Global Tax Enforcement Chiefs Found Leads To Potential $1 Billion Crypto Ponzi Scheme

J5 Joint Chiefs of Global Tax Enforcement Found Leads to $1 Billion Crypto Ponzi scheme
Image Credit: Canada Revenue Agency via Twitter

The Joint Chiefs of Global Tax Enforcement (known as the J5) found more than 50 leads to potential financial crimes including a possible $1 billion cryptocurrency Ponzi scheme.

The J5 is composed of the Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Fiscale Inlichtingen- en Opsporingsdienst (FIOD), the HM Revenue & Customs (HMRC), and Internal Revenue Service Criminal Investigation (IRS-CI).

This week, the J5 tax enforcement chiefs held a summit in London.  Investigators, experts, data scientists, and others were part of the meeting. They shared intelligence, analyzed data on real leads to investigate, and coordinated efforts to combat tax crimes and money laundering.

Tax Enforcement Chiefs are focused on leads involving DEXs and NFTs

The J5 chiefs are currently focused on leads pointing to illegal activities related to non-fungible tokens (NFTs) and decentralized exchanges (also known as DEXs).

DEXs are peer-to-peer marketplaces used by traders to buy and sell cryptocurrencies.  Crypto traders execute their transactions through the DEXs using self-executing agreements called smart contracts that are written in codes. Traders execute their transactions directly on DEXs without an intermediary to manage their funds. There are no regulators to oversee their cryptocurrency transactions.