that it can be difficult to fully understand the scope of crypto investigations in 2022, as we can only analyze cases that have been made public.

However, despite these limitations, there have been many notable cases disclosed by U.S. law enforcement and regulatory agencies in 2022 that merit review and thought as we move forward into 2023. These cases provide insights valuable information on the state of crypto investigations in the United States and can help inform future developments in this area

Look forward

Based on this analysis, it is clear that there has been an upward trend in the number of crypto investigations conducted and made public by US federal law enforcement and regulatory agencies. As we move forward into 2023 and beyond, it is important to stay informed of changes in government related to the Web3 space, as these changes will have significant impacts on the ecosystem and understanding of the reach of crypto. -cash. Based on current trends, it is likely that inquiries will continue to increase in the years to come.

At CertiK, our goal is to secure the Web3 world through continuous efforts to provide the highest level of security and due diligence in the space. Understanding these trends helps us better understand the need for more security in Web3. To stay up to date on relevant U.S. crypto investigations, be sure to follow @CertiKAlert on Twitter for real-time alerts on a wide range of hacks, scams, and law enforcement announcements.

Note: The information 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. *

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