The IRS’s criminal investigation division has outlined four major crypto-related cases in its list of top investigations for 2023. These cases focus on cryptocurrency fraud and tax evasion, including high-profile individuals and elaborate schemes.
Karl Sebastian Greenwood, the co-founder of OneCoin, faced a sentence of 20 years for his involvement in what was deemed a fraudulent crypto asset operation.
The OneCoin case was highlighted as one of the most significant due to the scale of the fraud involved.
Another notable case involves Ian Freeman, a New Hampshire resident sentenced to eight years for operating a Bitcoin kiosk-based money laundering operation and failing to pay taxes from 2016 to 2019.
Similarly, Amir Elmaani, known as “Bruno Block,” the founder of Oyster Protocol, was investigated for tax evasion connected to his activities with Pearl tokens.
One of the most intriguing cases involved James Zhong, who was charged with stealing Bitcoin from the Silk Road marketplace in 2012.
This case stood out due to the time Zhong managed to evade detection and the dramatic discovery of the stolen assets in a floor safe and a popcorn tin.
These cases underscore the IRS’s increasing attention to cryptocurrency-related crimes. In its 2023 annual report, the agency revealed the initiation of over 2,676 cases, encompassing a wide range of tax and financial offenses.
With more than $10 billion in cryptocurrency seized since 2015, the IRS is sending a clear message about its commitment to tackling financial crimes in digital currency.
This approach highlights the evolving landscape of financial crime and the need for robust regulatory measures in the cryptocurrency market.
Also Read: IRS CI Ramps Up Crypto Tax Cases in Fiscal Year 2023
