The move could help bring more clarity and stability to the crypto ecosystem
An experienced US government official who served as the IRS Criminal Investigations team chief for three years has joined the cryptocurrency analytics firm Chainalysis.
Chainalysis announced on April 8 that Jim Lee, a former IRS agent, has been appointed as the global head of capacity building. He will focus on “helping international agencies develop solutions against cryptocurrency-based crime.”
Lee, who previously worked as the chief of criminal investigations at the IRS, sometimes teamed up with Chainalysis to seize cryptocurrencies used for illegal activities. In December 2023, he expressed concerns that edigital assets could be used to finance terrorist activities and ransomware attacks. Still, he also acknowledged that the technology is mostly used for “legitimate purposes.”
“Crypto has brought greater transparency and efficiency to finance, and we’re still in the early innings,” Lee stated. “I believe that with time, this technology can continue to give people more control over their money and heighten financial inclusion around the world. However, criminals of all stripes have also been quick to adopt cryptocurrency.”
Lee says he joined Chainalysis because the company is “[leading] the way from the private sector in making cryptocurrency safe.” He cited its work with US authorities in criminal crypto cases, including ransomware attacks and transaction tracing for tax reporting.
After the former leader of the IRS criminal investigations team announced his retirement, the agency announced in March that Guy Ficco was stepping into his role on April 1.
Lee joins Chainalysis amid concerns expressed by US lawmakers, including Senator Elizabeth Warren, about former policymakers moving into the digital asset industry after leaving government. Senator Warren believes that such officials could be using their experience in public service to “audition” for private sector positions in the crypto industry.
