The Internal Revenue Service Criminal Investigation (IRS-CI) has issued its annual report for 2021, which includes information on over 2,500 investigations and prosecutions.
The 49-page report covers a wide range of illicit acts investigated and punished by the IRS-CI this year, including drug cartels, money laundering, and dark web BTC mixing operations.
Financial criminals were charged with laundering money for the Sinaloa cartel, receiving COVID-19 relief loans unlawfully, and mixing BTC for dark web operations.
A Russian-Swedish national who was detained in Los Angeles for his suspected involvement in the BTC money laundering organization Bitcoin Fog was among those on the list. The majority of Bitcoin Fog’s BTC is suspected to have come from darknet marketplaces involved in narcotics trafficking, identity theft, and computer fraud.
Once again, substantial evidence refutes the idea that Bitcoin is an untraceable digital money that exists outside the reach of the law. Despite this, Bitcoin anarchists and industry heavyweights continue to spread these falsehoods.
The following are some major statistics from the IRS-CI study
- A total of $2.19 billion in tax fraud has been discovered.
- Other financial crimes totaling $8.18 billion have been discovered.
- There were 1,497 warrants executed, with an 89.4% conviction rate.
William Callahan of Blockchain Intelligence Group spoke at this year’s CoinGeek Conference in New York, outlining what a more legitimate blockchain economy would look like and the technologies that could help us get there. He’s worked in law enforcement and blockchain analytics for a long time.
Despite its associated with criminality, Callahan’s presentation demonstrated how blockchain may be a useful tool for law enforcement organizations and could improve their investigations. It may also make tasks like financial regulatory compliance easier, decreasing the need for large-scale investigations in the first place and lowering criminal risk in the workplace.
An eye-opening panel titled “Investigating Criminal Activity on the Blockchain” looked more closely at the steps the digital money and blockchain businesses need to take to stay on the right side of the law and change public perception of Bitcoin and blockchain in general on the final day of CoinGeek New York.
While there is considerable work to be done, the most important issue is to overcome the opposition to cooperating with regulators and law enforcement. We’ve got concrete proof from the SEC that this hesitancy is preventing the creation of a spot-BTC ETF. This puts BTC maximalists in a difficult position: flip and embrace regulatory compliance, something many of them have opposed for years, or face the end of the road for the long-promised ETF.
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