IRS Warns Crypto Holders About Fake Letters

Crypto holders are being warned about fake letters from the IRS that aim to steal digital assets and personal data. These counterfeit letters may direct recipients to register for a non-existent 'Digital Asset Compliance Portal.' The IRS urges taxpayers not to scan QR codes in suspicious mail or take calls demanding payment.

The scheme is unusual as it uses physical mail, unlike the phishing emails and fake websites that have plagued the crypto world. Recent changes require taxpayers to disclose crypto activity on their returns, making legitimate correspondence more common.

Crypto theft remains a growing problem, with security firm Blockaid reporting over $1 billion lost to hacks during the first half of 2026, calling it 'the most-hacked half-year on record' by number of incidents. Physical crimes targeting crypto holders are also rising, with Certik reporting more than 50 such attacks worldwide in the first half of the year.