The military's innovation section is studying cryptocurrencies to assess their risks to national security and law enforcement.
DARPA, which invented the internet, hired crypto intelligence firm Inca Digital to conduct the year-long trial.
The business will develop tools to help the Pentagon understand crypto markets and combat illegal use of digital assets.
"The endeavor going here is mapping out the bitcoin ecosystem in some depth," CIA program manager Mark Flood told The Washington Post in an interview.
The government plans to use the data to study traditional financial markets, where exact data is harder to collect, as well as illicit money.
The deal shows that federal authorities are intensifying their fight against rogue governments, terrorists, and other criminals who use Bitcoin.
Last month, the Treasury Department imposed its first software code sanctions on Tornado Cash, a company that helped North Korean hackers launder money.
The agency requested public comments on cryptocurrency's national security and criminal finance risks this week. The Justice Department also formed a 150-prosecutor network to coordinate crypto-related investigations and prosecutions earlier this month.
Flood claimed that North Korean government-affiliated hackers stole billions for weapons development. Before the spring invasion, the Ukrainian authorities identified Russian financial sector attacks.
From Bitcoin to Stablecoin, cryptocurrency history is unstable.
"We just need to admit that the financial sector may become a component of modern warfare in the future," said Flood, a former Treasury official who studied systemic financial risk.
Governments struggle to control cryptocurrency. The business has become a shadow financial system that competent criminals can exploit due to lack of regulatory control.
Inca Digital CEO Adam Zarazinski called DARPA work "very diversified." The project aims to help the government understand how money flows into and out of blockchain systems, public ledgers on a distributed network of computers.
It also identifies crypto frauds and distinguishes bot-driven bitcoin trade.
"There's a lot of worry right now about crypto scams," Zarazinski, a former Air Force officer and Interpol criminal intelligence officer, said. "Well-organized, worldwide criminal networks, either expressly backed by opposing countries or given tacit consent to conduct these activities, and billions of dollars are taken from Americans and Europeans," he said.
The humiliated cryptocurrency pioneer denies fleeing. He's unaccounted for.
DARPA has tried blockchain before. The government commissioned cybersecurity firm Trail of Bits to report in June that blockchains often have security problems.
Flood said the bureau is not tracking specific bitcoin users. He said DARPA doesn't spy. "We're careful not to include personally identifying information in our studies."
Comments
Post a Comment