IRS official highlights increase in fraud amid crypto adoption

TL; DR Breakdown

• IRS official talks fraud and crypto adoption at a virtual event
• Crimes are on the rise in the crypto sector
• Korner highlights market manipulation

The issue of scams and hacks in the crypto sector is one aspect that will continue to abound despite regulators trying to curb it. This is because these malicious actors would continue to wreak havoc in the market no matter how regulators try. According to a top official at the Internal Revenue Service, the crypto sector is set for a massive rise this year. However, the IRS official positions that the growth might come hand in hand with many scams across the sector.

Crimes are increasing in the crypto sector

Giving his two cents at an event on Tuesday, the IRS official Ryan Korner touched on various topics in the crypto sector. Korner, at this time, is one of the top officials of the criminal investigations office of the IRS located in Los Angeles. In a Bloomberg report, Korner was quoted as saying that the sector has witnessed a mountain load of crimes over the years.

The IRS official mentioned that there had been a wide adoption and growth of digital assets. However, he positions that more people are now using it for more than it was created. Giving a hint into these events, Korner mentioned that malicious actors are now using the assets to evade paying taxes, launder money and manipulate the crypto market, among other ills.

IRS official talks about market manipulation

Even though the crimes were rampant in most areas highlighted above, the IRS official said that market manipulation is now leading the pack. He cited an example of investors swaying public opinion and, in return, moving prices of tokens high or low with something as simple as a statement. Korner also talked about various celebrities trying to influence major digital assets over the years.

Citing an example, he talked about the recent failed EthereumMax token, widely influenced and advertised by influential figures Kim Kardashian and Floyd Mayweather. Korner mentioned that this doesn’t mean they would target celebrities, but when they continue to make such posts, they will get a visit from the body.

The IRS official also told attendees that the regulatory body believes that the sector is the future. This is why officials are grounded in courses bordering digital assets to NFTs. He also mentioned that they are now working with other regulatory agencies to roll out information that would aid investors from falling prey to criminals. IRS announced that it took custody of $3.5 billion worth of illicit funds across 2021. The regulatory body mentioned that the figure was about 93% of its entire seized portfolio.