President Trump Unleashes Task Force Targeting Crypto-Fueled Fraud

As a businessman, Donald  Trump has been curiously mum on the topic of cryptocurrencies — until now. The U.S. president has signed an executive order to activate a task force whose mission is protecting consumers against fraud in the cryptocurrency space, according to Bloomberg. It’s a sign that the U.S. government is throwing more resources at this nascent market even as any formal regulatory policy remains elusive.

Regulation is expected to be among the catalysts for a turnaround in the bitcoin price, but so far all U.S. agencies have been able to do is create peripheral groups to target scams.

At the helm of the new security unit, which was unveiled on Wednesday, is the U.S. Department of Justice. In addition, the task force is comprised of regulators from the U.S. Securities and Exchange Commission, which has its own digital currency task force, as well as officials from the Federal Trade Commission and the Consumer Financial Protection Bureau.

The Trump administration is lumping crypto-fueled fraud with that of other white collar crimes such as money laundering and Ponzi schemes, for instance, with a particular focus on protecting the elderly and veterans from these nefarious activities. It’s Trump’s stamp on an Obama-era security unit that was formed in response to the Great Recession. By signing an executive order, President Trump can control the focus and direction of the group’s activities, which now includes bitcoin.

On the Radar

It’s not as though crypto fraud isn’t already on the radar of government officials. In recent days, the U.S. DOJ announced the sentencing of a “so-called Bitcoin Maven” who was charged with running an unlicensed crypto-to-fiat transfer operation and laundering bitcoin that was obtained from narcotic-fueled transactions.

Theresa Lynn Tetley of Southern California, a former real estate investor, was sentenced to more than a year in federal prison in addition to fines and forfeiting 40 bitcoin, hundreds of thousands of dollars in cash and gold bullions, all of which she obtained illegally.

Tetley advertised on LocalBitcoins.com, which is a platform for buying and selling bitcoin locally. Meanwhile, Facebook in recent weeks eased its ban on select cryptocurrency projects and many in the cryptocurrency community are wondering if Twitter will follow in its footsteps, especially after Justin Sun, founder of the Tron Foundation, tweeted about having received a visit from Twitter at the Tron offices.

President Trump is a Wall Street guy, with the Trump Building perched prominently on 40 Wall Street, a stone’s throw from the New York Stock Exchange. He made his fortunes in real estate, which incidentally is an industry that has begun to support bitcoin for payments.

Featured image courtesy of Shutterstock.

Author:
Gerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. She owns some BTC and ETH.