Cryptocurrency theft resulting from criminal fraud and hacking would fall under the purview of a new U.S. interagency task force envisioned in a bipartisan bill introduced Thursday, backed by well-placed lawmakers in the U.S. House of Representatives.
The federal cryptocurrency theft task force would be led by the U.S. Attorney General, according to the text of the bill reviewed by CoinDesk, and would involve, among others, the Department of Justice, the Federal Bureau of Investigation, the Department of Homeland Security and the Department of the Treasury.
The legislation is sponsored by Rep. Lance Gooden, a Republican on the House Judiciary Committee, and a Democrat on the House Financial Services Committee, Rep. Josh Gottheimer.
“Cryptocurrency criminals are stealing billions from Americans and Washington lacks a coordinated strategy to stop them,” Gooden, a Texas Republican, said in a statement to CoinDesk. “As digital assets shape the future of finance, this bill protects consumers, cracks down on thieves, and builds trust in the crypto ecosystem.”
The task force would become the main point of coordination for preventing and investigating cryptocurrency theft, a problem plaguing the young industry. From fraud and so-called pig slaughter by complex criminal networks to state-backed hacker attacks, digital assets have long been a target. Many of the industry’s most vocal political opponents often cite this underlying pattern of criminal abuse as evidence that the industry poses risks to consumers.
Despite $11 billion in theft and scams last year, “victims have nowhere to turn,” argued Gottheimer, a New Jersey Democrat. This change would provide “a single federal point of contact.”
This legislative effort suggests that responses to theft cases have been inconsistent across jurisdictions, including federal agencies and state and local law enforcement.
“By housing a coordinating task force at the Department of Justice, this bill gives victims, investigators and local law enforcement the unified federal response they have been lacking, all on a voluntary basis that respects local control,” Dannis Porter, co-founder and CEO of the Satoshi Action Fund which advocates for digital asset policy, said in a statement.
Before the arrival of President Donald Trump’s pro-crypto administration, the DOJ had maintained its own national cryptocurrency enforcement team, but the agency quickly disbanded it under the new administration, with new leaders arguing that it regulated the industry through enforcement.
In 2021 – under the administration of President Joe Biden – the Joint Ransomware Task Force was created to coordinate federal agencies in a similar and related vein, as ransomware attacks are often associated with crypto payments.
And last year, the Treasury Department established a Scam Center Strike Force to work with other law enforcement agencies to combat overseas scams that seek to trick people into sending cryptocurrencies. The group, led by the U.S. Attorney for the District of Columbia, claims to have seized more than $700 million in cryptocurrencies through scams, often supported by Chinese organized crime groups through middlemen in Southeast Asia.
It’s not yet clear whether the task force’s new legislation will find a path to passage during the busy session of Congress. Bills must either find their way before a House committee or be attached to a compelling legislative package.
The Digital Chamber, a Washington group supporting crypto policy, said in a statement about the legislative effort that it is “critical that law enforcement agencies have the tools, training and coordination to investigate thefts, trace illicit activity, support victims and prosecute bad actors.”
