US, UK, Canada, Australia, Netherlands Share Crypto Criminal Leads, Including a Potential $1B Ponzi Scheme – Officials from the United States, the United Kingdom, Australia, Canada, and the Netherlands have shared information and uncovered over 50 crypto-related criminal leads, including one that could be a $1 billion Ponzi scam.
Bloomberg reported Friday that the leaders of tax enforcement from the J5 countries gathered in London this week to share information and data in an attempt to identify sources of unlawful cross-border crypto activity.
The J5 was formed in response to the OECD’s call for countries to do more to tackle tax evasion facilitators. The Australian Taxation Office (ATO), Fiscale Inlichtingen- en Opsporingsdienst (FIOD), Canada Revenue Agency (CRA), the Internal Revenue Service Criminal Investigation (IRSCI), and HM Revenue & Customs (HMRC) are all part of it.
The officials found more than 50 crypto-related criminal leads during the meeting, according to the publication.
The Internal Revenue Service’s (IRS) chief of criminal investigations, Jim Lee, told reporters on Friday:
“Some of these leads concern individuals with large NFT transactions involving potential tax or other financial crimes in our jurisdictions.”
One lead “appears to be a $1 billion Ponzi scheme,” he said, adding that it “touches every single J5 country.”
Furthermore, officials have identified leads concerning decentralized exchanges and financial technology firms, according to Lee, who added that “major targets” could be announced as soon as this month.
The Dutch Fiscal Information and Investigation Service (FIOD) chief and general director, Niels Obbink, told reporters:
“NFTs are one of the newest digital techniques to launder money through trade.”
Cryptocurrency, according to Obbink, has “less control, less supervision, and limited regulation, making it open to fraud.” “It must have our attention,” he concluded.