Cyberctiminals, scammers and and other bad actors like North Korea are using decentralized finance (DeFi) to launder their illicit proceeds, the US Department of the Treasury said in its first DeFi Illicit Finance Risk Assessment report on Thursday
WASHINGTON (Pakistan Point News / Sputnik - 06th April, 2023) Cyberctiminals, scammers and and other bad actors like North Korea are using decentralized finance (DeFi) to launder their illicit proceeds, the US Department of the Treasury said in its first DeFi Illicit Finance Risk Assessment report on Thursday.
"Actors like the Democratic People's Republic of Korea (DPRK), cybercriminals, ransomware attackers, thieves, and scammers are using DeFi services to transfer and launder their illicit proceeds," the report said.
The reason the bad actors are able to transfer and launder money is because they exploit the system's existing vulnerabilities, the report said.
Another reason is that a large number of DeFi services are not fulfilling their obligations against money laundering and countering the financing of terrorism, which represents a major threat, the report said.
Treasury Undersecretary for Terrorism and Financial Intelligence Brian Nelson has urged private companies to address these key issues, the report said.
"Capturing the potential benefits associated with DeFi services requires addressing these risks. The private sector should use the findings of this assessment to inform their own risk mitigation strategies and to take clear steps... to prevent illicit actors from abusing DeFi services," the report said.
The US government must strengthen anti-money laundering regulatory supervision and consider additional guidance for the private sector, the report added.
