“Some of these leads I’m talking about, they involve individuals with significant NFT transactions revolving around potential tax or other financial crimes throughout our jurisdictions,” said IRS-CI Chief Jim Lee as quoted by Bloomberg on Friday.
Lee added that one of their leads “appears to be a $1 billion Ponzi scheme. That’s billion with a B and this lead also touches every single J5 country.”
Furthermore, Lee said they have leads involving DEXs and financial technology (Fintech) companies. The J5 tax enforcement chiefs are expected to announce “significant targets” of investigations this month.
On the other hand, the Chief and General Director of the Dutch Fiscal Information and Investigation Service Niels Obbink said, “NFTs are one of the new modern digital ways of trade-based money laundering. And since there is — comparing with more well-known classic sectors — less control and less supervision and a limited regulation that makes it vulnerable for fraud, it must have our attention.”
