Legal Issues

IRS, Other Agencies Formalize Creation of Dark Web Task Force

IRS, Other Agencies Formalize Creation of Dark Web Task Force

The IRS Criminal Investigation Division (IRS-CI), the U.S. Attorney General's office, and other government agencies have formalized the creation of a task force that will target cryptocurrency activity on the dark web.

According to the IRS, last week, a Memorandum of Understanding (MOU) officially creating the Darknet Marketplace and Digital Currency Crimes Task Force (DNMDCC Task Force) was signed by U.S. Attorney Gary M. Restaino, IRS-CI SAC Albert Childress, HSI SAC Scott Brown, DEA SAC Cheri Oz, and United States Postal Inspection Service Acting Inspector in Charge Greg Torbenson. 

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Credit: d3sign/Getty Images

Since 2017, the agencies involved in the task force have been focused on catching darknet drug traffickers and illegal cryptocurrency exchanges. The dark web serves as the perfect platform for criminals to launder illicit funds.

In one recent case, for instance, an Ohio man was sentenced to 51 months in federal prison for a bitcoin theft scheme involving an online money laundering operation. In this situation, the defendant utilized a “mixer” or “tumbler" -- a service that mixes illegal cryptocurrency funds with "good" currency, with the intention of masking the original source. 

Although the Ohio case was not officially overseen by the task force, it is an example of the types of crimes they will be investigating.

Several government officials spoke out about the official creation of DNMDCC, with United States Attorney Gary Restaino saying, "We've done great work with our federal partners in the dark web and crypto space. This task force will enable us to continue the great collaboration with USPIS, DEA, IRS-CI and HSI, and I look forward to robust interdiction and prosecution efforts to deter digital crimes."

"IRS-CI is increasingly dedicating more investigative time and agent expertise to tackle darknet and cryptocurrency crimes," added Albert Childress, Special Agent in Charge of the IRS Phoenix Field Office. "Our agents excel in addressing sophisticated cyber-related schemes and are up to the challenge of locating and apprehending criminals who try to hide in the digital world."

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Credit: Justin Paget/Getty Images

Per the IRS, the DNMDCC Task Force will specifically "serve the needs of all the communities within the District of Arizona."

The official mission of the DNMDCC Task Force is to:

“ disrupt and dismantle criminal organizations that are exploiting the appearance of anonymity on the darknet or using digital currency to facilitate criminal activities, such as drug trafficking, money laundering, theft of PII, and child exploitation. The goal of the DNMDCC will be to provide increased collaboration, enhance resources, and disrupt and dismantle criminal organizations that are using these new and emerging technologies. ”

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At this time, it has not been confirmed if additional task forces will be created in other U.S. states. 

What do you think about the creation of the DNMDCC Task Force in Arizona?

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Feature Image Credit: Andriy Onufriyenko/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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