Ethereum Millionaires Might Be Attracting Attention From Regulators

Just recently has been covering the ongoing case between the U.S. tax agency, the IRS and its dealings with the cryptocurrency exchange Coinbase. However, bitcoiners are not the only ones being observed by taxation officials as regulators are growing concerned about ethereum traders this year accumulating millions of dollars in gains in a pseudo-anonymous manner.

Also read: The IRS Narrows Data Request to Coinbase Users that Transacted For $20,000

ETH Trader Tells the Public He Netted Over $200 Million in Gains This Year

According to a recent report from Bloomberg, a cryptocurrency trader started bragging online that he made a cool $283 million by investing $55 million into ethereum. The pseudo-anonymous trader revealed his ETH address showing the public his 413 percent profit accumulated this year.     

“I get many private messages asking how much ether I have,” explains the ethereum trader. “One of the cool things about Ethereum is that all wallets around the world are transparent and open for everyone to see. And this is my wallet’s savings.”

Ethereum Millionaires Might Be Attracting Attention From Regulators
The bragging ethereum trader’s wallet.

A New Millionaires Club

The trader is not the only one who has made considerable gains this year as ethereum tokens were roughly $10 per ETH back in January and now are priced at $190. The cryptocurrency also hit an all-time high of $425 per ETH just a month and a half ago. According to Bloomberg’s statistics, there are a lot of individuals who invested in ethereum and became millionaires in just a short period of time. The publication and the financial news outlet Zerohedge suggests that “nobody knows who to tax” when it comes to these profits. 

Ethereum Millionaires Might Be Attracting Attention From Regulators

There are a few well-known figures who’ve detailed publicly they have made quite a bit of profit off the cryptocurrency’s rise in value. For instance Michael Novogratz, a former executive from Fortress Investment Group, says he’s made 10 percent of his net worth by investing in ethereum in just one month. The news publication estimates that Novogratz made $90 million investing in the cryptocurrency according to the firm’s Billionaires Index. Joseph Lubin, the founder of Consensys, is also estimated to be worth millions in ether according to sources familiar with the matter. Further, the inventor of ethereum Vitalik Buterin explained in a forum last month that his ETH holdings are worth roughly $117 million.

Publicly Announcing You’ve Made Millions in Gains Investing in Cryptocurrency May Not Be the Brightest Move

Ethereum Millionaires Might Be Attracting Attention From RegulatorsThe publication Zerohedge details that regulators are likely watching individuals make significant gains off of ethereum and various other cryptocurrencies. The U.S. Internal Revenue Service (IRS) has been investigating tax evaders using cryptocurrency for quite some time but just recently announced they would be focusing on looking for higher volume players. The tax agency will seek records from Coinbase and likely many other U.S. exchanges that show “at least the equivalent of $20,000 in any one transaction type (buy, sell, send, or receive) in any one year.”

Curating a system that tries to monitor pseudo-anonymous individuals making large gains with cryptocurrencies will be a significant task for the IRS. Even the notorious whistleblower Edward Snowden stated last year that cryptocurrencies might provoke large tax protests in the future. However, when ethereum traders and investment types detail they are making millions in gains on public forums online, the job may not be so difficult for tax authorities worldwide.

What do you think about ethereum traders and investors telling the public about their cryptocurrency gains this year? Let us know what you think in the comments below.

Images via Shutterstock, Pixabay, and Etherscan.

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  • Fun Diplomat Channel

    Crypto Haven for investors in Japan. Here it was taxed as asset.the way it works is when you sell and liquidate into Fiat the tax would automatically be applied. But recently all crypto currency are tax free. Keep in mind we in Japan are paying premium cimpared to any other nation. So if BTC $2500 we be buying at $ 3000 if ETH is at $200 we be buying at around $280. All fair game in my opinion. We used to be tax on top of the already premium rate.

  • Christopher Iden

    never share your passwords secret keys and never never talk about your millions of dollars…

  • Dasikin

    Where i can make a bitcoin,
    Please give me access situs to make bitcoin,

    • suman som

      how I can exchange ethuriam coin please send ethuriam exchanger link .my

  • Mr Stones

    F*ck taxes, f*ck the government. Fair tax system or revolt.

    • Ex-msft

      so what would be fair? If you put say $10k into eth or btc, converted back to dollars and now its $110k, shouldn’t that count as regular currency trading, so you owe quarterly taxes on that 100k gain?

      • Mr Stones

        No, capital gains taxes are regressive. The “Fair” tax is a straight consumption tax; only on purchases, nothing else. Purchasing XRP or BTC is just currency conversion, there is only gain if the value increases, so no taxes. If I purchase a house or car with it? Tax on the purchase.

    • nasir man manuty

      You are the Very Best Fucker all the year…full support on you…

  • nasir man manuty

    IRS and Tax agency go and Flying a Kites…Do they understand what’s Decentralize Bank…?
    Fiat currency & Crypto currency both totally are different system don’t try to manipulate your Bullshit Ideology.

    • disqus_xct1ISPpDI

      Sorry but unless you live on Mars, they will get you one way or another unless you just sit on the coins and not convert them to any asset. Remember, they are the ones that got Al Capone..not the FBI.

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