The Criminal Investigations Division of the US Internal Revenue Service has announced it is stepping up its cooperation with its counterparts abroad as part of efforts to identify people and companies evading Western sanctions.
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Where the agency revealed that it is working with a company Chainalysis Chainalysis The blockchain specialist and Ukrainian investigators, to track down Russians who may be using cryptocurrencies to hide their assets, amid financial restrictions imposed over Moscow’s invasion of Ukraine.
According to a report by Bloomberg, the IRS is subsidizing Ukraine to gain access to a tool Chainalysis, which facilitate cryptocurrency investigations. It has also organized training sessions for the country’s law enforcement authorities, both virtual and real, on transaction tracing blockchain.
It is worth noting that these efforts are expected to improve the exchange of information and the development of cases between the United States and Ukraine, according to the Revenue Service in a statement, as confirmed by the head of criminal investigations at the US Tax Agency. Jim Lee:
“Participation tools will protect the US financial system, and indeed the global economy.”
Meanwhile, authorities around the world have issued warnings that sanctioned countries such as the Russian Federation and Iran may use cryptocurrencies to bypass international restrictions.
A recent Bloomberg report revealed that the world’s largest cryptocurrency exchange, Binanceis facing investigation by the US Department of Justice, regarding suspected violations of Russia sanctions.
In turn, the co-founder and CEO of the company explained Chainalysis, Michael Gronagerthat cryptocurrencies do not have the appropriate liquidity to support the evasion of collective penalties, but this is happening on a smaller scale.
He added that work continues to determine how much Russian oligarch money flows through Ukraine.
Moreover, he pointed out Gronager Noting that cryptocurrencies are playing an unprecedented role in the war, with donations to support both sides, he pointed out as an example that about five million dollars were transferred in this way to nearly 100 pro-Russian groups over the past year.
Also read: The United States is investigating the “Binance” exchange for possible violations of Russian sanctions
Finally, Ukraine and the United States are working together on other cryptocurrency-related fronts, and with the support of American law enforcement, Ukrainian police have disrupted a network of cryptocurrency exchange services suspected of laundering criminal proceeds from ransomware attacks and fraud schemes, and announced the closure of nine from these platforms earlier this May.