The cryptocurrency exchange Binance has been facing tough times this year. The lawsuits from Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have caused serious tensions in the industry. In the wake of this, Justice Department is overhauling a team it established nearly two years ago to investigate crimes tied to cryptocurrencies. The Department said that the move will more than increase the number of prosecutors available to work on the team’s expanding caseload, WSJ reported.
Note that this move comes after the exchange laid off over 1000 in response to an ongoing Justice Department investigation that will probably result in a consent decree or settlement.
The New Crypto Enforcement Team
The National Cryptocurrency Enforcement Team, or NCET, would be a permanent fixture of a branch inside the department’s criminal division that handles a variety of computer-related investigations, according to a speech given by top Justice Department official Nicole Argentieri on Thursday.
After Eun Young Choi, the team’s current director, leaves, Claudia Quiroz will take over as acting director, according to Argentieri. According to a department official, Choi will be moving on to a new post inside the Justice Department.
In 2021, the Justice Department established NCET. Since then, a slump in the sector and the demise of the cryptocurrency exchange FTX have increased the team’s output and profile. Sam Bankman-Fried, the creator of FTX, is accused by prosecutors of defrauding lenders and investors out of billions of dollars while stealing from the exchange’s clients.
Should Binance Supporters Be Worried?
The Justice Department’s crypto-related cases have frequently involved the crypto team. It has helped with a probe into Binance, as well. The wave of withdrawals might further destabilize the exchange as it deals with a barrage of lawsuits from American regulators. Since then, despite claims of a protracted Justice Department investigation into the company and its founder and CEO, there have been speculations of an eventual indictment against Binance and Zhao. Whether the new team will have a significant role in the JOD investigation on Binance is still to see.
At its peak in February, Binance held 57.5% of the global average monthly volume on cryptocurrency exchanges. But according to the FT, that figure has now fallen to 43%.
