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(Kitco News) - Amid the push to regulate the growing digital asset market, authorities in the U.S. have announced the official formalization of the Darknet Marketplace and Digital Currency Crimes Task Force (DNMDCC Task Force).
According to a press release from the United States Attorney’s Office in the District of Arizona, U.S. Attorney Gary M. Restaino, Homeland Security (HSI) Special Agent in Charge (SAC) Scott Brown, Internal Revenue Service (IRS) Criminal Investigation SAC Al Childress, Drug Enforcement Agency (DEA) SAC Cheri Oz, and United States Postal Inspection Service Acting Inspector in Charge Greg Torbenson signed a Memorandum of Understanding (MoU) on Thursday making the DNMDCC Task Force official.
While the signing of the MoU makes the task force official, the collaboration has actually been working to crack down on the darknet drug market and other crypto-related crimes for more than six years.
“Since 2017, these federal partners have focused on darknet drug vendors and cryptocurrency-enabled crimes,” the release said. “Ever-evolving technology has allowed drug traffickers and other criminal actors to expand into the digital world and use the darknet to engage in their illegal activity. As these criminal activities and enterprises have become more sophisticated, law enforcement tools, resources, and intelligence have had to adapt.”
The release went on to outline several high-profile cases involving illegal activities on the darknet that have been investigated and prosecuted in Arizona, highlighting the growing sophistication of such markets for illicit activities.
“HSI and our partners have been working at the forefront of combating criminal activities facilitated through the use of cryptocurrency on dark web marketplaces and other anonymous platforms,” said Scott Brown, special agent in charge for HSI Arizona. “This taskforce will have impactful repercussions on those criminal operators who attempt to grow their businesses and launder the illicit proceeds through advancing technology. HSI looks forward to growing in this investigative space alongside our law enforcement partners.”
The Attorney’s Office said there has been a notable rise recently in the use of both the standard internet and darknet to facilitate the illegal sale and distribution of narcotics, firearms and parts, technologies, Personal Identification Information (PII), and other contraband – and digital currencies are increasingly being used to facilitate these activities.
According to a Twitter post from Homeland Security, investigations by the agency resulted in the seizure of “nearly $4 billion in cryptocurrency from illicit activities” in 2022.
The parties involved with the MoU agree that “the unique investigative capability of a DNMDCC Task Force will serve the needs of all the communities within the District of Arizona,” and can serve as a model for other agencies to follow.
“We’ve done great work with our federal partners in the dark web and crypto space,” said United States Attorney Gary Restaino. “This task force will enable us to continue the great collaboration with USPIS, DEA, IRS-CI and HSI, and I look forward to robust interdiction and prosecution efforts to deter digital crimes.”
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The stated mission of the DNMDCC Task Force is to “disrupt and dismantle criminal organizations that are exploiting the appearance of anonymity on the darknet or using digital currency to facilitate criminal activities, such as drug trafficking, money laundering, theft of PII, and child exploitation.”
It intends to achieve this goal by providing increased collaboration, enhancing resources, and disrupting and dismantling criminal organizations that are using these new and emerging technologies.
“IRS-CI is increasingly dedicating more investigative time and agent expertise to tackle darknet and cryptocurrency crimes,” said Special Agent in Charge Albert Childress of the IRS Phoenix Field Office. “Our agents excel in addressing sophisticated cyber-related schemes and are up to the challenge of locating and apprehending criminals who try to hide in the digital world.”
“DEA is committed to saving lives,” said DEA Special Agent in Charge Cheri Oz. “Drug traffickers who are hiding in the darknet will be aggressively targeted and unmasked by this task force.”
