There appears to be an increase in crime related to cryptocurrency as blockchain technology continues to expand.

The United States Immigration and Customs Enforcement recently reported an investigation by the Brazilian National Police, the US Homeland Security Investigations (HSI) and other law enforcement agencies that led to the disruption of cryptocurrency-related fraud in several countries, but with a base operational in Curitiba, Brazil.

A US investigation has revealed that 37-year-old Brazilian citizen and former US resident Francisley Valdevino da Silva is the leader of a crypto fraud network. Investors from more than a dozen countries were misled into believing that there was a well-organized high-end crypto-financial product, when in fact the organization was promoting fraudulent cooperation and licenses that enticed victims to invest millions of dollars in questionable crypto. Ultimately, the cryptocurrency had little to no value.

Brazilian authorities have also identified similar fraudulent activity in Brazil with around $800 million transferred through the Brazilian banking system alone, in addition to illegal profits transferred through cryptocurrencies.

Governments that regulate crimes related to cryptocurrencies

The rise of online activities has created an opportunity for the growth of criminal activities in the digital ecosystem. Therefore, different governments around the world have implemented measures to combat such activities.

The US Department of Homeland Security hopes to put an end to the growing cases of money laundering by creating a special unit called the Cyber ​​Fraud Task Force (CFTF). To effectively monitor and stop illegal activity online, CFTF investigators must be able to analyze a computer network, monitor IP addresses, and coordinate with Internet Service Providers (ISPs) to identify suspicious activity.

The Financial Crimes Enforcement Network (FinCEN) has also proposed methods for companies operating in the crypto space, in particular exchanges. In the proposal, non-hosted wallets must be properly monitored and transactions over $3,000 from non-hosted wallets must be verified before concluding transactions with them.

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