Chainalysis: Tax evaders are beginning to use Bitcoin Ordinals and BRC-20 tokens to hide wealth

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Deep Tide TechFlow News, May 21 — According to a report by the blockchain analysis platform Chainalysis, the Foggia Economic and Financial Police Department in Italy recently uncovered a tax evasion case. The suspects are believed to have used Bitcoin Ordinals protocol and BRC-20 token standards to create and resell tokens, hiding approximately $1.1 million (1 million euros) in capital gains on the blockchain, with the profits continuously reinvested into new inscriptions.

Chainalysis pointed out that although such emerging technological methods may seem covert, the inherent transparency of blockchain leaves permanent, tamper-proof transaction records. Blockchain intelligence can effectively track tax evasion by reconstructing financial networks and cross-referencing exchange reporting data. The organization warns that as new categories of digital assets continue to emerge, the gap between actual on-chain wealth and declared tax status will become a key focus for global law enforcement agencies.

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