Chainalysis Uncovers $1.1 Million Tax Evasion Scheme Using Bitcoin Ordinals

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According to Chainalysis, a suspect in Italy allegedly used Bitcoin Ordinals and BRC-20 tokens to conceal $1.1 million in taxable gains on May 21, 2026. The suspect created BRC-20 tokens, sold them for profit, and then converted the earnings back into Bitcoin to hide the transaction trail. Investigators believe the layered token ecosystem made tracking taxable income significantly harder, highlighting emerging regulatory concerns around Bitcoin's expanding token capabilities.
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