US law enforcement accounted for nearly 30% of data requests in 2023, Kraken says

Crypto exchange Kraken unveiled figures on law enforcement inquiries, revealing nearly 5,000 data requests spanning 69 countries in the past year.

Kraken revealed in a blog post on Monday it had received a total of 4,923 data requests in 2023, with the U.S. issuing the highest number at 1,393, consistent with figures from 2022. Among U.S. agencies, the Federal Bureau of Investigation (FBI) emerged as the most active, accounting for over 33% of all requests.

Despite representing only 1.8% of total U.S. agency requests, the U.S. Securities and Exchange Commission was responsible for nearly 60% of all regulatory agency requests within the country, according to Kraken. The exchange noted a notable increase of 33% in combined global law enforcement and regulatory agency requests in 2023 compared to 2022, with the British Virgin Islands and Australia experiencing the largest percentage spikes at 400% and 341%, respectively.

Coinbase, another major cryptocurrency exchange, reported receiving a total of 13,079 requests from law enforcement agencies between October 2022 and September 2023, marking a 6% increase from the previous year. However, Coinbase emphasized that its reported figures do not necessarily correspond to the number of requests fulfilled.

While the extent of data provided by Coinbase to law enforcement remains unclear, the exchange stated its intention to offer “anonymized or aggregated data.” Similarly, Kraken affirmed its commitment to supplying data “when we have a legal obligation to do so.”

In December 2023, blockchain forensic firm TRM Labs released findings indicating that over 60% of crypto investigations conducted by the organizations it surveyed yielded positive outcomes, with 99% of them seeking more crypto training.