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The Internal Revenue Service is hot on the trail of bitcoin and non-fungible tokens. Tax evasion, market manipulation, and money laundering are all seen as fertile grounds for fraud. People are always susceptible to falling into the trap, whether they are celebrities or not.

The growth of digital assets has presented government authorities with a new problem in regulating this modern currency. Regulators are figuring out how to appropriately police existing laws while discouraging investors from engaging in criminal activities. However, it will be a difficult battle without additional resources or a larger workforce.

The IRS’ criminal investigation division’s Los Angeles field office is tasked with pursuing tax evasion and related financial concerns. “We’re simply seeing mountains,” Ryan Korner, their special agent in charge, explained.

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Korner stated late Tuesday during a virtual event that celebrities are not immune to IRS criminal investigations. “We’re looking for anyone who makes openly or deliberately blatant statements requesting intervention on our agency’s behalf,” he added, referring specifically in this case to an investigation into tax evasion, which may lead them to be more discreet about their finances in the future if found guilty.

The Internal Revenue Service is tightening down on bitcoin financiers. The agency’s investigative section seized $3.5 billion in assets in 2021, accounting for 93 percent of all financial crimes confiscated by them during that time period. They ended up with 80 investigations remaining outstanding where the major infraction was connected to cryptocurrency activities.

When law enforcement organizations observe people paying millions of dollars for digital assets with no intrinsic worth, such as NFTs, they may get suspicious. According to Korner, criminals could use these purchases as a pretext to launder money from illicit operations such as drug trafficking.

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The growing anxiety among law enforcement personnel stems from recent events in which criminals have stolen large sums of money from unsuspecting victims through cryptocurrency transactions, which allow them to remain anonymous while transferring monies overseas.

The market is inundated with NFTs and crypto, making manipulation easier. High-profile investors have the ability to influence prices with a single tweet.

When it comes to advertising social media initiatives, Floyd Mayweather and DJ Khaled are no strangers. Nonetheless, the Federal Agency charged the two with failing to disclose their ties after running an advertising system in which certain corporations paid them.

All of the Internal Revenue Service’s agents are being trained. As a result, they will be prepared to cope with crypto and NFT issues. Because, according to Korner, “this area signifies the future.”

According to the agency’s head, they are collaborating closely with other federal agencies, including the Justice Department. This way, everyone can stay ahead in their various disciplines while also guaranteeing that they’re all working together to combat criminals seamlessly.

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