At the same time, it announced the establishment of a new Digital Asset Coordinator Network (DAC). The network aims to support the department's efforts to address the rising threat posed by the illicit use of digital assets by American citizens.
The report, dubbed “The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets,” supplements its June report on international law enforcement cooperation.
The new report outlines the criminal exploitation of digital assets, with a focus on non-fungible tokens (NFTs) and decentralized finance (DeFi). The report further examines the activities of several government ministries and agencies to combat digital asset crime. It suggests a number of strategies to strengthen law enforcement activities.
The priority proposals in the report are to enlarge the definition of financial institutions under the applicable legislation in order to extend anti-tip-off provisions. In addition, the proposal intends to amend the criminal law as it pertains to unlicensed money-transferring firms and to prolong the statute of limitations for certain acts.
The report also suggests modifications to the preservation and provision of evidence. The report further suggests strengthening penalties and other reforms to laws, including the Bank Secrecy Act. Additionally, it proposes adequate funding for its activities, such as job incentives and changes in recruiting policies.
The DAC has already been established under the authority of the National Cryptocurrency Enforcement Team, a body established in February after being announced last year. On September 8, the network conducted its first meeting.
Over 150 federal attorneys from U.S. Attorneys' Offices and the DOJ's litigating components serve as coordinators. It is expected to be the department's primary platform for training and guidance on investigating and prosecuting digital asset offenses. DAC members are appointed as the subject-matter expert on digital assets in their offices. They will apparently undergo specific training to serve in that role.
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