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Crypto Crackdown Bolstered by Winning Foreign Account Playbook

Aug. 24, 2021, 8:45 AM

The federal government is racking up wins in cases tied to unreported foreign bank accounts after years of working to track them down, establishing a legal framework that is expected to help the pursuit of cryptocurrency held abroad.

The recent court victories—including a judicial recommendation to repatriate more than $18.2 million—are tied to a requirement that individuals with overseas accounts holding more than $10,000 report them to the government annually.

The penalty for a willful failure to report foreign bank and financial accounts through filings known as “FBARs” is up to 50% of the value of the account’s ...