Crypto Assets Worth $ 3.5 Billion Now In IRS Possession

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RJ Pierce, Tech Times November 19, 2021, 8:11 p.m.

Crypto was one of the IRS’s main targets this year, and they managed to rack up a large chunk of it through illegal activity.

(Photo: Zach Gibson / Getty Images) WASHINGTON, DC – APRIL 15: The Internal Revenue Service (IRS) building stands on April 15, 2019 in Washington, DC. April 15 is the deadline in the United States for residents to file their income tax returns.

NBC News reports that the IRS succeeded in seizing a total of $ 3.5 billion in cryptocurrency in fiscal 2021. This included 93% of all its seizures from October 1, 2020 to September 30, 2021.

Much of the crypto seized by the IRS over the past year is bitcoin, which has now become a major investment vessel for large financial institutions.

Much of the $ 3.5 billion figure has to do with high-profile business and in large part because of the surge in crypto stocks – especially bitcoin – over the past few years.

$ 1 billion of the cryptocurrency seized by the IRS is believed to come from the Silk Road case. A total of 69,000 pieces were removed from the crackdown, which brought down the infamous black market on the dark web.

In addition, an additional $ 10 million in digital currency was seized in a case involving a former Microsoft employee. The suspect was arrested while selling Xbox gift cards.

With cases like this, the IRS has realized how much the reputation of crypto has grown in the criminal world.

According to an investigation by the U.S. Treasury Department’s Financial Crimes Enforcement Network, bitcoin ransom payments totaling $ 590 million were made in the first half of 2021 alone.

And after?

For now, expect this not to be the IRS’s latest entanglement with illegal crypto.

An AlJazeera report says authorities expect their crypto foreclosures to continue through 2022. There are many plans already in place for the IRS to better identify cybercrimes that may use digital currency. to hide their traces.

(Photo: Getty Images)

Jim Lee, the IRS’s head of criminal investigations, says they see cryptocurrencies being used in more crimes in the future.

Also Read: The New Biggest Crypto Theft By An American Teenager? Canadian Police Arrest Young Thief After Stealing 36.5 Million Digital Coins

Cryptographic and criminal activities

For so long there was a mantra that drove many criminal investigators to hunt down criminals: ‘follow the money’. But in modern times it is quite difficult to do the same. And that’s where cryptocurrency comes in.

Many analysts say crypto is preferred by many cybercriminals for one thing: its anonymous nature, according to the BBC. If you play your cards right, you can trade billions of dollars in digital currency without ever leaving a trace.

This connection, however, is something that many crypto enthusiasts / online communities struggle against.

(Photo: Getty Images)

Coinbase has published a fact-checking article regarding the alleged widespread use of digital currencies for illicit financing purposes. There they applauded saying that while it is entirely possible for criminals to trade crypto to hide their tracks, they claim that less than 1% of all cryptocurrency transactions made are illegal.

They also argued that cash remains the primary mode of funding criminal activity. UN data reveals that a total of $ 1.6 trillion in cash is laundered each year, which is far beyond what’s happening in the crypto space.

Regardless, the IRS will always closely scrutinize digital currencies for any suspicion of criminal activity.

Related article: Different Types of Cryptocurrency

This article is the property of Tech Times

Written by RJ Pierce

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