Deputy Attorney General Lisa Monaco on Wednesday announced new initiatives at the Aspen Cyber Summit related to cryptocurrency and government contractor data breaches.
The Justice Department’s (DOJ) cryptocurrency initiative establishes the National Cryptocurrency Enforcement Team, which includes a mixture of anti-money laundering and cybersecurity specialists. Monaco cited the need to protect consumers using decentralized systems and cryptocurrency’s role in facilitating ransomware attacks as impetus for the new program. Money laundering and unregistered money services companies will also be targeted by the new enforcement team. The program will be housed within the DOJ’s Criminal Division.
This new program supplements regulatory and enforcement programs undertaken by other federal agencies, including the Security and Exchange Commission and the Treasury Department. However, regulating the cryptocurrency industry poses several challenges as noted earlier this year by JURIST commentator Matt Belenky.
The new government contractor cybersecurity program, called the Civil Cyber-Fraud Initiative, will use civil enforcement tools to ensure that companies that receive federal funds maintain systems with adequate security standards. Monaco cited contractor tendency to reveal data breaches after the fact as reason for the new program. Contractors that cover up data breaches will be pursued civilly by the new cybersecurity program. The program will investigate contractors under the False Claims Act.