In 2023, US law enforcement agencies played a significant role in data requests, constituting almost 30% of the total requests made. This statistic sheds light on law enforcement’s substantial reliance on investigative and regulatory data.
Kraken, a prominent crypto exchange platform, has reported this notable trend, emphasizing the considerable involvement of law enforcement in seeking access to digital information. Law enforcement’s extensive use of data underscores the importance of transparency, privacy safeguards, and legal frameworks governing data access and usage in the digital age.
Kraken’s data goldmine by the US government
Kraken reported in a blog post that it received a total of 4,923 data requests in 2023, with the United States issuing the most at 1,393, which is comparable with figures from 2022. Among US agencies, the Federal Bureau of Investigation (FBI) was the most active, handling more than 33% of all requests.
According to Kraken, despite accounting for only 1.8% of total US agency requests, the US Securities and Exchange Commission handled approximately 60% of all regulatory agency requests in the country.
The exchange reported a 33% rise in total global law enforcement and regulatory agency requests in 2023 compared to 2022, with the British Virgin Islands and Australia witnessing the highest percentage increases, at 400% and 341%, respectively.
Kraken states “We offer a variety of crypto products and services to over nine million clients in 190 different countries. Last year, we received data requests from law enforcement and government agencies located in 69 countries.” Here’s the data:
Kraken, which serves over nine million customers across 190 countries, revealed that it received 4,923 data requests in 2023, a considerable increase from prior years. In a statement Kraken said:
We take our responsibility to comply with laws and regulations seriously while also prioritizing the protection of our clients’ privacy.
Kraken
The company also stated that it follows tight policies and procedures to ensure that data disclosures are compliant with applicable laws and regulations – “Many types of information requests are received, and Kraken has strict policies and procedures to comply with laws and regulations and protect client privacy while supplying data when we have a legal obligation to do so.”
Global crypto interest and regulation spikes
Additionally, the report emphasized a surge in requests from regulatory agencies and international law enforcement agencies in comparison to the preceding year. The surge of 70% in requests to global regulatory agencies signifies an increased level of scrutiny and supervision within the cryptocurrency industry.
Kraken disclosed that it provided information on a total of 6,110 accounts in response to data requests, which accounted for 51% of the inquiries it received. It is worth mentioning that a considerable proportion of these accounts were linked to individuals residing in Germany, the United States, and the United Kingdom.
Kraken further disclosed a surge in data requests originating from specific jurisdictions, including Australia and the British Virgin Islands, which witnessed respective growth rates of 400% and 341%.
Coinbase, an additional, prominent crypto exchange, disclosed that it received 13,079 requests from law enforcement agencies from October 2022 to September 2023, representing a 6% growth compared to the corresponding period in the previous year. Coinbase, on the other hand, stressed that the numbers it discloses do not necessarily indicate the quantity of queries completed.
Although the precise scope of the information disclosed by Coinbase to law enforcement is unknown, the exchange has declared its intention to provide “aggregated or anonymized data.” In the same vein, Kraken reaffirmed its dedication to providing data “to the extent that we are legally obligated to do so.”
TRM Labs, a blockchain forensics firm, published results in December 2023 indicating that more than sixty percent of crypto investigations surveyed by organizations resulted in favorable outcomes and that ninety-nine percent of those organizations sought additional crypto training.
