IRS trains Ukraine to track Russian crypto activity

The revenue collectors will provide advanced training for Ukrainian officials to tackle illegal transactions from Russian oligarchs attempting to conceal crypto assets.

The US Internal Revenue Service of Criminal Investigations (IRS-CI) and blockchain analytics firm Chainalysis are working with the Ukrainian officials to pursue Russian crypto assets.

The statutory body has joined private sector partners to deliver “blockchain analysis tools and cyber training to Ukrainian law enforcement agencies”.

As part of the partnership, the IRS provided the country with licenses to use Chainalysis’s cryptocurrency investigations platform, Reactor.

Around 50 Ukrainian law enforcement officers participated in virtual training last month, including The Cyber Police Department of the National Police of Ukraine, the Economic Security Bureau of Ukraine, the Department of Cyber and Information Security of the Security Service of Ukraine, and the Prosecutor General’s Office of Ukraine.

Creating leads

The aim of the training sessions is to help Ukrainian authorities learn how to trace cryptocurrency transactions and develop leads.

There will also be an advanced in-person blockchain analysis program in Frankfurt, Germany, aimed to target “financial networks” used by sanctioned Russian oligarchs who “attempt to conceal their assets.”

IRS-CI Chief Jim Lee said: “Global financial crimes often consist of complex webs of offshore holdings and anonymous transactions.

“The training helps participants to hone their digital investigative skills to trace the source of blockchain funds and unmask cryptocurrency transactions with cryptocurrency forensic tools.”

Russia's use of cryptocurrency

Since Russia invaded Ukraine, both countries have used cryptocurrencies for a variety of reasons, but often to evade sanctions, fuel war efforts, and support humanitarian aid.

Ukraine has received a multitude of crypto donations during the war, receiving over $50m worth from organizations and individuals in a bid to help the country.

Additionally, around 100 pro-Russian groups have conducted crowdfunding campaigns soliciting cryptocurrency donations to raise Bitcoin and several other cryptocurrencies to support paramilitary operations against Ukraine.

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Written by Isabella Aslam

Reporter

Isabella is an experienced writer in B2B and B2C journalism. Alongside crypto, Isabella writes and discusses the topics of relationships and psychology. Isabella holds a first-class degree in music journalism and often interviews electronic artists and DJs.

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