DOJ’s new enforcement team may intensify push to recover cyberattack payments

November 2021 employment law letter

Authors:

Michael L. Yaeger, Joseph W. Swanson, and Erin J. Hoyle, Carlton Fields

The U.S. Department of Justice (DOJ) recently announced the launch of a National Cryptocurrency Enforcement Team (NCET) to (1) add structure to and coordinate the agency’s investigative capabilities concerning unlawful uses of cryptocurrency, (2) increase prosecutions, and (3) recover illicit proceeds. The last piece is especially striking because it may provide a positive incentive for employers and other cyberattack victims to contact law enforcement and do so quickly. The DOJ stated one NCET focus will be to “assist in tracing and recovery of assets lost to fraud and extortion, including cryptocurrency payments to ransomware groups.”

Enormous costs

Cyberattacks using ransomware have caused serious and increasing problems in recent years. The victims have included educational institutions, utilities, hospitals, and other critical infrastructure providers:

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