Blockchain investigator ZachXBT has recently voiced concerns over what he perceives as excessive and intrusive methods employed by the Criminal Investigation Unit (CIU) of the U.S. Internal Revenue Service (IRS) in their efforts to solicit his help with blockchain-related investigations.
ZachXBT, known for his expertise in tracing blockchain transactions, took to X on March 6 to share his experiences of being pursued by the IRS for his knowledge and skills.
Despite his general willingness to aid victims and law enforcement, ZachXBT feels that the IRS’s tactics have infringed upon his personal boundaries.
ZachXBT’s grievances include unannounced visits to former residences, unsolicited emails to personal accounts utilizing private information, and physical mail, despite his public availability through more conventional contact methods.
Among the evidence he provided was an email from an IRS special agent, who lauded ZachXBT for his “impressive work,” particularly his adeptness with blockchain tracing tools.
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The agent, acknowledging their own limitations in understanding blockchain, sought ZachXBT’s guidance on making significant contributions to the field.
However, ZachXBT has criticized the IRS’s approach as showing “blatant disregard for any professionalism,” a stance he took after declining to support investors of the Complex (SIMPLE) memecoin following its unexpected collapse on April 4.
He expressed a preference for aiding genuine victims over those who speculate on high-risk, unproven digital assets.
The IRS, meanwhile, continues to enhance its engagement with key figures and organizations in the blockchain tracing sector.
A notable partnership highlighted by the agency is with Chainalysis, a leading blockchain analytics company.
In May 2023, IRS-CI Chief Jim Lee emphasized the critical role of such collaborations, stating that the fight against cryptocurrency-related crime would be “impossible” without the advanced tools and infrastructure provided by these partnerships.
Lee also noted that, thanks to these efforts, the IRS-CI has confiscated an estimated $10 billion in cryptocurrency since it started probing a wide range of digital asset-related criminal activities, showcasing the significant impact and importance of these investigative endeavors.
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