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

Odaily reported that 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 in which an individual allegedly used Bitcoin Ordinals and the BRC-20 token standard to generate and conceal 1 million euros (approximately $1.1 million) in undeclared capital gains. The suspect used the Ordinals protocol and the BRC-20 standard to create tokens, then sent them and listed them on the market. The assets were sold at several times their original cost. The profits were transferred back to the main wallet in Bitcoin, and the proceeds were continuously reinvested in 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)