The Internal Revenue Service Criminal Investigation division (IRS-CI) faces scrutiny following a US Treasury Inspector General report uncovering inconsistent adherence to cryptocurrency seizure guidelines. Audits between December 2023 and January 2025 identified repeated procedural failures in managing confiscated digital assets.
The report presses for urgent implementation of comprehensive training programs to ensure IRS-CI personnel comply with seizure protocols and improve asset tracking systems. These shortcomings threaten both transparency standards and the security of national digital asset reserves.
This criticism emerges as the US government retains one of the world’s largest Bitcoin stockpiles—approximately 200,000 BTC worth over $21 billion—primarily accumulated through high-profile criminal seizures.
The Inspector General emphasized that strengthened communication channels and updated regulatory frameworks are critical to enhance accountability in cryptocurrency seizure operations amid growing digital asset adoption.