The U.S. Internal Revenue Service's (IRS) Criminal Investigation Division has highlighted four cryptocurrency-related cases among its top 10 "most notable and high-profile investigations" of 2023.
In a notice issued on December 11, the IRS division pointed out four significant cases from the past year involving cryptocurrency seizures, fraudulent activities, money laundering, and other illicit schemes. Karl Sebastian Greenwood, co-founder of OneCoin, was involved in the third most high-profile investigation of the year, charged with promoting and selling deceitful crypto assets. In September, he was sentenced to a 20-year prison term.
Another case involves Ian Freeman from New Hampshire, who was sentenced to eight years in prison for orchestrating a money laundering scheme utilizing Bitcoin. Government agencies also collaborated on the investigation of Amir Elmaani, known as "Bruno Block," associated with tax evasion related to the creation and sale of Pearl tokens between 2016 and 2019 as part of the Oyster Protocol.
One of the lengthiest criminal cases listed by the IRS involves James Chung, accused of pilfering BTC from the Silk Road Market in 2012. Chung managed to conceal his involvement in the crime for nearly a decade until authorities raided his residence. In November 2021, a substantial amount of cryptocurrency (then valued at over $3 billion) was discovered stored in a computer hidden in a floor safe and popcorn cans.
According to the IRS Criminal Investigation Division's annual report released on December 4, they initiated over 2,676 cases in fiscal year 2023, encompassing more than $37 billion in tax and financial crimes. Over the years since 2015, governments have seized upwards of $10 billion in cryptocurrency.
