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IRS Faulted Over Crypto Seizure Records — Here’s What to Know
IRS Faulted Over Crypto Seizure Records — Here’s What to Know
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BTCCSquare news:
The Internal Revenue Service’s criminal division faces criticism for inadequate documentation of seized cryptocurrency assets. A Treasury Inspector General report reveals systemic failures in tracking $8 billion in digital assets tied to open investigations.
Seizure memoranda, meant to formalize asset transfers, were often missing or incomplete. Critical details like wallet addresses and transaction amounts went unrecorded. In one instance, wallet addresses were erroneously swapped.
The lapses extend beyond paperwork. Three hardware wallets disappeared after FBI handovers, while IRS staff accidentally destroyed a recovery seed phrase—potentially locking the government out of funds permanently.
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