In 2021, the United State’s Internal Revenue Service (IRS) confiscated $1.2 billion in cryptocurrency, according to the director of the agency’s cybercrime unit. That sum is massively higher than the previous year’s total.
According to a CNBC report, the US government has a large number of bitcoins. The report states that the government has increased its surveillance of cryptocurrencies, as a result, has confiscated a series of illegal cryptos.
The IRS revealed earlier this year that it had seized $3.5 billion in cryptocurrency in the fiscal year 2021.
According to reports, the US government has seized 170,000% more cryptocurrency this year than it did in 2019. Jarod Koopman, director of the Internal Revenue Service’s cybercrime unit, told CNBC that, “In the fiscal year 2019, we had about $700,000 worth of crypto seizures. In 2020, it was up to $137 million. And so far in 2021, we’re at $1.2 billion”.
The government has auctioned bitcoins in the past, usually at very low rates. In the next auction, it will sell crypto-related to the BitConnect lawsuit for $56 million. However, in this case, the monies will be used to pay the victims of the disaster.
The rise of crypto-related seizures is alarming, but not unexpected. In retrospect, the crypto market has increased in popularity in recent years, and the value of assets has risen in lockstep. This may explain why criminals are increasingly employing cryptography.
In addition, the US government has only recently begun to look into the crypto market for inconsistencies. They have made it one of their main priorities to prevent the asset class from being used to finance illegal operations. The IRS and other government agencies are all working on various measures in this regard.
The Internal Revenue Service (IRS) has been working hard to add crypto-related clarifications to the 1040 tax form. It also collaborates with Taxbit to verify that merchants accurately submit their statistics.
In the meantime, the Securities and Exchange Commission in the United States is proposing a broad framework to increase investor protection. They’ve previously stated this, and they’re presently assessing several ETF applications.