U.S. Justice Dept launches new initiatives on cryptocurrencies, contractor hacks

By Christopher Bing and Sarah N. Lynch

WASHINGTON (Reuters) -U.S. Deputy Attorney General Lisa Monaco on Wednesday unveiled two new Justice Department enforcement initiatives aimed at targeting cryptocurrencies and government contractors who fail to report cyber breaches.

Monaco announced on Wednesday, during a virtual speech at the Aspen Cyber Summit, the launch of the National Cryptocurrency Enforcement Team, whose goal will be to “strengthen” the Justice Department’s ability to disable financial markets that allow cybercriminals to “flourish.”

The group will include a mix of anti-money laundering and cybersecurity experts.

“Cryptocurrency exchanges want to be the banks of the future, well we need to make sure that folks can have confidence when they’re using these systems and we need to be poised to root out abuse,” Monaco said. “The point is to protect consumers.”

Cybercriminals that attack U.S. companies with ransomware, a type of malware that encrypts systems and demands payment, are typically paid in cryptocurrency. The hackers often use a mix of different cryptocurrency services to accept and transfer these payments, helping hide them from law enforcement.

Monaco also announced the creation of a civil cyber fraud initiative, which will “use civil enforcement tools to pursue companies, those who are government contractors, who receive federal funds, when they fail to follow recommended cybersecurity standards.”

“For too long, companies have chosen silence under the mistaken belief that its less risky to hide a breach than to bring it forward and report it. That changes today,” Monaco said.

The announcements come after several high profile cyberattacks earlier this year against U.S. companies and government agencies.

Cybercriminals attacked a major U.S. pipeline operator, causing localized gas shortages along the U.S. East Coast in May. The incident led to new cybersecurity rules for pipeline owners in July.

(Reporting by Chris Bing; Writing by Sarah N. Lynch; Editing by Mark Porter, Kirsten Donovan)

U.S. Justice Department to launch new crackdown on firearms trafficking

By Sarah N. Lynch

WASHINGTON (Reuters) -The U.S. Justice Department this week is formally launching a new effort to crack down on firearms trafficking, in a strategy that involves the creation of five strike forces that will partner with local law enforcement to disrupt criminals selling guns used in crimes.

The strike forces, which were first announced in June, will be concentrated in “significant gun trafficking corridors” including New York City, Chicago, Los Angeles, San Francisco and Washington, D.C.

As part of the launch, Attorney General Merrick Garland and Deputy Attorney General Lisa Monaco will pay a visit to the Washington D.C.-based headquarters of the Alcohol, Tobacco, Firearms and Explosives (ATF) on Thursday, after which Garland will travel to Chicago to meet with federal and local law enforcement.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes,” Garland said in a statement.

Justice Department officials said in a call with reporters late on Wednesday that the plan entails a “long-term coordinated, multi-jurisdictional strategy” to disrupt trafficking patterns.

One department official said the new strategy differed from prior efforts to step up the prosecution of firearms offenses, noting it establishes “cross-jurisdictional coordination” between the areas that supply the illegal firearms and those where the guns are used to commit crimes.

“This new approach that links law enforcement and prosecutors and locations where violence is occurring with the law enforcement and prosecutors in the jurisdictions where the firearms originate broadens our focus to ensure a comprehensive and coordinated response in both of those areas,” the official added.

The Justice Department also said that federal law enforcement is stepping up efforts in other ways as well.

For instance, the U.S. Marshals Service recently conducted a sweep with state and local authorities to pick up fugitives wanted for state crimes such as murder, aggravated assault and rape.

Since May 31, more than 700 fugitives have been arrested, 361 of whom were wanted for murder, the official said.

(Reporting by Sarah N. Lynch; Editing by Peter Cooney and Steve Orlofsky)