White Collar Lawyers Quoted in Law360 Article on New DOJ Cryptocurrency Enforcement Team

October 12, 2021

Joseph Facciponti and Steven Feldman of Murphy & McGonigle’s White Collar Defense, Investigations & Compliance Counseling Practice were featured in a Law360 article published on October 8 entitled, "New DOJ Crypto Team Puts Exchanges In Hot Seat." Both attorneys provided insight into the U.S. Department of Justice’s recently announced National Cryptocurrency Enforcement Team (NCET) and what it means for cryptocurrency exchanges, infrastructure providers, and cybercriminals.

The Department of Justice’s new taskforce plans to crack down on illicit uses of digital assets, such as ransomware payments and money laundering. In the article, Mr. Facciponti and Mr. Feldman discuss how the creation of the NCET signals the DOJ’s heightened interest in digital assets at a time when cyberattacks and crypto investing are becoming more mainstream.

"In some ways, [cryptocurrency] has enabled these kinds of ransomware attacks," said Mr. Feldman.

Mr. Facciponti told Law360 that digital asset companies, including exchanges, should "be prepared for potential unpleasant surprises from law enforcement that they may not have had to deal with in the past. It's time to hire a compliance team and get senior management focused on how they can mitigate their [anti-money laundering] risk, potential securities fraud violations, and any other kind of criminal activity that could be facilitated or related to their use of cryptocurrencies."