In a Reddit "Ask Me Anything" session, the U.S. Secret Service and the Bay Area Regional Enforcement Allied Computer Team (REACT) answered questions on how they work with blockchain technology to track financial crimes and maintain a collection of NFTs.
Are you trying to keep your financial transactions hidden from the authorities? The U.S. Secret Service has a simple suggestion: "Use cash."
In a recent Reddit "Ask Me Anything" session, the Secret Service and the Bay Area Regional Enforcement Allied Computer Team (REACT) from California shared insights into how they investigate crypto crimes, protect against "pig butchering" scams, maintain a collection of NFTs, and ensure the privacy of financial transactions.
Held on the r/CryptoCurrency subreddit, the two-hour-long session aimed to educate crypto users about the role of law enforcement in the cryptocurrency world. Although criminals may prefer cryptocurrencies, the officials explained that blockchain technology is actually a valuable resource for tracking financial crimes.
REACT task force stated, "The blockchain provides us with an amazing opportunity to track the flow of money."
The U.S. Secret Service's San Francisco Field Office and REACT responded to the rising number of crypto hacks worldwide, which saw nearly $776 million stolen in 32 separate attacks on decentralized finance (DeFi) protocols in the previous year, according to Chainalysis data.
Both the Secret Service and REACT have dedicated teams to handle cryptocurrency-related crimes. The Bitcoin white paper is considered "required reading for any new agents on our squad!"
REACT, a task force of local detectives and federal partners, was established in the late 1990s by the California legislature to tackle "high tech crimes." They have been focusing on "pig butchering" crypto thefts, where scammers gain victims' trust before stealing their cryptocurrency. The task force claims to have recovered millions of dollars in stolen funds and returned them to victims.
The Secret Service reassured users that law enforcement has the tools to monitor crypto as effectively as it does traditional finance. It also noted that crypto-related money laundering is relatively smaller compared to fiat currency laundering, as per a U.S. Treasury Department report from last year.
In addition to solving crypto crimes, finding victims can be a challenging task for law enforcement. The Secret Service shared an example of finding a victim on Reddit who had not reported their investment scam through official channels like the Internet Crime Complaint Center (IC3). The victim was contacted through Reddit to file an IC3 report, ultimately leading to the recovery of their money.
During the lighthearted moments of the session, one user asked if the Secret Service had ever considered releasing a token or memecoin. The agency took the opportunity to showcase the NFT collection it created and minted last year, featuring agents in San Francisco locations such as Alcatraz and Chinatown.
The Secret Service concluded, "We try to learn as much about the various digital assets in this space," signing off as "Mr Secret."
Juliette Twain: Jun 19, 2023 11:48:10 AM
