A United States multi-agency investigation exposed some cryptocurrencies like Bitcoin to be an instrument in funding terrorist organizations.
The shocking revelation from the US Justice Department further told that the expected seizure would cost around $2 million worth of crypto and bolster illegal revolutionary criminal groups. These amounts, which was said to be about 300 wallets.
The Justice Department assistant attorney general has warned that the US government, notably the IRS, has developed tools to track blockchain transactions and tie it to their source.
Based on the released report, a website and several Facebook Pages were allegedly involved with the terrorist organizations and were already held in captive.
These busted sites and pages found out to raise funds that would directly be used to support inhumane organizations such as Al Qaeda, Hamas, and ISIS,
In an interview with the assistant attorney general for the Justice Department’s National Security Division, John Demers, he said: “By raising cryptocurrency on social media, these terrorists tried to bring terrorist financing into the current age. But these actions show that law enforcement remains a step ahead of them,” Demers said on behalf of several agencies on a call with reporters.
“By raising cryptocurrency on social media, these terrorists tried to bring terrorist financing into the current age. But these actions show that law enforcement remains a step ahead of them,”
Solving this emerging predicament, the US government, in partnership with the Internal Revenue Service, has developed tools to trace blockchain transactions and track the back user.
Among the first step done by the authorities was to block the users behind the crypto wallet. Blacklisting them makes them do time to regenerate.
But as these happen, the IRS unearthed additional repercussions to these crimes: tax evasion. Since the transactions are illegal, these are not passing the of the hands of the Tax Bureau.
In response to this, the IRS started to plan to contract Coinbase, Chainalysis, and other blockchain analysis firms, and ask them to either develop tools on their own or license from any the big player in the industry.
The IRS also added a question on US tax returns, more especially the asking individuals if they transact with Bitcoin or any crypto business. Those who tick the yes box, the box yes, could end up having their blockchain transactions looked into.
On the other hand, it is said that any crypto holders that check the box no but did hold crypto, will have a lot be subjected to many questioning, the report also noted.
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