In 2021, the IRS seized $3.5 billion in crypto, accounting for 93 percent of all assets confiscated. The agency anticipates this number to rise even more in the coming year 2021, with a top official stating that <a href="https://www.cryptoknowmics.com/news/cryptocurrencies-not-good-for-nations-stabilization-hillary-clinton-warns/">cryptocurrencies</a> are being utilized in more crimes.

The IRS has been assisting its cybercrime team since 2015. This section looks into tax offenses that have the Internet and other Internet-based technologies. Internet technology allows criminals to engage in "illegal conduct without a physical presence" while remaining anonymous.
<h2>IRS Annual Report for Seizing Crypto in the Fiscal Year 2021</h2>
The IRS asserted in its annual report for the fiscal year 2021 that these online crimes "nearly always entail the use of cryptocurrencies to conduct criminal behavior." It has made it critical for the agency to keep a close eye on the cryptocurrency<a href="https://www.newsbreak.com/news/2441001684451/irs-sees-crypto-seizures-figuring-billions-of-dollars-in-2022" target="_blank" rel="nofollow noopener"> market</a>. This has paid off major success. Cryptocurrency seizures made up 93 % of all seizures made by the IRS Criminal Investigation.

"It's a massive, huge number," said Jarod Koopman, the agency's current executive director of Cyber and Forensics Services.

"Certainly, we're seeing a shift in our investigative work," he added, noting that significant cryptocurrency seizures were becoming commonplace for the agency.
<h2>The year 2022: even bigger year for IRS</h2>
This trend is expected to continue well beyond 2022, according to the agency. The director of Criminal Investigations, Jim Lee, said,
<blockquote>"I expect a trend of crypto seizures to continue as we move forward into fiscal year '22. We're seeing crypto involved in a number of our crimes as we move forward."</blockquote>
Koopman also intimated that the IRS is already working on a few instances that could result in the seizure of even more Bitcoin than last year. He stated,"
<blockquote>"We do expect that to stay somewhat in that range, based on some investigations we're currently working on that are pretty large in size and scope. We might be topping that figure next year."</blockquote>
Last year, government enforcement agencies penetrated the <a href="https://www.cryptoknowmics.com/news/the-us-state-department-offering-dark-web-informants-crypto-bounties-under-its-rfj-program/">dark web</a> marketplace, notably the IRS's Cyber Crime Unit. The most high-profile case handled by the CIA was Silk Road. The US government forfeited thousands of Bitcoins worth over $1 billion in November, the greatest seizure in history.

IRS Seizes $3.5B Worth of Crypto in the Year 2021, Expects a More Prominent Figure in 2022

In 2021, the IRS seized $3.5 billion in crypto, accounting for 93 percent of all assets confiscated and expects a more prominent figure in 2022.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

IRS Seizes $3.5B Worth of Crypto in the Year 2021, Expects a More Prominent Figure in 2022

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