Topic: US DOJ taps 150+ prosecutors to fight cryptocurrency crime (Read 65 times)

The agencies are really preparing for something big and hiring an 87k employees is a huge regulations to make things sure that everything is accountable.

As President Biden rolls out a blueprint for future regulations

The US Department of Justice has tapped more than 150 federal prosecutors to form a team keenly focused on cracking down on cryptocurrency-related crimes, it announced on Friday.

Dubbed the Digital Asset Coordinators Network, this group will be led by the DoJ's National Cryptocurrency Enforcement Team (NCET). The assembled attorneys will, it's hoped, receive training to understand cryptocurrency technologies, gain technical expertise, and learn how best to investigate and prosecute criminal cases.

"Developments in digital assets have created a new landscape for criminals to exploit innovation to further significant criminal and national security threats domestically and abroad," Assistant Attorney General Kenneth Polite Jr said in a statement.

"Through the creation of the DAC Network, the Criminal Division and the National Cryptocurrency Enforcement Team will continue to ensure that the Department and its prosecutors are best positioned to combat the ever-evolving criminal uses of digital asset technology."

Eun Young Choi, who was previously the Senior Counsel to the Deputy Attorney General, will lead the NCET. Choi said cryptocurrency crimes are complicated and require prosecutors with expertise from different areas, such as tax, national security, or environment.

"Digital-asset crimes are truly multidisciplinary," she told the Wall Street Journal. "They are cross-border, complex, and challenging investigations and they require a certain level of competency."

The Digital Asset Coordinators Network's launch is part of a wider effort by the US government to regulate the cryptocurrency industry.

President Biden signed an executive order in March promising to roll out policies and rally agencies to better protect folks and businesses from the risks of digital assets, keep the country's economy stable and secure, and prevent illicit financial crimes.

On Friday, the White House emitted details of a framework developed over six months by government officials as a result of that order. The framework lays out what federal agencies and departments need to do next.

It's pretty extensive. It includes stepping up efforts to regulate cryptocurrency platforms and other non-bank payment providers; make cross-border payments easier; ensure digital assets can be used fairly and inclusively by all; improve cybersecurity at financial orgs; investigate boosting the security and reducing the environmental impact of cryptocurrencies; track the energy use of digital assets; extend rules against illicit finance to crypto-coins and tokens; and disrupt criminals who rely on digital assets.

It also calls for the exploration of a US Central Bank Digital Currency – a digital dollar of some kind – that can be used for payments perhaps as an alternative to independent crypto-coins and tokens.

At this stage, it's all planning, research, and brain storming. Hard policies and rules and regulations will be developed over time as the federal government converges on a plan for cryptocurrencies, seemingly to mitigate the downsides and tackling crime without going as far as banning it or the like. The tokens can be used for legit purposes, after all.

Drilling down into the plans, the Office of Science and Technology Policy and the National Science Foundation will develop a Digital Assets Research and Development Agenda to boost research into cryptography, cybersecurity, and blockchain technologies.

The Department of Energy and the Environmental Protection Agency will be tasked with monitoring the environmental impact of mining cryptocurrencies and carrying out financial transactions.

"The United States has an interest in responsible financial innovation, expanding access to safe and affordable financial services, and reducing the cost of domestic and cross-border funds transfers and payments, including through the continued modernization of public payment systems," President Biden's order stated. ®


https://www.theregister.com/2022/09/17/doj_cryptocurrency_crime/

With the IRS hiring more employees, here’s who agents may target for audits

As the Democrats’ spending plan moves closer to a House vote, one of the more controversial provisions — nearly $80 billion in IRS funding, with $45.6 billion for “enforcement” — has raised questions about who the agency may target for audits.

IRS Commissioner Charles Rettig said these resources are “absolutely not about increasing audit scrutiny on small businesses or middle-income Americans,” in a recent letter to the Senate.

However, with the investment projected to bring in $203.7 billion in revenue from 2022 to 2031, according to the Congressional Budget Office, opponents say IRS enforcement may affect everyday Americans.

“Our biggest worry in this is that the burden for these audits will land on Walmart shoppers,” Rep. Kevin Brady, R-Texas, said Tuesday on CNBC’s “Squawk Box.”

Overall, IRS audits plunged by 44% between fiscal years 2015 and 2019, according to a 2021 Treasury Inspector General for Tax Administration report.

While audits dropped by 75% for Americans making $1 million or more, the percentage fell by 33% for low-to-moderate income filers claiming the earned income tax credit, known as EITC, the report found.

Ken Corbin, chief taxpayer experience officer for the IRS, said returns claiming the EITC have “historically had high rates of improper payments and therefore require greater enforcement,” during a May House Oversight Subcommittee hearing.

Since many lower-income Americans are wage earners, these audits are generally less complex and many may be automated.

“The resources to modernize the IRS will be used to improve taxpayer services — from answering the phones to improving IT systems — and to crack down on high-income and corporate tax evaders who cost the American people hundreds of billions of dollars each year,” according to a Treasury official.

The department estimated in a 2021 report that the funding may cover about 87,000 employees, which has been widely reported. However, these hires may include a range of positions, such as auditors, customer service and IT workers, the Treasury clarified in a statement to CNBC on Wednesday.

https://www.cnbc.com/2022/08/09/with-new-agents-heres-who-the-irs-may-target-for-audits.html