The IRS Lists Top Crypto-Related Cases in 2023
The criminal investigation unit of the United States Internal Revenue Service (IRS) has identified four significant crypto-related cases among its top ten investigations in 2023. These cases involve cryptocurrency seizures, fraudulent practices, money laundering, and other schemes.
OneCoin Co-Founder Sentenced to 20 Years
One of the notable cases on the list is the conviction of OneCoin co-founder Karl Sebastian Greenwood, who received a 20-year prison sentence for his involvement in marketing and selling a fraudulent crypto asset.
Money Laundering Scheme and Tax Evasion
Another case involved Ian Freeman, a New Hampshire resident sentenced to eight years in prison for operating a money laundering scheme using Bitcoin (BTC) kiosks and failing to pay taxes. The IRS also investigated Amir Elmaani, known as “Bruno Block,” founder of Oyster Protocol, for tax evasion related to minting and selling Pearl tokens.
James Zhong’s Silk Road BTC Theft
One of the oldest cases on the IRS list is the story of James Zhong, who was charged with stealing BTC from the Silk Road marketplace in 2012. After evading authorities for nearly ten years, Zhong was finally caught in November 2021 with over $3 billion worth of crypto hidden in a floor safe and a computer concealed in a popcorn tin.
The IRS’s Annual Report on Criminal Investigations
In its annual report, the IRS criminal investigation unit revealed that it initiated over 2,676 cases in the 2023 fiscal year, involving more than $37 billion related to tax and financial crimes. Since 2015, the department has seized over $10 billion worth of cryptocurrency.
Hot Take: IRS Cracks Down on Crypto Crimes
The United States Internal Revenue Service (IRS) has demonstrated its commitment to combating crypto-related crimes by highlighting its top ten investigations in 2023. These cases include fraudulent activities, money laundering, tax evasion, and theft. The IRS’s success in apprehending criminals and seizing significant amounts of cryptocurrency sends a strong message to those involved in illicit activities within the crypto space. As the IRS continues to prioritize crypto-related investigations, it is crucial for individuals and businesses operating in the crypto industry to ensure compliance with tax and financial regulations to avoid facing legal consequences.
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