Chainalysis: Tax Evaders Are Using "New Digital Assets" to Evade Taxes

Odaily Odaily reports that, according to Chainalysis monitoring, tax evaders are turning to digital methods such as Bitcoin Ordinals and BRC-20 tokens in an attempt to conceal assets from tax authorities.

Italian authorities recently cracked a tax evasion case where an individual allegedly used Bitcoin Ordinals and the BRC-20 token standard to generate and hide 1 million euros (approximately $1.1 million) in undeclared capital gains. The suspect used the Ordinals protocol and BRC-20 standard to create tokens, then sent them and listed them on exchanges. The assets were sold for several times their original cost, with the profits being sent back to their primary wallet in the form of Bitcoin. They continuously reinvested the proceeds 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 record. (Cointelegraph)