Global Law Enforcement Ramps Up Crypto Crime Crackdown

Agencies worldwide target crypto-based terror financing and organized crime.

Across multiple continents, a coordinated crackdown on cryptocurrency-related crimes is underway. Authorities from London to Sydney have launched operations targeting terror financing, organized crime, and illegal financial services involving digital currencies. These efforts include high-profile arrests and multimillion-dollar asset seizures.

In East London, a 16-year-old is facing charges for attempting to raise funds through cryptocurrency for extremist organizations, including Al Qaeda and the Pakistani Taliban. The teenager allegedly tried to raise about $1,300 in crypto and has pled not guilty to several terrorism-related charges, including providing training. The court has granted bail under strict terms, allowing only offline PlayStation access and restricted laptop usage for educational purposes.

Meanwhile, Australia’s Operation Kraken has seized $6.4 million in cryptocurrency linked to organized crime. The Australian Federal Police (AFP) have arrested Jay Je Yoon Jung, 32, of New South Wales, for his involvement in supporting criminal operations via the Ghost encrypted app. Key to the AFP’s success was cracking a seed phrase, demonstrating law enforcement's advancing capabilities in tackling complex crypto-related crimes.

In the United States, legal pressures have led Bitcoin mixing services to stop operations following arrests of prominent developers, including Samourai Wallet creators Keonne Rodriguez and William Lonergan Hill. Authorities allege the service processed over $2 billion in transactions, with a significant portion suspected to be tied to illegal activity. The recent crackdown underscores concerns around crypto’s use in illicit financial transactions and the push to limit such operations.

Israel, too, has made strides by seizing 40 crypto wallets linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) and Hezbollah, marking one of its largest such operations to date. The transparency of blockchain technology has been instrumental for authorities tracking and disrupting these illicit financial flows.

Former CIA officials confirm that blockchain’s public ledger provides advantages for tracking illegal transactions, with Chainalysis and other analytics firms showing that while crypto-crime remains a concern, terrorist financing makes up a small fraction of crypto transactions overall.

The UK’s Old Bailey is set to hear the East London teen’s case on November 2, underscoring the complexities of dealing with young individuals involved in serious financial crimes. Blockchain’s transparency continues to assist international authorities in adapting their methods to counter the fast-evolving landscape of crypto-financed crime.

photo source / Blockonome