BIGGEST Crypto Trial of the Century John McAfee VS USA
McAfee Founder Accused of Evading Takes while allegedly earning millions Interesting variable in the case is McAfee is facing criminal charges and not just civil. Hopefully this trial will clarify some of unclear or nonexistent tax laws regarding crypto.
There is a fine line between legalities when dealing with cryptocurrency regulations. Thus far many regulations have gone ignored but as the market gains steam and we see billions of dollars in cryptocurrency being moved around by whales you are going to see more and more cases like this popping up.
Especially since several major corporations are partnering up and speaking out over the alleged misuse of cryptocurrency platforms to hide illegitimate income.
It has only been since 2014 that cryptocurrency has been classified as "property" and it is obvious that many wealthy business owners have used the platforms to their benefit.
McAfee is being accused of being involved in the "Pump and Dump" type scheme. From an outsiders perspective a P&D is where wealthy investors will pick a particular cryptocurrency stock and buy heavily into it and send it skyrocketing. Outside investors not investing nearly as much money into the stock will notice the increase and take the bait. They will in turn help the stock inflate and just as it begins to plateau...the original heavy investors will dump the stock, causing the bottom to fall out and many lose their investments to make the wealthy....obtain more wealth. Prosecutors will dive into his case and certainly will discuss the yearly tax reporting regulations and requirements in depth, to get to the bottom of the alleged involvement.
Bitcoin by law is required to turn the information over to the Internal Revenue Service [IRS] when fraud or tax evasion is reported so in the McAfee case, we can only assume he will be required to show all of his earnings on the platform. A similar case took place with Coinbase.
It seems as if the window to hide extra earnings... Has begun to close. At least for Mr. McAfee.
Related news https://news.yahoo.com/john-mcafee-indicted-alleged-cryptocurrency-171618294.html