Case Assistance for Law Enforcement

By CNC Intelligence, which provides Case Assistance for Law Enforcement services. Learn more.

Digital assets and cryptocurrencies are realities everyone is slowly but surely accepting, including tax authorities and law enforcement agencies. That said, local law enforcement is still far from being able to deal with cybercrime involving cryptocurrencies.

On a national level, awareness about crypto crime is growing slowly but surely. There are now law enforcement agencies that can track stolen digital assets and recover them. The most effective such agencies cooperate with private sector organizations to enhance their capabilities and plug the gaps in their understanding of digital assets.

On a local level, the situation is worse. People who fall victim to crypto crime can’t turn to local police to report their losses and start investigations. Or they can, but the police are hardly up to the task.

Some of those who report digital asset theft to the police find themselves having to explain the crime using loose-fitting analogies and other linguistic artifices to ensure that the enforcers of the law understand what transpired.

The crypto industry may have gone mainstream, but few people understand it. And the lack of response from law enforcement has had negative effects on the ongoing crypto crime wave.

On the one hand, theft victims often avoid reporting crime, as they know the police can’t help them. Some may be radical libertarians who do not want to involve the authorities. Others have had previous experiences that highlighted the incompetence and inability of the authorities to deal with crypto crime.

On the other hand, criminals who are in the business of relieving people from their virtual coins and precious NFTs, feel emboldened. With the authorities proving to be unequal to the task of chasing them down, they know they can cook up new schemes and continue their old ones with impunity.

Some have even infiltrated the industry segment that is currently crypto crime victims’ best bet and last recourse: the crypto tracing and recovery industry. Scammers offer to trace and recover stolen digital assets, only to steal more money from crime victims willing to pay to have their assets recovered.

Crypto Platforms Grab at Straws in the Face of Mounting Crypto Crime

As crypto crime booms, some crypto platforms have realized they have no choice but to throw themselves at the mercy of traditional law enforcement.

Last year, OpenSea, an NFT minting and trading platform, instituted a new policy regarding NFT fraud reports. Previously, the platform only required police reports for “escalated” theft cases. Now, it wants alleged theft victims to submit a police report to the platform within seven days of reporting the theft.

Those who fail to produce the report will see their stolen assets unfrozen after seven days, leaving the potential criminals free to transfer them as they want.

The new policy cuts back on false reports. At the same time, however, it tosses crypto crime into the laps of legacy law enforcement without the capabilities to deal with the task.

Some suspect that OpenSea has only implemented this policy to add another layer of bureaucracy to its reporting, thus discouraging dishonest reports.

Authorities are Embracing Private-sector Expertise and Experience

Federal-level authorities have caught up with crypto crime expertise-wise. And they have accomplished the feat by co-opting the skills and expertise of private sector companies.

The FBI has a dedicated crypto-focused task force, complete with the online reporting tools necessary for smooth operation. Most crypto crime isn’t large enough in scope, however, to warrant the attention of federal-level law enforcement.

If you lose your $300 NFT to crypto crime, you’ll have to turn to local police. And your problems may start right away, as you probably won’t find an online reporting tool you can use. If you want to file a report, you will have to do it the old-fashioned way.

Submitting a report in person can be problematic, as you will have to convince a person that your story about a $300 digital picture of a cartoon ape deserves the attention of the police.

The key is to normalize crypto crime as normal crime, educate local legacy law enforcement agencies and assist them on a case-by-case basis if needed.

CNC Intelligence Inc. Works with Law Enforcement

CNC Intelligence Inc. specializes in global digital asset recovery. What does this mean?

• The company can reliably trace and untangle crypto transactions, identifying thieves regardless of where they may reside or hide.
• CNC Intelligence Inc. has the personnel to effectively liaise with local and national law enforcement around the world to facilitate the recovery of digital assets.
• The company has the legal expertise and means to pursue crypto crime through courts.
• Company experts can educate and train local law enforcement personnel on crypto crime, its implications, and ways to combat it.
• CNC Intelligence Inc. experts can provide case-by-case assistance to law enforcement agents.

Assisting the Authorities with Specific Cases of Crypto Crime

Educating local law enforcement agents on crypto crime is an effort with a broad scope, lacking specifics. Once they know how to identify and pursue crypto crime, agents can turn to CNC Intelligence for help on specific cases. The company can trace assets and share information with the police about the results of its investigations.

CNC Intelligence Inc. is in touch with many law enforcement agencies on every level, from local to federal. It can put its clients in touch with the relevant federal agencies that may conduct tracing operations of their own. And that includes local law enforcement.

Facilitating the recovery of stolen digital assets is the top priority of the company. And it acts accordingly. CNC Intelligence Inc. has already helped law enforcement agencies recover digital assets internationally. In addition to helping with the tracing, the organization can also help police request and subpoena suspect information to aid investigations.

The Revolving Door Phenomenon of the Private Sector-Federal Agencies Relationship

Private sector expertise can help federal agencies fight crypto crime. At the same time, federal agencies can provide talent to the private sector that can help recovery companies extend their reach and boost their efficiency.

CNC Intelligence Inc. employs several experts who used to work for federal law enforcement agencies. The company makes great use of its skills in legacy law enforcement, rounding out its technical capabilities with much-needed legacy skills and abilities.