Speaking to the media, IRS Chief, Jim Lee, claimed that the federal regulator is going to confiscate billions of dollars from the cryptocurrency market and traders in 2022. Commenting on the matter of crypto regulation, he claimed that 2021 was a great year for the organization.
Chief Lee told Bloomberg Crypto that during the ongoing year, the financial regulator was able to take into custody more than $3.5 billion. Shedding further light on the matter, he claimed for the fiscal year 2021, more than 95% of all the financial raid spoils consisted of cryptocurrencies.
Crypto Assets and White-Collar Crimes
The IRS chief recently revealed that the financial criminals had taken a great liking to the cryptocurrency market for conducting their schemes. He claimed that a staggering 95% of all the assets that have been seized by the tax collection authority consist of digital assets. He further explained that the confiscated digital currencies were involved in various criminal activities.
The IRS chief further added that the white-collar criminals are using the shed of the cryptocurrency markets to perform tax evasion, money laundering, substance smuggling, and other similar crimes. He further explained that out of the total $3.5 billion worth of impounded cryptocurrencies, $1 billion belong to the notorious dark-web market known as Silk Road.
IRS claimed that its special Criminal Investigation Unit has become more active in the cryptocurrency market to fish out the scams and Ponzi schemes. He reported that a new program known as OSINT or open-source intelligence training had been started to tackle the matter more effectively. A data center from North Virginia has also collaborated with the IRS to make progress in the field.
The financial regulators in the Netherlands also reported having seized $29 million in cryptocurrencies this year. The proactive approach of the IRS is not a coincidence but a measure that is in line with the new infrastructure bill signed by President Biden to impose taxes on the crypto brokers in lieu of capital gains.