IRS Called Cryptos And NFTs A Mountain Of Fraud
28 January 2022 - 07:00AM
NEWSBTC
The IRS is hot on the trails of cryptocurrency and non-fungible
tokens. They see these as fertile grounds for fraud, including tax
evasion, market manipulation, and money laundering. Unfortunately,
whether it’s a celebrity or not, people are always susceptible to
getting into the trap. The popularity of digital assets has created
a new challenge for government agencies to regulate this modern-day
currency. Regulators are working out how best to enforce existing
laws and deter investors from engaging with criminal activity. But
it will be an uphill battle without more resources or workforce.
The Los Angeles field office of the IRS’ criminal investigation
division is on a task to pursue tax crimes and related financial
matters. “We’re just seeing mountains,” said Ryan Korner, their
special agent-in-charge. Late Tuesday, at a virtual event, Korner
said that celebrities are not immune to criminal probes from IRS.
“We’re out there looking for anyone who makes openly or
deliberately blatant statements requesting intervention on behalf
of our agency,” he added, also referring specifically in this case
towards an investigation into tax evasion, which may lead them to
be more discreet about their finances in the future if found
guilty. IRS Crack Down on Crypto Financers The IRS is cracking down
on cryptocurrency financers. The investigative division of the
agency seized $3.5 billion worth in assets during 2021, accounting
for 93% of all financial crimes seizure by them that time frame,
and they ended up with 80 cases still actively working where their
primary violation was tied to cryptocurrency activity. When law
enforcement agencies see people paying millions for digital assets,
like NFTs, without any inherent value, they can be curious. Korner
says criminals could use these purchases as cover and launder money
from criminal enterprises like drug trafficking. The rising concern
among law enforcement officers is especially apparent with recent
incidents where criminals have purloined vast sums from innocent
victims using cryptocurrency transactions which allow them
anonymity while transferring funds internationally. The market is
flooded with NFTs and crypto, making it easy for manipulation.
High-profile investors have the power to sway prices with just one
tweet. Floyd Mayweather and DJ Khaled are no strangers when
promoting social media campaigns. Still, this time the Federal
Agency hit the two with Federal charges for failing to disclose
their ties after running an advertising scheme in which certain
companies paid them. The Internal Revenue Service is investing in
training all of its agents. So they will know how to deal with
crypto and NFT affairs. Because “this space represents the future,”
according to Korner. The head of the agency says they’re working
closely with other federal agencies, including the Justice
Department. This way, everyone can stay ahead in their respective
fields while ensuring they’re all working together seamlessly
against criminals. Featured image from Pixabay, chart from
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