A recent report from the US Treasury Inspector General for Tax Administration highlighted significant shortcomings within the Internal Revenue Service (IRS) Criminal Investigation division regarding its handling of digital assets. Between December 2023 and January 2025, the IRS-CI repeatedly failed to adhere to established protocols on seizing and safeguarding cryptocurrencies. Key recommendations from the report include better training for IRS personnel on seizure procedures, the creation of an inventory system to accurately manage seized digital assets, and updates to internal guidelines concerning record-keeping and memorandum preparation timelines. The report comes in light of increased interest in the IRS's role in crypto seizures, particularly following the Trump administration's endeavors to establish national Bitcoin reserves. Current estimates suggest that the US government holds over $21 billion in cryptocurrencies, with notable seizures including over 94,000 BTC from the Bitfinex hack and more than 50,000 BTC from the Silk Road marketplace.

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