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Ordinals becomes a new tool for tax evasion, can regulators keep up?
Recently, the Economic and Financial Police Force in Foggia, Italy, uncovered a tax evasion case. The individuals involved are suspected of using the Bitcoin Ordinals protocol and the BRC-20 token standard to conceal 1 million euros (about $1.1 million) in unreported capital gains.
The investigation shows that the suspects used this technology to create tokens, then sold them in market transactions at several times their initial cost, and sent the profits back to their main wallets in Bitcoin for round-trip investment.