IRS plans to increase surveillance of cryptocurrency, leading to potential DOJ confiscation

The IRS is planning to increase its surveillance of cryptocurrency usage, which could result in the DOJ seizing cryptocurrency at an unprecedented rate. The DOJ's 2022 report on Executive Order 14067 recommends expanding its authority over criminal, civil, and administrative forfeiture. Despite the FBI and IRS seizing over $4 billion in cryptocurrency between 2014 and 2021, the DOJ argues that the US government is struggling to seize cryptocurrency. With the IRS collecting vast amounts of new information on Americans' cryptocurrency use, the DOJ may find new arenas for cryptocurrency confiscation, even without an actual crime being committed. The proposed crackdown on cryptocurrency by the IRS highlights the risks of mass data collection and should be monitored closely by users. The government's increasing interest in cryptocurrency, whether for audits or confiscation activities, is a cause for concern. Nicholas Anthony, a policy analyst at the Cato Institute, questions the rationale for the cryptocurrency provisions in The Infrastructure Investment and Jobs Act and advocates for a better framework for financial privacy in the digital age. This article is for informational purposes only and does not constitute legal or investment advice.