IRS Trains Ukraine to Track Russian Cryptocurrency Activity – Here's What You Need to Know
The Internal Revenue Service (IRS) is offering virtual and in-person training sessions on tracing blockchain transactions for Ukrainian officials.
The criminal investigation division of the agency has joined hands with blockchain analysis firm Chainalysis and Ukrainian investigators to trace Russian individuals suspected of using cryptocurrency to conceal their assets following Russia’s invasion of Ukraine, Bloomberg reported Thursday.
Specifically, the IRS is sponsoring Ukrainian investigators' access to a Chainalysis tool that could be used in crypto-related probes.
“Sharing tools not only safeguards the US financial system, but the global economy,” IRS Criminal Investigation Chief Jim Lee reportedly said in a statement.
By collaborating with counterparts overseas to pursue sanctions evaders, the IRS aims to improve information-sharing and case development between the US and Ukraine.
The IRS has ramped up its focus on cryptocurrencies, citing that it's susceptible to financial frauds like money laundering, market manipulation, and tax evasion.
It has also been involved in some of the most significant recent crypto seizures, including the recovery of $3.6 billion worth of Bitcoin stolen from the 2016 hack of crypto exchange Bitfinex.
Last year, according to comments from Lee, the unit seized around $7 billion worth of crypto. At present, the IRS criminal unit has 23 ongoing sanctions-related probes.
The IRS has also launched a probe into Binance, alleging that the world's largest cryptocurrency had poor adherence to Anti-Money Laundering (AML) and Know Your Customer (KYC) controls.
In the FTX case, the IRS has put forth a total of 45 claims worth a staggering $44 billion related to unpaid taxes.
Regulators, central bankers,
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