Tax Evasion Suspects Use Bitcoin Ordinals and BRC-20 Tokens

According to Odaily, Chainalysis has detected that tax evaders are increasingly using digital methods like Bitcoin Ordinals and BRC-20 tokens to conceal assets from tax authorities. Recently, Italian authorities uncovered a tax evasion case involving an individual accused of using Bitcoin Ordinals and BRC-20 token standards to acquire and hide €1 million, approximately $1.1 million, in undeclared capital gains. The suspect allegedly created tokens using the Ordinals protocol and BRC-20 standard, then listed them on the market, selling them for several times their original cost. The profits were converted back into Bitcoin and returned to the suspect's main wallet, with the gains continually reinvested into new inscriptions. Chainalysis noted that using cryptocurrencies for tax evasion has a critical flaw, as the inherent transparency of blockchain leaves a permanent and immutable record.