Wally Adeyemo, undersecretary of the U.S. Treasury, issued a stern warning to cryptocurrency companies suspected of engaging in illegal activity.
"I want to speak directly to those in the digital asset industry who believe they are above the law, to those who willfully turn a blind eye to the law, and to those who promote assets and services that aid criminals, terrorists, and rogue states. My message is simple: we will find you and bring you to justice," Adeyemo said.
Data from the Office of Financial Research shows that in 2021 alone, companies reported more than 2 billion transactions totaling $1.4 trillion related to virtual currency.
Despite the tremendous opportunities digital assets offer to drive innovation, Adeyemo believes it is critical that the industry proactively take steps to prevent digital assets from being used for criminal purposes and intent.
Adeyemo cited cryptocurrency exchange Binance's recent legal troubles with the U.S. Department of Justice.
"Binance allowed itself to be used in over 100,000 transactions by criminals guilty of child sexual abuse, drug trafficking, and terrorism. These transactions were conducted by groups such as Hamas, al-Qaeda, and ISIS," he said.
However, the U.S. Treasury Undersecretary said a number of companies have heeded our call and taken steps to prevent illegal activities, but many continue to ignore the law, posing a direct threat to national security.
Adeyemo stressed that today, the government and the traditional financial sector have joined forces to prevent the flow of illicit proceeds. In addition, tools are being actively developed to effectively combat the illicit financing of criminal and terrorist organizations.
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