Chainalysis: Tax evaders are using "new digital assets" to evade taxes

Odaily Planet Daily News According to Chainalysis monitoring, tax evaders are turning to digital methods such as Bitcoin Ordinals and BRC-20 tokens in an attempt to hide assets from tax authorities.

Italian authorities recently cracked a tax evasion case involving an individual suspected of using Bitcoin Ordinals and the BRC-20 token standard to generate and conceal unrealized capital gains of 1 million euros, approximately $1.1 million. The suspect used the Ordinals protocol and the BRC-20 standard to create tokens, which were then sent and listed on the market. The assets were sold at several times their original cost, with the profits transferred back to their main wallet in the form of Bitcoin, and the proceeds were continuously reinvested into new inscriptions.

Chainalysis stated that using cryptocurrency for tax evasion has a fatal flaw: the inherent transparency of the blockchain leaves a permanent and immutable trail. (cointelegraph)