

In 2022, several notable federal indictments, sentences, and seizures related to cryptocurrency were made public in the United States. To understand the extent and nature of government activity in Web3, CertiK has conducted research and analysis on the state of federal and regulatory crypto investigations in 2022. The investigation of civil and criminal suits relating to cryptocurrency are an important part of CertiK's mission to secure the Web3 world.

Analysis of Investigations in 2022
CertiK compiled all publicly available data on crypto investigations from various law enforcement and regulatory agencies for 2022. It is worth noting that the scope of the data collected is limited to investigations that have been publicly disclosed, as many investigations remain sealed and are not announced.
According to our data, there have been a total of 96 publicly disclosed crypto-related investigations in 2022. The Federal Bureau of Investigation (FBI) was responsible for the largest share of these cases, with 42 investigations representing 43.3% of the total. The United States Secret Service (USSS) was the second-highest contributor, with 20 cases, or 20.6% of the total. It is worth noting that the data may include some cases that involved interagency collaboration. The chart below provides a breakdown of the number of investigations per agency in 2022.

The disclosed status and outcome of crypto-related investigations varied among the different law enforcement and regulatory agencies. Most investigations resulted in charges and indictments, and some law enforcement agencies also announced seizures and sentences for their investigations. The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which are regulatory agencies, only announced charges and indictments, as they handle civil charges that do not follow the same legal process as law enforcement agencies.
The high number of charges and indictments in 2022 suggests that we may see sentences issued in 2023 for defendants who have pleaded or are found guilty in these cases. It is important to note that the legal process can be complex and that the outcome of an investigation may not always be immediately known. By staying informed about the latest developments in crypto-related government investigations, we can gain a better understanding of the state of Web3 and the efforts being made to combat illicit activity in the space.

An Upward Trend
The data compiled by CertiK shows a significant increase in the number of crypto investigations conducted and publicly disclosed by U.S. federal law enforcement and regulatory agencies from 2021 to 2022. Specifically, there was a 81% increase in the total number of investigations, with 53 publicly released cases in 2021 compared to 96 cases in 2022. This trend is important to note, as it suggests that efforts to combat illicit activity in the Web3 space are increasing. It is likely that this upward trend will continue in the coming years, given the ramp-up of law enforcement and regulatory efforts in this area.

The increase in crypto investigations is significant for a number of reasons. One contributing factor is the increased efforts and funding by law enforcement agencies toward the formation and support of cryptocurrency task forces. For example, the FBI launched its crypto task force in February 2022, and the number of disclosed cases doubled from 20 in 2021 to 40 in 2022. Similarly, the USSS launched a cryptocurrency awareness hub in February 2022, and the number of disclosed cases also doubled from 9 in 2021 to 20 in 2022.
Features of U.S. Federal Law Enforcement And Regulatory Agency Investigations
To fully comprehend the scope of crypto-related cases in the United States, it is crucial to understand the roles and responsibilities of different federal law enforcement and regulatory agencies. These agencies have different jurisdictions and capabilities, and their investigations may be conducted in different ways. By gaining a deeper understanding of these factors, we can better comprehend the overall state of crypto investigations in the U.S.
Agency Typology and Jurisdiction
It is worth noting that, in addition to federal agencies, there are also state and local law enforcement agencies that are also be involved in crypto-related investigations.
In the U.S., there are five main federal agencies responsible for investigating crypto-related crimes: the Federal Bureau of Investigation (FBI), the Commodities Futures Trading Commission (CFTC), the Internal Revenue Service Criminal Investigation Unit (IRS-CI), the United States Secret Service (USSS), and the Securities and Exchange Commission (SEC). Each of these agencies has specific duties and responsibilities when it comes to crypto investigations, and the complex nature of government jurisdiction can make it difficult to fully understand the scope of these investigations.

Law Enforcement Agencies Vs. Regulatory Agencies
The FBI, USSS, and IRS-CI have criminal law enforcement capabilities and work closely with Assistant United States Attorneys (AUSAs) from the DOJ to prosecute and manage legal proceedings, including the processing of warrants and indictments. These investigations can result in criminal offenses, such as prison time, seizures, and other judicial actions.
On the other hand, the CFTC and SEC have regulatory and oversight responsibilities, rather than criminal law enforcement powers. They are responsible for enforcing rules and regulations related to the commodities and securities markets, respectively, and can take civil enforcement actions against individuals or companies that violate these rules. It is important to understand the differences between these agencies to properly evaluate crypto-related investigations. The distinction between department agencies with criminal law enforcement powers and regulatory agencies with oversight responsibilities can lead to significantly different legal proceedings and management. By understanding these differences, we can better understand the scope and nature of crypto-related investigations in the U.S.
Length of Investigations
Law enforcement and regulatory investigations can be lengthy and may take years before any charges are made. This means that it is possible for investigations that come to light in one year to relate to events that took place in previous years. As a result, announcements of crypto-related charges can be made for cases in 2022 well into 2023, and beyond.
This feature of law enforcement investigations is exemplified in many crypto-related cases that were announced in 2022. For example, on December 7, 2022, the Department of Justice U.S. Attorney's Office for the Southern District of New York announced the unsealing of an indictment charging Rikesh Thapa with operating a scheme to defraud a start-up technology company of over $1 million worth of U.S. currency, cryptocurrency, and utility tokens. According to the charges, Thapa allegedly carried out the scheme while serving as the CTO of the company between December 2017 and September 2019.
Similarly, the conviction of Randall Crater, founder of My Big Coin Pay Inc., for defrauding investors through the marketing and sale of fraudulent virtual currency between 2014 and 2017 is another example of a case that was announced in 2022 but related to events from several years prior.
It is worth noting that these examples are not exhaustive and that there may be other cases that have not been publicly disclosed. As we move into 2023, it is important to expect that we may see announcements of cases from 2022 and earlier, as the length of time that has passed since an event occurred is not necessarily an indicator of whether or not an investigation or potential charges will take place.
Legal Proceedings
It is important to note that not all cases pursued by the federal government that result in a formal complaint, indictment, sentence, or seizure are released to the public. Indictments can be sealed by courts or not formally announced through press releases, and investigators or prosecutors may choose not to publicly disclose certain cases for various reasons. This means that it can be challenging to fully understand the scope of crypto investigations in 2022, as we can only analyze the cases that have been made publicly available.
However, despite these limitations, there were many notable cases disclosed by U.S. law enforcement and regulatory agencies in 2022 that are worth examining and reflecting on as we move forward into 2023. These cases provide valuable insights into the state of crypto investigations in the U.S. and can help inform future developments in this area
Looking Ahead
Based on this analysis, it is clear that there has been an upward trend in the number of crypto investigations conducted and publicly disclosed by U.S. federal law enforcement and regulatory agencies. As we move into 2023 and beyond, it is important to stay informed about the changes within the government related to the Web3 space, as these changes will have significant impacts on the ecosystem and understanding of the scope of cryptocurrency. Based on current trends, it is likely that investigations will continue to increase in the coming years.
At CertiK, our goal is to secure the Web3 world through ongoing efforts to provide the highest level of security and due diligence in the space. Understanding these trends helps us better understand the need for more security in Web3. To stay up to date on relevant crypto investigations in the United States, be sure to follow @CertiKAlert on Twitter for real-time alerts on a wide range of hacks, scams, and law enforcement announcements.
Note: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
*This article is a press release. Original source here. *
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Related News

'Floktober' marks the beginning of the year's final quarter, and FLOKI's community may be expecting some significant announcements to emerge...
Unlocking the Exciting Potential of October for Floki
Certain moments stand out as pivotal junctures in the world of cryptocurrencies. For the Floki community, one such moment is the arrival of October, affectionately dubbed "Floktober." It is a name born from the collective enthusiasm of Floki's community.
This is the start of the year's final quarter, and some significant Floki-themed announcements may be on the horizon.
A Glimpse into Floki's Roadmap
Behind this excitement lies a compelling reason: many major milestones on Floki's roadmap are nearing fruition.
#FLOKI 2023 ROADMAP UPDATE
— FLOKI (@RealFlokiInu) June 22, 2023
We are VERY CLOSE to delivering on several key promises on the $FLOKI 2023 roadmap, so we believe an update is long overdue to show where we are at.
Here is a quick overview of some of the exciting things our devs are working on behind the scenes that… pic.twitter.com/EjGj284jCk
These impending developments encompass a spectrum of significant initiatives, including staking, a noteworthy upgrade for the FlokiFi Locker, introducing a mysterious protocol named Project TL, and the eagerly awaited mainnet launch of Valhalla, Floki's groundbreaking metaverse game.
FLOKTOBER! ⏳⏰🔥
— B (Da Viking) (@100bviking) September 22, 2023
"B," a prominent member of Floki's core team, has provided insights into the heightened anticipation within the community.
“October has historically been a good month for crypto. Even more so for Floki! So much so that our community has named the month of October "Floktober". This is generally used to refer to the good vibes and positive news that tend to come in for Floki in the month of October,” 'B', a core team member at Floki, told BSC News. “I don't think this October will be different. Our team has been working extra hard for a long time now, and I believe starting in October and leading to the end of the year, we can finally start showing what we've been working on!”
Lets delve into the updates that may soon emerge:
FlokiFi Locker: A Key Upgrade on the Horizon
FlokiFi Locker, the digital asset locker protocol introduced by the Floki team, is set to undergo a significant upgrade. This versatile platform allows users to securely lock various assets, including Liquidity Pool (LP) tokens, fungible tokens, NFTs, and multi tokens, reducing the the risk of a rug.
Currently, FlokiFi boasts an impressive $8.77 million worth of assets locked, accompanied by 72 NFTs. Prominent projects like ApeSwap, Biswap, and Chainlink have already chosen to collaborate with Floki for FlokiFi Locker. The community might anticipate a crucial upgrade announcement in the fourth quarter of this year.
Project TL: A Mystery Waiting to Unfold
Another development ostensibly on the horizon is the unveiling of Project TL. At this point, the details surrounding Project TL remain hidden in mystery, leaving the community in eager anticipation. Followers hope for more information to emerge as the days unfold, shedding light on this unknown project's purpose and potential impact.
Valhalla Metaverse Game Release: A Gaming Revolution
In gaming, Floki's Valhalla metaverse game is generating considerable excitement. Set to be released in Q4 2023, Valhalla represents a play-to-earn NFT gaming metaverse, combining blockchain technology and immersive gaming experiences.
Valhalla rewards players not only with $FLOKI for their in-game battles but also with complete ownership of in-game assets, which they can freely trade on platforms like FlokiPlaces. This metaverse game, powered by the FLOKI token, reportedly incorporates A-level game mechanics on the blockchain. This includes on-chain gaming interactions and upgradeable NFTs.
As Floktober approaches, the Floki community eagerly awaits these upcoming events, each carrying the potential to shape the future of Floki.
Floktober's Potential
Floki has sought to turn "Floktober" into a beacon of innovation and anticipation each year. Over recent times, the organization has utilized October as a canvas for its marketing endeavors, calling it "Floktober."
One of the boldest strokes in Floki's marketing palette was witnessed in October 2021. The cryptocurrency embarked on an audacious journey, commandeering 300 iconic London red city buses and adorning The Tube Underground with its branding for the entire month.
With this, Floki harbors a vision of broader mainstream exposure, with the ultimate goal of being embraced by a more extensive and diverse user base.
A Macro Support Zone: Insights from Crypto Tony
Crypto analyst Crypto Tony provides valuable perspective on Floki's current positioning. With an observation that "FLOKI is sat on a macro support zone," there is a sense of stability and resilience underpinning the cryptocurrency.
$FLOKI / @RealFlokiInu - Update #Flokitober is around the corner, and with $DOGE looking hot for a pump, well i expect some magic from the leaders
— Crypto Tony (@CryptoTony__) September 27, 2023
Also note that #FLOKI is sat on a macro support zone. Accumulation time legends pic.twitter.com/XVNrkXoIo1
As we venture deeper into Floktober, the Floki community remains poised for what promises to be an exciting chapter in the cryptocurrency's narrative.
Floki's ability to transform October into a month of celebration, innovation, and strategic advancement is characteristic of its so far dynamic approach to the world of cryptocurrency. With each passing Floktober, the Floki community and its supporters eagerly anticipate the revelations and developments that will shape the Floki ecosystem.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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