Manhattan District Attorney Alvin Bragg has issued a forceful plea to state legislators, calling for immediate action to update and strengthen legal enforcement tools necessary to combat the escalating threat posed by cryptocurrency-related crime. The DA’s office highlighted that current state statutes are often insufficient to effectively prosecute complex digital asset schemes, ranging from sophisticated international money laundering operations to consumer fraud and decentralized finance (DeFi) scams.
In a recent policy white paper, the DA’s office detailed several critical legislative gaps. Chief among these is the lack of clear legal definitions for various digital instruments, which complicates asset forfeiture and seizure proceedings. The report notes that criminals exploit the speed and anonymity of blockchain technology, allowing illicit funds to be moved across jurisdictions instantaneously, often outpacing the capabilities of existing search warrants and subpoena processes.
Specific requests put forth by the DA include granting prosecutors enhanced authority to subpoena relevant data from crypto exchanges and digital wallets, modernizing the penal code to explicitly address new forms of financial misconduct involving virtual assets, and creating a faster, more agile legal mechanism for the preliminary freezing and seizing of ill-gotten cryptocurrency. The DA argues that without these crucial updates, New York risks becoming a safe haven for cyber criminals, undermining efforts to protect financial consumers and maintain the integrity of the state’s financial infrastructure. Lawmakers are currently reviewing the proposals ahead of the next legislative session.
Source: Manhattan DA Urges Lawmakers to Strengthen Crypto Enforcement Tools
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