CIA Working on Various Crypto-Focused Projects, Director Confirms

CIA Is Working on Various Crypto-Focused Projects, Director Confirms

The director of the U.S. Central Intelligence Agency (CIA) has revealed that the agency is working on a number of cryptocurrency-focused projects. Cryptocurrencies “could have enormous impact on everything from ransomware attacks,” he said.

CIA Has Been Working on Various Crypto Projects

CIA Director William Burns revealed Monday at the Wall Street Journal’s CEO Summit that the agency is working on “a number of different projects focused on cryptocurrency.”

Responding to a question from someone in the audience about whether the CIA is on top of cryptocurrencies, Burns said:

This is something I inherited. My predecessor had started this, [and] had set in motion a number of different projects focused on cryptocurrency.

Burn elaborated that the agency is “trying to look at second- and third-order consequences as well and helping our colleagues in other parts of the U.S. government to provide solid intelligence on what we’re seeing as well.”

The CIA director explained that cryptocurrencies “could have enormous impact on everything from ransomware attacks … because one of the ways of getting at ransomware attacks and deterring them is to be able to get at the financial networks that so many of those criminal networks use and that gets right at the issue of digital currencies as well.”

The U.S. government has made combating ransomware a key priority. In June, the Biden administration expanded “cryptocurrency analysis to find and pursue criminal transactions” as part of its strategy to combat ransomware.

In addition, the Department of the Treasury has taken actions against cryptocurrency exchanges “responsible for laundering ransoms” as part of the whole-of-government effort to counter ransomware. One exchange was sanctioned in September and another in November.

What do you think about the CIA working on a number of crypto-focused projects? Let us know in the comments section below.

CIA director says agency currently has ‘a number of different projects’ focused on crypto

William Burns said that building knowledge on crypto was “an important priority” for the CIA, and he planned to devote “resources and attention” to it.

Current director of the Central Intelligence Agency William Burns said his predecessor at the government agency initiated projects focused on gathering intelligence on cryptocurrency.

Fielding a question on crypto at the Wall Street Journal CEO Council Summit on Monday, Burns said the CIA was looking to add expertise in cryptocurrencies and blockchain to its team of intelligence analysts in addition to communicating with industry experts. He said the challenges from the crypto space “could have enormous impact” on the United States given what he has already seen in ransomware attacks.

“My predecessor had started this,” said Burns, likely referring to the actions of former acting CIA director David Cohen. “[They] had set in motion a number of different projects focused on cryptocurrency and trying to look at second- and third-order consequences as well and helping with our colleagues in other parts of the U.S. government to provide solid intelligence on what we’re seeing as well.”

Screenshot from Wall Street Journal’s CEO Council Summit on Dec. 6

He added that building such knowledge on crypto was “an important priority” for the Agency, and he planned to devote “resources and attention” to it. The CIA director did not mention specifics on the direction the Agency planned to take in regard to fighting cyberattacks, but hinted it would aim to “get at the financial networks” for criminal groups using digital currencies for ransom. 

Burns, who assumed the director position in March, has seen hackers demand millions in crypto over an attack on Colonial Pipeline system in May, but also a task force from the U.S. government respond by recovering the majority of the lost funds. Michael Morrell, a former acting CIA director from 2012 to 2013, said “blockchain analysis is a highly effective crime fighting and intelligence gathering tool,” one underutilized by law enforcement agencies.

Related: CIA Has Had Keys to Global Communication Encryption Since WWII

There is no fixed term for a CIA director, meaning Burns will likely serve at the Agency at the pleasure of U.S. President Joe Biden. At the time of publication, Biden has yet to announce his picks to fill three empty seats on the board of governors of the Federal Reserve System.