For the first time, the FBI put together an elaborate sting operation overseeing the creation of a new digital token to aid in uncovering criminal activities in the cryptocurrency sector.
On October 14, 2024, former federal prosecutor - and now partner at Dorsey & Whitney in its Government Solutions & Investigations group, Seth Goertz, was interviewed on Bloomberg Law’s podcast hosted by June Grasso.
Seth kicked off the episode with June Grasso talking about the intricacies of the FBI sting operation and discussed how this will impact the crypto market moving forward.
“What the FBI did was quite clever while working with the SEC and other enforcement agencies - so from the outset it appeared to be a lucrative, novel, unique token that attracted a lot of interest from the market,” Seth says to June during the interview.
“The goal was obviously to see how cryptocurrency fraudsters were going to use and utilize the token. Since the token was portrayed under blockchain, every transaction that occurred for each one of these tokens could be tracked and followed and that allowed the FBI and law enforcement an incredible window into seeing how the coin was going to be manipulated."
Listen to the full interview between Seth Goertz and June Grasso on Bloomberg Law Podcast.