- Amidst the increasing sanctions on Russia for its attack on Ukraine, the US Justice Department has announced the creation of a new crypto task force.
- Further, the Department revealed that the task force would be called “Kleptocapture” and target crypto exchanges helping Russian oligarchs.
- Meanwhile, the Ruble is continuously decreasing versus the dollar. There are concerns that this could further increase inflation, which has already climbed to 20%.
The US Justice Department announces the creation of a new task force whose target will be crypto exchanges who are helping Russian oligarchs transfer their money, as the sanctions intensify on Russia for its invasion of Ukraine by the U.S. and its allies.
On Thursday, in a statement, the Department of Justice revealed that the “Kleptocapture” task force would consist of professionals in expert control enforcement, asset forfeiture, tax enforcement, overseas evidence gathering, and anti-money laundering.
A seasoned U.S. corruption prosecutor from the Southern District of the New York Attorney’s Office will be supervising it.
Leading Crypto Exchanges Supports Sanctions
Popular crypto exchanges such as Coinbase and FTX claim to act in accordance with sanctions. They are already working as per the instruction of conventional financial institutions to collect data on their consumers and recognize suspicious activities.
Last Monday, Coinbase, an American cryptocurrency exchange, disclosed that it had blocked 25,000 accounts linked to Russian users, who were suspects of carrying out illegal activity.
In addition, the U.S. Treasury Department appealed to financial institutions, such as mentioned above, to be watchful of Russian oligarchs and government institutions trying to evade sanctions through Bitcoin.
Throughout the previous week, cryptocurrency exchanges around the globe were pressurized to ban transactions with Russia. But on the contrary, trade between the Russian Ruble and cryptocurrencies since the country’s invasion of Ukraine has more than quadrupled.
Leaders are afraid that digital assets can be used to evade western sanctions imposed on Russia and hence the warning to ban transactions with Russia. Wall Street, jewelry companies, casinos, insurance, banks are pointed out to be particularly susceptible.
Ruble Falls Down Versus Dollar: Government Put These Implications On Foreigners In Response
The Ruble is continuously falling in comparison to the dollar. As a consequence, there is fear rising among Russians that this devolution will increase inflation, which has already reached 70%.
In order to discontinue this decline, on Friday, the central bank of Russia has increased its benchmark rate to 20%. In addition, Foreigners are not allowed to sell their domestic securities in Russia. On the other hand, the local exporters are being urged to liquidate a vast portion of their foreign currency holdings.
What Are The Powers “Kleptocapture” Has?
In the meantime, the Kleptocapture task force will be exclusively authorized to leverage advanced investigative techniques such as cryptocurrency tracing, foreign intelligence sources, data analytics, and relevant data from financial regulatory agencies and private sector partners.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/03/14/u-s-creates-new-crypto-task-force-to-stop-russias-oligarchs-money/