Remy is joined by Ari Redbord, the Global Head of Policy at TRM Labs, to provide insights into the scale of the problem. Ari reveals that approximately $53 billion in scams and fraud have been reported within the crypto ecosystem since 2023, with the actual figure likely much higher due to underreporting, as only about 15% of victims report their experiences.
Ari emphasizes a significant shift in the U.S. government’s approach to these scams, highlighting that they are now being treated as national security threats rather than just law enforcement issues. He discusses the recent actions taken by the Department of Justice, including a historic $14 billion forfeiture against the Prince Group, a Cambodian organization involved in these scams. This case serves as a prime example of the collaborative efforts between various government agencies, including the Department of Justice and the U.S. Treasury, as well as international partners like the UK, to combat this issue.
Remy and Ari also explore the challenges of coordinating efforts among different agencies and the necessity of engaging countries where these scams are prevalent, such as Cambodia, Laos, Myanmar, and China. Ari points out that while the U.S. is making significant strides, the complicity of local governments in these regions poses a substantial obstacle to effective enforcement.
As the holiday season approaches—a time when scams are particularly rampant—Remy inquires about the speed at which the strike force can freeze crypto funds once a scam is identified. Ari explains the rapid movement of cryptocurrency and the need for law enforcement and blockchain analytics companies to keep pace with scammers. He introduces the Beacon Network, a public-private initiative designed to disrupt these scams by enabling faster action against fraudulent transactions.