Senate to Investigate Crypto’s Role in Cybercrime

The Senate Homeland Security and Governmental Affairs Committee is adding another front in lawmakers’ crypto probe.

AccessTimeIconJul 20, 2021 at 7:38 p.m. UTC
Updated Aug 21, 2021 at 6:42 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The U.S. Senate is set to investigate crypto’s use in ransomware on multiple fronts as regulators globally continue to scrutinize digital assets.

On Tuesday, Sen. Gary Peters (D-Mich.), chair of the Senate Homeland Security and Governmental Affairs Committee, said he would investigate how “cryptocurrency can embolden cybercriminals” and what the federal government can do to fight back.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Coming less than a week after the Senate Judiciary Committee said it would hold its own ransomware hearing, the dual probes speak to the heightened attention crypto is facing from U.S. lawmakers.

    Peters’ probe is notable because of its focus on cryptocurrency, instead of ransomware more generally. Lawmakers seldom train their investigative sights on crypto specifically. But the recent tsunami of ransomware attacks against everything from pipelines to meatpackers has changed that.

    Attacks were up 150% in 2020 with $412 million in ransoms paid, Peters said, adding that an ongoing July attack is holding 200 corporate networks hostage for $70 million.

    “The increased use of cryptocurrencies as the preferred method of payment in ransomware attacks shows that cybercriminals believe they can commit attacks without being held accountable,” Peters said in a statement.

    Even so, Peters’ investigation appears to be leaving room for a different crypto narrative.

    The investigation will examine current oversight efforts and regulations related to virtual currencies. It will also make recommendations into how lawmakers and federal agencies can ensure all Americans can safely benefit from access to cryptocurrencies, and that they are not providing an incentive for criminal organizations and foreign adversaries to continue assaulting American networks and communities nationally.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about