Key Takeaways
- U.S government confiscates record ($1.2 billion) cryptocurrencies
- Seized coins continue to rise yearly
- This development shows that crypto adoption is on the rise by criminals
This development was revealed by Jarod Koopman, a director in the Internal Revenue Service (IRS), during an interview with local media CNBC. Koopman’s department focuses on tracing cybercrime, monitoring illicit transactions, and prosecuting money launderers.
He noted that the number of cryptocurrencies seized yearly had increased astronomically in recent years. In 2019, the department seized only $700,000 worth of coins. This increased to $137 million in 2020 before this current level in 2021.
These numbers could be due to the renewed commitments from different aspects of the U.S government to battle crypto crimes. Koopman admitted that the FBI, Secret Service, DEA, and Homeland Securities were among the agencies that worked together to achieve this new milestone in seized cryptocurrencies.
He also noted that the seized coins are well kept with the private keys deposited in the headquarters to avoid tampering. Additionally, once criminal investigations regarding illicit coins are completed, the U.S Marshals Service typically auctions the coins in the market.
It is understood that the U.S Marshals Service has sold off more than $170,000 worth of cryptocurrencies. Recently the US Justice Department appointed crypto custodian company Anchorage to hold seized coins.
This revelation can be interpreted in two ways. Crypto adoption is increasing since the value of seized coins is spiking yearly. Second, it also means that more criminals are turning to crypto-assets as a way to hide from the law.
However, security agencies appear to be catching on to this new method, and growing regulations could reduce criminal cases further.
What are your thoughts on the U.S government seizing $1.2 billion in cryptocurrency?
