The US Secret Service owns cryptocurrency, has its own NFT collection, and has complimented blockchain technology’s ability to combat financial crime, according to Reddit users during a recent ask-me-anything (AMA).
On May 15, representatives from the US Secret Service San Francisco Field Office and the Bay Area Regional Enforcement Allied Computer Team (REACT) answered questions from members of the r/cryptocurrency forum.
While some regulators still regard cryptocurrency as a tool for fraudsters and scammers, the REACT task group praised blockchains’ open and transparent nature as an “amazing opportunity” for law enforcement to follow the flow of money.
The Secret Service has previously stated that the immutable nature of the blockchain ledger allows for more readily monitored and tracked criminal financial activity than money in some situations.
An upcoming Netflix Bitfinex tale starring some unusual villains clarifies this point: it’s difficult to launder money using blockchain. In response to a follow-up inquiry regarding how to best hide unethical behavior on the blockchain, the Secret Service stated that if people want to do nefarious things financially, they should do them in cash rather than crypto.
Another Redditor inquired about the Secret Service’s cryptocurrency holdings, to which the authority replied that they were “definitely holders of crypto” and defined themselves as crypto “enthusiasts” in the following comments. According to the agency, owning cryptocurrency allows them to better comprehend the crypto world’s underlying mechanics.
“Almost all cases necessitate some level of ELI5’ing.” “It’s a running gag around here,” the agency added, with the acronym “ELI5” referring to the popular Reddit community r/explainlikeimfive.
When asked if there are any notable differences between crypto crimes and criminal behavior in traditional banking, the Secret Service stated that the “vast majority” of calls and reports received by their office include crypto somehow.
“They differ from fiat investigations in many ways, both good and bad, but the most notable difference is that crypto transactions are irreversible and immutable.” While the organizations answered various serious issues, there was also some lighthearted fun during the event. When a Redditor questioned if the Secret Service was thinking about developing its own “memecoin,” the agency answered by promoting its own NFT collection on OpenSea.