The U.S. Treasury will soon release a risk assessment analyzing the criminal use of DeFi (decentralized finance).
“Cheat actors are always looking for effective ways to hide their criminal activities and laundering their proceeds,” said Elizabeth Rosenberg, “threats to DeFi services and other elements of the crypto ecosystem.” ), the Assistant Secretary for Terrorism Financing and Financial Crimes, said at a banking event in Sydney, Australia, Thursday.
The team is “actively working” on a risk assessment that will be released soon, he said.
Due to the “tremendous” growth of crypto assets, the industry often puts “regulatory and financial crime compliance on the back burner,” said Rosenberg. The potential damage from the criminal use of crypto assets is “theft of hundreds of millions of dollars worth of crypto assets in ransomware attacks, the laundering of illicitly obtained funds through services such as Mixer, and the launching of North Korea’s illegal nuclear weapons and ballistic missiles.” It’s been shown by North Korea-related groups to fund development programs,” he said.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Original: US Treasury Poised to Release View on How DeFi Used in Illicit Finance