The U.S. Department of Justice (DOJ) is taking decisive action to address the rising crime rate within the crypto industry. With a focus on crypto exchanges, mixers, and tumblers, the DOJ aims to crackdown on platforms that enable malicious actors to carry out their illicit activities. By ramping up scrutiny and imposing stricter regulations, the DOJ intends to discourage buasinesses from facilitating illegal transactions and profiting from criminal enterprises.

Targeting Crypto Exchanges, Mixers, and Tumblers:
As reported by the Financial Times on May 15, the director of the national cryptocurrency enforcement team, Eun Young Choi, emphasized the DOJ’s commitment to tackling crypto-related crimes. The agency’s primary objective is to target crypto platforms, including exchanges, mixers, and tumblers, which have been instrumental in facilitating criminal activities.

Choi highlighted the need to deter bad actors from utilizing these platforms to profit from their illegal endeavors, as their actions enable other criminals to easily cash out. The DOJ believes that by focusing on these types of platforms, they can create a domino effect, disrupting the entire criminal ecosystem within the crypto space.

The Persistence of Crypto Mixers and Exchanges in Criminal Activities:
Over the years, malicious players have increasingly exploited crypto mixers and exchanges as a means to launder their ill-gotten gains. In response, the U.S. authorities have taken action by imposing sanctions on mixers such as Tornado Cash, which have been implicated in facilitating the laundering of illicit funds.

Despite these sanctions, the usage of protocols like Tornado Cash remains high. As of April 30, malicious players had transferred more than 1,000 ETH and 2,515 BNB into Tornado Cash, underscoring the ongoing challenge faced by regulators in curbing money laundering activities.

DOJ’s Focus on DeFi Exploits:
In addition to cracking down on crypto exchanges and mixers, the DOJ is also turning its attention towards decentralized finance (DeFi) and, more specifically, chain-bridge hacks. Choi emphasized the significance of this issue, particularly due to the prevalence of North Korea-backed hackers engaging in such activities.

Chain bridges serve as a crucial mechanism for users to transfer assets between different blockchains. Unfortunately, these protocols have become a prime target for attacks, resulting in losses exceeding $2 billion last year, with a majority of these attacks attributed to hackers sponsored by North Korea.

Apart from the North Korea-linked attacks, DeFi platforms have fallen victim to numerous exploits. In April alone, 41 exploits on various crypto projects led to a staggering $93.4 million being stolen. This alarming trend highlights the urgent need for enhanced security measures and regulatory oversight within the DeFi space.

The US DOJ’s decision to escalate its scrutiny of the crypto industry, focusing on crypto exchanges, mixers, and DeFi exploits, demonstrates a commitment to combatting criminal activities within the