Manhattan DA Calls for New Crimes Against Unlicensed Crypto Platforms

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A senior New York prosecutor is urging a legislative crackdown on digital asset crime, contending that gaps in regulation permit billions in illegal proceeds to pass through unlicensed crypto services with minimal risk of penalty.

Speaking at New York Law School on Wednesday, Manhattan District Attorney Alvin Bragg lobbied state lawmakers to establish criminal penalties for operating without a license. He described a “$51 billion criminal economy” that capitalizes on weak supervision to clean money from drug trafficking, firearms, fraud, and terrorist financing.

For his office, Bragg said, closing these regulatory loopholes has risen to the level of a core focus. He grouped this effort with other major enforcement priorities like combating gun violence and organized retail theft.

A particular target of Bragg’s criticism was unlicensed crypto kiosks and ATMs. He alleged these machines often charge exorbitant fees, sometimes reaching twenty percent, to turn cash into cryptocurrencies while asking few questions about the source of the money.

The prosecutor argued these kiosks have become a tool of choice for criminal actors. They provide a pathway to move illicit proceeds into digital assets like Bitcoin or Ethereum while avoiding the scrutiny of traditional, regulated banks in the US.