News
US Secret Service holds crypto, other questions answered in AMA session
An AMA session with the US Secret Service that took place on 15 May via the Reddit platform disclosed that the agency held onto cryptocurrencies to understand the functioning of the technology. The law enforcement agency also answered a few other crypto-related questions posed by individuals.
- The law enforcement agencies answered a series of crypto-related questions on Reddit
- The agencies stated that blockchain technology did help them fight crimes
The United States Secret Service’s San Fransico Field Office and the Bay Area Regional Enforcement Allied Computer Team (REACT) held an AMA session on Reddit on 15 May. While all the questions were not answered, some queries did receive the enforcement authorities’ attention.
On the one hand, the Secret Service’s crypto division was officially instated in March 2022. And there are currently a total of five agents working at the agency. The division was put in place as the enforcement agency is responsible for safeguarding the country’s financial infrastructure, alongside protecting leaders. REACT Task Force, on the other hand, focuses on investigating high-tech crimes.
Crypto holding insights by the Secret Service
One question directed at the Secret Service pertained to whether or not it holds cryptocurrencies. To this, the law enforcement agency gave an affirming reply, stating that they were “definitely holders of crypto”. This was so that the agency could understand the mechanism of a certain crypto or blockchain by making their own transactions. The Secret Service further stated,
“Pretty much most cases require a certain level of ELI5’ing. It’s somewhat of a running joke around here.”
Moreover, REACT Task Force also opined on the transaction traceability of cryptocurrencies. A user questioned, “Is the inherent traceability and pseudonymity of some cryptos seen as a pro to crime fighters.” This was taking the narrative of crypto enabling criminal activities into account. REACT Task Force stated that blockchain technology did, in fact, give them “an amazing opportunity” to money flow.
Meanwhile, in a different response, the Secret Service stated,
“The beauty of the blockchain helps us trace funds, but attributing wallets to individuals is a different story. It’s only anonymous until it’s not. But even then, in every instance we have applicable laws and we must follow judicial process when working to identify bad actors.”
The agency also stated that the best way to hide transactions from the agency was by making payments in cash. Speaking about its stance on privacy-enhancing cryptos like Monero [XMR]
, the San Fransico agency stated,“Our friends at the Department of Justice “consider[] the use of AECs [such as Monero] to be a high-risk activity that is indicative of possible criminal conduct.””
Importantly, a Reddit user asked the agencies if they had any additional information about Satoshi Nakamoto – the creator of Bitcoin [BTC]. The user also asked if an ongoing investigation sought the face behind the name. To this, the Secret Service promptly stated, “We may know Satoshi, but it is classified! s/.”
