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Cryptocurrency Fraud

The world of digital currencies has become dramatically more prevalent in the last several years, and with its growth a new channel for fraud has come to surface. Whether through Ponzi schemes, market manipulation, general tax avoidance, money laundering, or other scams, fraudsters have taken full advantage of a variety of cryptocurrencies based on its volatility and lack of regulatory oversight.

Despite cryptocurrency being a “new technology,” the U.S. government has made clear that it will not allow cryptocurrency users to fly under the radar. For tax purposes, the Internal Revenue Service has recently made clear that digital currencies should be treated as property.

Individuals who are aware of individuals leveraging cryptocurrencies to engage in fraudulent activities can come forward through a variety of whistleblower programs, including the IRS and CFTC, in order to provide the government with information of wrongdoing while qualifying for a reward.