DOJ Publishes Second Report on EO Digital Property Crime, Announces New Expert Network

The United States Department of Justice (DOJ) published its latest report on September 16 in response to President Joe Biden’s March Executive Order (EO) on the development of digital assets. Coordination Network (DAC) “Strengthening the Department’s efforts to combat the growing threat of illegal use of digital assets to the American public.

The report complements the International Law Enforcement Cooperation’s June report titled “The Role of Law Enforcement in Investigating, Prosecuting and Prosecuting Criminal Activities Related to Digital Assets.”

The new report identifies the criminal exploitation of digital assets and examines the efforts of various federal departments and agencies to prevent crimes related to digital assets, with a particular focus on non-cash tokens (NFTs) and decentralized finance (DeFi). It recommends various measures to strengthen law enforcement efforts.

The report’s priorities include expanding the definition of “financial institution” in relevant laws, extending anti-tipping provisions, extending the criminal law’s application to the business of unlicensed money transmitters, and extending statutes of limitations for certain offences.

Related: New Crypto Litigation Tracker Highlights 300 Cases From SafeMoon to Pepe the Frog

The report also suggests changes in the preservation and provision of evidence and recommends strengthening penalties and other laws, particularly the Bank Secrecy Act. It also recommends “adequate funding” for the efforts, including employment incentives and employment policy changes.

The DAC has already been launched under the leadership of the National Cryptocurrency Enforcement Team, a body established in February after its announcement last year. The network held its first meeting on September 8.

The coordinators are more than 150 federal prosecutors from US attorneys’ offices and DOJ’s litigation units. It is expected to be the “department’s primary platform” for training and guidance on investigating and prosecuting digital property crimes. DAC members are designated as their office’s subject matter experts on digital assets. It seems that they receive special training to serve in this role.