US official invites to block “problematic” crypto wallets, even before the government orders it – DiarioBitcoin

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US official invites to block "problematic" crypto wallets, even before the government orders it - DiarioBitcoin For Hannah Perez

Crypto firms should not wait for the US government to sanction an address involved in illicit activity to block it, a FinCEN official noted.


A senior US Treasury Department official has warned the cryptocurrency industry to actively block digital currency wallets”problematic” linked to illicit activities, even before that or another government agency orders it.

Financial Crimes Enforcement Network (FinCEN) Associate Director of Compliance Alessio Evangelista said during a recent event that digital currency service providers should not wait until Treasury sanctions an address to block it. The middle CoinDesk reported, citing the official’s remarks during the LINKS conference, of chain analysis.

With a lot of frequency“cryptocurrency service providers have chosen to maintain a relaxed attitude about blatantly suspicious wallets”until the day of an OFAC designation or criminal indictment”, said Evangelist. The comment refers to the US government list of sanctioned entities.

The Office of Foreign Assets Control (OFAC) is the financial control agency under the Department of the Treasury that administers and applies economic and trade sanctions based on United States policy. FinCEN, also part of the Treasury, is a financial crime enforcement office.

Crypto-companies must take action on the matter

The official went on to point out that companies in the cryptocurrency sector is it so “putting your own reputation at risk by ignoring “clearly observable red flags that they could and possibly should have taken note of long ago“. In addition, he added that he believes that companies in the sector have an obligation to effectively police themselves.

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The comments appear to refer to recent efforts by federal agents across the country to detect and curb digital currency crimes. Last month, the Treasury Department confirmed the connection of a group of hackers North Koreans with the attack of more than USD $600 million to the network roninfrom the popular game Axie Infinity.

At that time, OFAC identified a mailing address ethereum as the person responsible for the hack and included it on its list of sanctioned entities. More recently, this month, the bureau sanctioned a cryptocurrency mixer for the first time for its alleged use in that and other attacks by North Korean cybercriminals. It has also added more crypto addresses to its blacklist.

Evangelista mentioned this recent event during the talk, as collected CoinDesk. “These funds were stolen to support a totalitarian regime that spends its money developing weapons of mass destruction at the expense of feeding its citizens.”he said, referring to North Korea.

The official would also have called out cryptocurrency projects that use the term “decentralization” as a buzzword and a way to circumvent their compliance obligations. Crypto entities that operate under the direction of individuals cannot evade their compliance obligations by falsely calling themselves decentralized, he said.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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