đž What if the US Government is Grabbing Billions from Crypto?
The US governmentâs actions are clear: itâs all about leveraging crypto for financial gain.
đ The FTX Fallout
Remember the dramatic collapse of FTX in late 2022? Initially, the IRS demanded a whopping $24 billion in back taxes. However, a recent settlement saw FTX coughing up $200 million upfront, with a potential $685 million payout if funds allow post-creditors.
đš Terra Labsâ Algorithmic Oops
Terraform Labs, the brains behind the failed algorithmic stablecoin TerraUSD (UST), faced the music with the SEC. Their penalty? A staggering $4.5 billion. This includes profits disgorgement, prejudgment interest, and civil penalties.
đ° Seized Assets: A Goldmine
The US Marshals Service isnât sitting idle. In April 2024, they sold off $2 billion worth of Bitcoin tied to the notorious Silk Road marketplace. These asset sales not only fill the government's coffers but also impact market dynamics.
âïž Roger Verâs Tax Drama
Early Bitcoin evangelist Roger Ver is in hot water. The IRS claims he owes $50 million over how he reported his Bitcoin in 2014. Arrested in Spain on separate tax evasion charges, Verâs legal saga continues as he awaits a decision on his extradition to the US.
đĄïž More than Just Fines
The IRS treats cryptocurrency as property. This means capital gains taxes apply on profits from selling crypto. Beyond the high-profile cases, everyday crypto transactions are also under the taxman's watchful eye.
đșđž Crypto in the 2024 Election
Crypto is making a splash in the 2024 US Presidential election. Trumpâs campaign started accepting Bitcoin and Ether donations on May 28, a first for a major party candidate. Meanwhile, Bidenâs campaign is also in talks to accept crypto contributions through Coinbase Commerce, mirroring Trumpâs initiative.