💸 What if the US Government is Grabbing Billions from Crypto?
The US government’s actions are clear: it’s all about leveraging crypto for financial gain.
📉 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.
🚨 Terra Labs’ 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.
💰 Seized Assets: A Goldmine
The US Marshals Service isn’t 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.
⚖️ Roger Ver’s 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, Ver’s legal saga continues as he awaits a decision on his extradition to the US.
🛡️ 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.
🇺🇸 Crypto in the 2024 Election
Crypto is making a splash in the 2024 US Presidential election. Trump’s campaign started accepting Bitcoin and Ether donations on May 28, a first for a major party candidate. Meanwhile, Biden’s campaign is also in talks to accept crypto contributions through Coinbase Commerce, mirroring Trump’s initiative.
