In recent years, crime and cryptocurrencies have become inexorably intertwined. Cryptocrime is on the rise as the popularity and use cases of cryptocurrencies expand, putting traders and businesses alike at risk.
Trend Micro claims that even though the value of cryptocurrency transactions received by illegal addresses has decreased to an estimated $24.2 billion, this number will further increase as more suspicious addresses come to light.
Cryptocrime is so pervasive that the United States has been asked to create a task force to combat cryptocrime and work with other agencies as needed. And that's exactly what the United States did when it announced a partnership with Nigeria in an effort to promote digital technology while addressing the threat of cybercrime and digital harm.
Image: The Cyber Express
US partners with Nigeria to fight crypto-related crime
According to a press release shared by the U.S. embassy and consulate in Nigeria, the U.S. government has established a bilateral liaison group. The group aims to address the growing problem related to cryptocurrency-related crimes. The United States also sees this new group as proof of the partnership between the two countries.
As part of the new partnership, the two countries will work together and share information to help law enforcement track and prosecute criminals. Specifically, the group will focus on criminals involved in cryptocurrency-related crimes and identify new strategies in the process.
BTCUSD trading at $67,120 on the daily chart: TradingView.com
Partnership to improve Nigeria’s campaign against cryptocurrency crime
Experts say US support will benefit Nigeria's campaign against crypto crime. The press release stated that continued support from the United States has enabled the Nigerian government to investigate and track down criminals. This latest partnership was announced just hours after the Nigerian government released Binance executive Tigran Gambriam.
Source: Chainalysis
Support from the U.S. Department of Justice complements Nigeria's diverse crypto industry. Despite the government's clear anti-crypto stance, the local cryptocurrency industry continues to grow. According to recent data from Chainalysis, the country ranks second after India in cryptocurrency adoption. Separate industry data also shows that Nigeria is embracing stablecoins.
US continues to provide support as cryptocurrency crimes increase
The partnership between the US and Nigerian authorities highlights the growing role of the US in the crypto industry. Cryptocurrency-related crimes are on the rise in the United States, with individuals, companies, and even nations continuing to be targeted. According to an FBI report, nearly 90% of reported investment fraud in 2023 was related to cryptocurrencies, with losses amounting to $396 million.
Even more concerning is the fact that crypto crimes are victimizing the US government. More than $20 million worth of tokens were stolen from a U.S. government cryptocurrency wallet that was hacked last Friday, according to a recent analysis. Interestingly, the hackers returned $19.3 million of this amount.
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