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Justice Department Press Releases
Assistant Attorney General Leslie R. Caldwell Delivers Remarks at the ABA's National Institute on Bitcoin and Other Digital Currencies
Washington, DC
United States
~ Friday, June 26, 2015
Thank you Nina [Marino] for that kind introduction.
It is a pleasure to address today's ABA National Institute on Bitcoin and Other Digital Currencies.As head of the Justice Department's Criminal Division, I am privileged to lead over 600 attorneys who investigate and prosecute federal crime, help develop criminal law and formulate law enforcement policy.Our talented prosecutors perform crucial work in many of the areas relevant to today's discussion, including the fight to combat money laundering, financial fraud, child exploitation and cybercrime.
This afternoon, I'd like to discuss the department's approach to the emerging virtual currency landscape, our ongoing efforts to prosecute those who commit crimes by using virtual currency, and our view that compliance and cooperation from exchanges, companies and other market actors can ensure that emerging technologies are not misused to fund and facilitate illicit activities.
The department is aware of the many legitimate actual and potential uses of virtual currency.It has the potential to promote a more efficient online marketplace.It also potentially can lower costs for brick and mortar businesses, by removing the need to pay credit card-related costs.And in theory, it can help speed and reduce the cost of cross-border transactions.But we also have seen that criminals have been among the first to enthusiastically embrace the use of virtual currency, primarily in crime involving the internet.
Many of the inherent features of virtual currencies are exactly what makes them attractive to criminals.Many criminals like virtual currency systems because these systems conduct transfers quickly, securely and with a perceived level of anonymity.For others, the irreversibility of payments made in virtual currency and lack of oversight by a central financial authority is appealing.Finally, the ability to conduct international peer-to-peer transactions that lack immediately available personally identifying information has made decentralized virtual currency attractive to those who wish to cover their money trail.
As a result, virtual currency facilitates a wide range of traditional criminal activities as well as sophisticated cybercrime schemes.
Much of the illicit conduct involving virtual currency occurs through online black markets such as the now-shuttered Silk Road, which operated...