US Tax Agency Says It Sees ‘Mountains of Fraud’ in Crypto and NFTs

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US Tax Agency Says It Sees 'Mountains of Fraud' in Crypto and NFTs For Hannah Perez

An IRS agent in the United States acknowledged that cryptocurrencies are the “future”, but considers that it is a space riddled with fraud and criminal activity.


Special agents for the United States Internal Revenue Service (IRS), the federal tax collection and enforcement agency, view the digital asset space as riddled with fraud.

Ryan Korner, an agent with the IRS criminal investigation division in Los Angeles, shared the shared vision among the agency’s investigators during a recent conference. According to the official, cryptocurrencies and tokens non-expendable assets (NFTs) represent fertile ground for fraud and other tax crimes such as money laundering, market manipulation and tax evasion.

We are seeing mountains and mountains of fraud in this areaKorner said during a virtual event organized by the Law School of USC Gould. The agent’s statements were quoted in a report by Bloomberg.

Celebrities do not escape the investigations of the IRS

The official stressed that the office recognizes the significant growth that the digital currency market has had; however, he considers that there is currently a wide use of said assets for illicit operations.

According to the report, US law enforcement is concerned about a number of space-related criminal activities, including when “they see people paying millions of dollars for assets like NFTs, which don’t seem to have that kind of inherent valueKorner said. He added that bad actors could be using NFTs to launder money from criminal operations such as drug trafficking.

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Korner also mentioned the involvement of high-profile investors and the ability they may have to influence cryptocurrency prices.”with just one tweet“. In this line, the federal agent warned that the influencers of social networks and celebrities”are not immune from IRS criminal investigations“.

We’re not necessarily looking for celebrities, but when they make a cheeky or outspoken comment that says, ‘Hey, IRS, you should probably come see me,’ that’s what we do.

In the past, federal agencies have gone after celebrities for promoting cryptocurrency projects. Last year, boxer Floyd Mayweather and music producer DJ Khaled settled with the US Securities and Exchange Commission (SEC) for failing to disclose that they had been paid to promote a crypto scheme through online campaigns. social networks.

US Agencies Unite to Fight Crypto Crimes

During his speech, Korner admitted that “this space is the future“, when he talked about digital assets. It is for this reason that the IRS is responding to the growth of the sector by strengthening its capabilities to combat cryptocurrency and NFT-related crimes.

In this context, the agent pointed out that the division is actively training and educating its officers with an emphasis on the digital space. At the same time, he stated that the IRS is currently seeking further collaboration with other federal agencies, including the Justice Department, to “make sure everyone is on the same page and stays ahead of criminals“.

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The report suggests that watchdogs are increasingly cracking down on fraud and fraudulent activities involving cryptocurrencies and other digital assets. as picked up DailyBitcointhe research team of I.R.S. seized a record $3.5 billion worth of crypto during fiscal year 2021.

According to a November report, 93% of all seizures made by the agency’s criminal agents involved digital currencies. Officials also noted at the time that they expect seizures of assets such as Bitcoin continue to increase as the use of cryptocurrencies spreads among a greater number of people.

I expect the trend of crypto seizures to continue as we move into fiscal year 2022. We are seeing crypto involved in a number of our crimes as we go.

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Article versioned by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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