The new proposal may facilitate coordinated actions among the U.S. Treasury, Financial Crimes Enforcement Network (FinCEN), the U.S. Secret Service, and law enforcement to apprehend fraudsters and scammers in the crypto space.
Article author: Brayden Lindrea
Source: Cointelegraph
Article translated by: Chang
Two U.S. Senators have proposed legislation aimed at combating crypto fraud and scams by equipping law enforcement with better tools to identify attacks and lock down perpetrators.
The “Strengthening Institutional Framework to Enforce Cryptocurrency Act” (SAFE) bill introduced by Democrats Elissa Slotkin and Republican Jerry Moran on Monday aims to coordinate actions among the U.S. Treasury, law enforcement agencies, regulators, and private sector participants to combat crypto fraud and scams.
Slotkin stated: “This task force established by the SAFE Crypto Act will allow us to mobilize every resource we have to combat fraud in digital assets.”
Moran added: “As cryptocurrency becomes more widely used, this legislation will help address threats and ensure that all Americans are better protected from cryptocurrency scams.”
According to an FBI report, in 2024, Americans lost $9.3 billion to crypto-related investment scams, a 66% increase from 2023. The 60 and over population was the most affected, with losses reaching $2.84 billion.
It is important to note that the data includes any investment fraud that mentions cryptocurrency as a lure, many of which do not involve blockchain or cryptocurrency.
Despite efforts by both the public and private sectors to raise awareness, crypto scammers continue to steal funds from investors through increasingly sophisticated methods.
However, Gabriel Shapiro, the General Counsel of Delphi Labs, pointed out that if the SAFE Crypto Act is successfully implemented, it could send shockwaves of panic through crypto scammers and fraudsters.
“If the pressure is significant, the scammers are likely to be scared stiff,” Shapiro said, in a post he shared on X on Tuesday, noting that those involved in the pursuit of crypto criminals will include top officials such as the Attorney General, the head of the Financial Crimes Enforcement Network, and the Director of the U.S. Secret Service.
Shapiro stated that the SAFE Cryptocurrency Act could be very useful, as U.S. securities and commodities regulators are currently not paying enough attention to enforcement actions against hackers, scammers, and Ponzi schemes.
Private companies like TRM Labs are willing to offer assistance
Blockchain forensics company TRM Labs is one of the private sector entities willing to assist U.S. officials, with its Vice President and Global Policy Lead Ari Redbord stating that collaboration will help in real-time tracking and dismantling of illegal networks:
“By bringing together industry and law enforcement, we can effectively reduce the ability of criminals to exploit transformative technologies to cause harm.”