The Secret Service has reportedly seized more than $100 million in cryptocurrency since 2015 in an effort to crack down on fraudulent digital currency transactions.
David Smith of the Secret Service told CNBC that his office has been tracking the flow of Bitcoin and other cryptocurrencies on the blockchain to prevent and combat fraudulent activities.
“When you follow a digital currency wallet, it’s not different than an email address that has some correlating identifiers,” Smith, the assistant director of the agency’s Office of Investigations, told the outlet.
“And once a person and another person make a transaction, and that gets into the blockchain, we have the ability to follow that email address or wallet address, if you will, and trace it through the blockchain,” he added.
CNBC reported Tuesday, citing data from the agency, that the Secret Service has seized $102 million in crypto funds across more than 250 cases over the past seven years.
The Secret Service said it went after a Russian cyber crime group that used a crypto exchange to launder illicit funds, and the agency also blocked a ransomware operation tied to Russian and North Korean criminals.
In a statement to The Hill, a Secret Service spokesperson confirmed the CNBC reporting, adding that the data was provided during the course of the interview.
The spokesperson also said that the Secret Service will continue to evolve as new cyber threats emerge.
“Investments and transactions using cryptocurrencies and digital assets are not inherently criminal, however they do provide a new opportunity for those seeking to do harm to exploit a vulnerability or a new opportunity,” the spokesperson said, adding that regardless of the type of transaction conducted, the agency “will ensure that the transaction is conducted within a safe and secure national financial environment.”
The crypto seizure follows a government advisory issued on Monday about the rising cyber threats related to cryptocurrency.
In the advisory, the FBI, the Cybersecurity and Infrastructure Security Agency and the Department of the Treasury said that a North Korean cybercrime group has been targeting several organizations in the cryptocurrency industry, tricking users to download illegitimate crypto applications through their devices. The group then uses the fake applications to gain access to the network and steal private information.
Just last week, the FBI announced that North Korean hackers, known as the Lazarus Group, stole more than $620 million in cryptocurrency in March from the virtual game Axie Infinity. That same month, the Treasury Department sanctioned two Chinese nationals for their role in a 2018 cyber breach involving stolen cryptocurrency. According to the agency, the breach was linked to the Lazarus Group.
The FBI said it would “continue to expose and combat [North Korea’s] use of illicit activities — including cybercrime and cryptocurrency theft — to generate revenue for the regime.”
Updated: 6:20 p.m.