The IRS Reveals Top Crypto-Related Cases of 2023
The Criminal Investigation division of the U.S. Internal Revenue Service (IRS) has published a list of its top ten “most prominent and high-profile” cases investigated in 2023, with four of them involving cryptocurrencies.
According to division chief Jim Lee, the investigations targeted international tax schemes, multi-level marketing schemes related to crypto, and one of the largest fraud schemes in history centered around renewable fuel credits.
Crypto Founder Sentenced to Prison
One notable case on the list was that of Amir Bruno Elmaani, the founder of cryptocurrency Oyster Pearl. Elmaani failed to file a tax return while spending millions on luxury items. As a result, he was sentenced to four years in prison and ordered to pay $5.5 million in restitution.
Silk Road Hacker Faces Consequences
A Silk Road fraud defendant named James Zhong ranked seventh on the list. He stole 50,000 bitcoins from the darknet marketplace and was sentenced to one year and one day in prison. All his bitcoin, worth about $3.4 billion at the time, were also forfeited.
Bitcoin Money Laundering Scheme Uncovered
In fourth place was Ian Freeman, a New Hampshire man involved in a bitcoin money laundering scheme. Freeman helped launder $10 million from online scams and received a sentence of eight years in prison. Restitution to victims was also ordered.
OneCoin Co-Founder Sentenced
Karl Sebastian Greenwood, co-founder of the OneCoin scam that defrauded millions worldwide, claimed the third spot on the list. He was sentenced to 20 years in prison and required to pay approximately $300 million.
Hot Take: IRS Targets Crypto Crimes
The IRS has demonstrated its commitment to cracking down on cryptocurrency-related crimes. By highlighting these cases, they aim to deter potential offenders and maintain the integrity of the tax system. As cryptocurrencies continue to gain popularity, law enforcement agencies will likely increase their efforts to combat fraud and illicit activities in the crypto space.
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