Stefan Jerga said the new unit must disrupt organized criminal syndicates through forensic intelligence to stop fraud before it occurs. He commented that fraud like money laundering robs the government of resources necessary to serve its citizens.
The Australian Federal Police (AFP) launched a new unit to fight money laundering through cryptocurrencies, making crypto fraud more difficult.
Stefan Jerga, the National Head of Criminal Forfeiture for the AFP, said they formed the new task force to face illegal cryptocurrency use. He pointed out that the unit has already stopped more than USD 600 million in illicit profits.
The team provides invaluable traceability services to other AFP divisions in addition to seizing assets. They can do it thanks to their ability to examine transactions across multiple blockchains.
An executive from AUSTRAC proposed the idea for the new unit, noting that the ability of cryptocurrencies to cross international borders seamlessly attracted criminals. He explained that crypto assets have become increasingly relevant in the financial systems, leading malicious actors to take advantage of them.
Jerga Thinks Australian Crypto Fraud Has Escalated
After AFP Commissioner Reece Kershaw formed it, the unit seized luxury goods, like cars and cryptocurrencies, worth USD 35 million.
According to Jerga, the escalation in crypto-related crime since the first AFP seizure warranted a new team of specialists seeking to gain additional skills. The AFP claimed that cryptocurrency frauds had grown during the COVID-19 pandemic, which required further direct law enforcement.
Jerga considers that the responsibility of the new unit is to disrupt organized criminal syndicates through the forensic intelligence unit. He pointed out that the team would seek to stop fraud before it occurs rather than recover lost profits.
Ian McCartney, the AFP Deputy Commissioner for Investigations, stated that cybercriminals hate police squads that can disrupt their activity.
In addition, he also commented that fraud like money laundering robs the Australian government of resources necessary to serve its people. In 2015, a task force called the Serious Financial Crimes Task Force emerged to prevent this multi-million dollar loss of revenue. The funds they recover from fraud go to a government account for use in community projects.
The FBI and the DoJ Take Counterterrorism Actions to Fight Cybercrime
In February, the Federal Bureau of Investigation (FBI) announced the upcoming launch of the Virtual Assets Exploitation Unit to disrupt crime syndicates. That happened after Chainalysis reported in 2021 that almost USD 11 billion worth of cryptocurrencies had questionable sources.
The FBI wants to exploit its tools to detect cybercrime before it occurs, similarly to counterterrorism methods employed after 9/11. The Virtual Assets Exploitation Unit emerged with the idea of working with a team of prosecutors from the US Department of Justice (DoJ).
The relevance of crypto assets in the economic system is increasingly evident, which cybercriminals do not overlook. That has led regulators in various countries to take measures to prevent those malicious actors from committing fraud.
Meanwhile, Bitcoin is trading at around USD 19,963 and has accumulated a 1.0% gain over the last week. While its daily trading volume is above USD 29.72 billion, its market capitalization is about USD 382.15 billion, according to CoinGecko.
By Alexander Salazar
