The Internal Revenue Service (IRS) is the workhorse of the American authorities to fight violations of tax law. Violations, regularly involving the crypto industry, and whose understanding is still a major challenge for the IRS today. Fortunately, the latter can count on its partner Chainalysis.
Chainalysis, an essential strategic partner for the IRS?
Today, it is no longer a secret that the US tax authorities are tracking cryptos. In particular, fraudsters who hope to evade taxes, using cryptos as a shield. Indeed, for at least two years, this objective has been the top priority of the Internal Revenue Service (IRS).
Since she embarked on this quest, the IRS has seized some 10 billion in illegal crypto assets. An impressive success of which the agency cannot claim the laurels. Because, this hunt would never have succeeded, without the defining contest of Chainalysis and his tracing skills.
Moreover Jim Lee, the person in charge for the criminal investigations of the IRS (IRS-CI) recognizes it. Indeed, in a recent interview, the executive highlighted the crucial role the platform plays. Particularly in the fight against crypto tax evasion.
“When cryptos appeared, we were already thinking about digital crimes and money trails using Web2. However, the IRS’ ability to understand, investigate, and eventually prosecute and seize cryptos and digital assets has become dependent on tools developed by private firms.[comme Chainalysis, Ndlr]»said Lee.
Simply put, without this collaboration, none of the IRS investigations targeting crypto firms would have really succeeded. According to the boss of the IRS-CI, two major elements favored the opposite scenario.
The first essentially concerns the ability of Chainalysis and its infrastructure to analyze blockchain activities. It is in particular the latter that has enabled the IRS to realize the explosion, over the past two years, of illicit crypto activities.
The second element, no less negligible, which has made these successes possible is training. Indeed, it is thanks to the latter, also delivered with Chainalysis, that the IRS succeeds in strengthening its technical capacities.
Skills that have significantly increased his skills in financial investigation both locally and internationally. Despite everything, illicit crypto operations still have a place in the crypto industry.
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