A report by Chainalysis reveals that tax evaders are increasingly using Bitcoin Ordinals and BRC-20 tokens to hide earnings. The blockchain analytics firm highlights a case in Italy where a suspect allegedly concealed 1 million euros in undeclared gains using these technologies. The suspect reportedly created tokens via the Ordinals protocol, listed them on marketplaces, and transferred proceeds back to a primary Bitcoin wallet, reinvesting earnings into new inscriptions.
Chainalysis warns that as digital assets become more mainstream, they are being exploited to evade tax authorities. The report underscores the challenge for tax agencies to keep pace with evolving blockchain technologies, which can obscure financial activities. Despite this, the traceability of blockchain networks remains a key advantage for investigators, enabling them to reconstruct financial networks and enforce compliance.
Tax Evaders Use Bitcoin Ordinals and BRC-20 Tokens to Conceal Wealth
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