IRS Crypto Surveillance Plan Raises Concerns Over Mass Data Collection and Seizures
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IRS proposal to increase cryptocurrency surveillance could enable DOJ to seize crypto at an unprecedented rate through administrative forfeiture.
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From 2014-2022, FBI seized $427M in crypto and IRS seized $3.8B from 2018-21, so claim that govt struggles to seize crypto seems unfounded.
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Massive govt databases on crypto use could create targets for abuse, whether from DOJ seeking more confiscations, IRS pursuing more audits, or hackers.
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Misunderstandings about crypto have fueled crackdown calls before, so suspicions enabling seizures may arise even absent crimes.
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If IRS proposal moves forward, crypto users must watch how data is used, as DOJ may "suddenly" find new arenas for confiscation.