Topic: Some guy made 200 million from ETH (Read 3632 times)
There are few incoming transactions of '199,999.99898534 Ether'. Is it possible that this can be an exchange address?
If you can't prove your entry points and you cash out.. aren't you fucked? They would keep the money and claim it's not clear where you got it from.
Is it possible that the authorities could harass you because you are not able to give a detailed information on what all investments you made and how you made those amount of money,since i am not a specialist when it comes to these things i am not sure about it. 
You should be able to prove your entry points although I suppose with Eth it gets harder. I would recommend talking to an accountant ha Also, remember to keep good records because it's easier to keep up with record-keeping practices than it is to make up for a lack of records in your work. Cheers!
So what happens if you trade on Cryptsy, Mintpal, or any other altcoin exchange that is now dead? How do you prove entry records on these altcoins in and out if the exchanges are dead?
Even if you were lucky to save your trades, what does it prove? The addresses could be anything. If there's no way to log in into the account and see that the addresses belong to the exchanges, how do you prove this to the IRS or whatever?
Any coin with a blockchain explorer will be easy to show your entry point. You don't even have to prove the actual transaction. Just note that wallet address(es) as yours and you're good.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
Why would you report you have any bitcoin? just wait until you cash out and pay the capital gains tax?
See my comments here on AML law.
Then see the status of the lawsuit Coinbase vs the IRS (THEY REQUESTED LOTS OF RECORDS)
If they make you get verified you are watched by the govt's etc.
i told you all here in 2013 regulations were coming.. not long after USA & CAN announced tax laws for crypto coins and later an SEC fraud alert about them too.
Many since joined in.. the basic idea is if you don't claim your Exchange profits you are in violation of tax law and could face severe consequences.
Heard of Al Capone ?
He was considered untouchable.. the IRS took care of that.
I'd rather pick a fight with a Hells Angel in a bar before fucking with the tax man..
And yeah i have too LOL
When the tax man says jump you say how high.
I never bought any bitcoins, so I never needed to register on these exchanges that require you to give them your data. I have only used altcoin exchanges, some of them which are dead. I have no idea about tax laws, I just got on this thing because It was interesting, started making some BTC and holded them, i've never sold anything.
I never intended to break any laws, and I will not. Whenever I cash out I will pay all taxes, that is not the problem.
The problem is the intrinsic mess that is getting track of all bitcoin transactions and report everything, it's insanity. They should make it easy for holders and not scare them into potential counterfeits (as in when you cash out, your bank account gets frozen), otherwise no one is going to report shit on these countries, so it's on their interest to make it easy. It should be capital gains period.
http://www.zerohedge.com/news/2017-07-10/one-trader-made-200m-trading-ethereumand-nobody-knows-who-tax
The taxmen are getting nervous with people holding these massive amounts and not being able to tax it.
Well, he didn't sold afaik so it's obvious now he holds less after the crash but he has a fuckton.
Some guy makes a point:
As he can't prove his entry point, the anti terrorisme act goes in effect, confiscation and guantanamo
Tax evasion as he didn't declare his positions... He's fucked
If you can't prove your entry points and you cash out.. aren't you fucked? They would keep the money and claim it's not clear where you got it from.
If you dont have money its a problem and yet now you have lots of money its still a problem and having that kind of enourmous amounts will really give you sleepless nights on how you would cash out knowing that Anyone could able to check it out your own wallet history and if theres a single transaction specially on cashouting it will really made some actions for you to be taxed. The taxmen are getting nervous with people holding these massive amounts and not being able to tax it.
Well, he didn't sold afaik so it's obvious now he holds less after the crash but he has a fuckton.
Some guy makes a point:
Quote
As he can't prove his entry point, the anti terrorisme act goes in effect, confiscation and guantanamo
Tax evasion as he didn't declare his positions... He's fucked
If you can't prove your entry points and you cash out.. aren't you fucked? They would keep the money and claim it's not clear where you got it from.
One guy made 200 million from ETH.
The other 96% just lost money..
You always hear one story.
The other 96% just lost money..
You always hear one story.
haha,, this is actually what i came back to this topic to add to my previous comment here. glad i read other comments to see i am not the only person thinking this
people always forget that there are always two sides in a trade, one side is buying it over priced and once side is selling it overprice to the other sucker.
What's stopping someone like that from just applying for citizenship in a tax haven?
If you have that kind of money, it shouldn't be that hard to try and find some sort of loophole together with a team of accountants.
There aren't really any rules regarding taxation on crypto assets in many countries.If you liquidate the amount,you can raise red flags with the bank but ofcourse if you have ways to show the income is legit,they'll allow it.If you have that kind of money, it shouldn't be that hard to try and find some sort of loophole together with a team of accountants.
Some countries also have some form of fiscal amnesty, you basically pay a large fine and are able to 'legalize' your money.
That is 70/30 ratio.70% amount is seized by the government and 30% is for you to keep,atleast in my country if found illegal not-taxed income.1.3% capital gains tax!! What! I pay 40% FFS! I'm moving to your country to cash out. Where do you live?
Go to Dubai,tax-free. 
Any coin with a blockchain explorer will be easy to show your entry point. You don't even have to prove the actual transaction. Just note that wallet address(es) as yours and you're good.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
1.3% capital gains tax!! What! I pay 40% FFS! I'm moving to your country to cash out. Where do you live?
What's stopping someone like that from just applying for citizenship in a tax haven?
Depends on the country. Some let you go, some still demand taxs. Check with your country's tax code.
Some countries also have some form of fiscal amnesty, you basically pay a large fine and are able to 'legalize' your money.
Yes. Spain. The fine for tax fraud is trivial from the profit you gain from that fraud.
What's stopping someone like that from just applying for citizenship in a tax haven?
If you have that kind of money, it shouldn't be that hard to try and find some sort of loophole together with a team of accountants.
Some countries also have some form of fiscal amnesty, you basically pay a large fine and are able to 'legalize' your money.
If you have that kind of money, it shouldn't be that hard to try and find some sort of loophole together with a team of accountants.
Some countries also have some form of fiscal amnesty, you basically pay a large fine and are able to 'legalize' your money.
One guy made 200 million from ETH.
The other 96% just lost money..
You always hear one story.
The other 96% just lost money..
You always hear one story.
Theoretically, the government can make laws requiring you to pay taxes on the income of crypto currencies, but it will be very difficult to do. They can't force you to change coins, but in order to accept payments in the crypto currency need to admit it and lose control over the economy. This government is not ready.
The government response is to make the laws broader rather than less specific. Stock trading and currency speculation are often classified as 'gambling' (because that's essentially what it is) and the volatility, IE, the amount of gains one can get is irrelevant for that tax code, you pay the same tax over it.
The only thing that does complicate things is the activities that can be done with cryptocurrencies. Intensively mining coins is considered 'income' rather than 'capital' but how does that work when people start selling their ETH gas, or start getting large dividends from proof of stake coins? I'd consider those examples dividends from capital, therefore capital.
The only thing that does complicate things is the activities that can be done with cryptocurrencies. Intensively mining coins is considered 'income' rather than 'capital' but how does that work when people start selling their ETH gas, or start getting large dividends from proof of stake coins? I'd consider those examples dividends from capital, therefore capital.
I think in a few years to come, the possibility of many bodies part of the tax will be aware of the large number of changes in technology that appears to be the more advanced so that they will create a policy that applies but may be stuck in the policy would not work because they have to keep the innovation so that we should be aware of and recognize the tax effect. Since the number of some 200 million people have of ETH
That's why anonymous coins suck, you won't ever be able to use them for anything other than petty purchases without triggering large fines.
If you held 200 million, wouldn't you just gladly pay off the relatively low capital gains tax just to make the entire thing legit? You'd be settled for life.
If you held 200 million, wouldn't you just gladly pay off the relatively low capital gains tax just to make the entire thing legit? You'd be settled for life.
Relatively low cgt. Its like 50 percent on that sum.
You should be able to prove your entry points although I suppose with Eth it gets harder. I would recommend talking to an accountant ha Also, remember to keep good records because it's easier to keep up with record-keeping practices than it is to make up for a lack of records in your work. Cheers!
So what happens if you trade on Cryptsy, Mintpal, or any other altcoin exchange that is now dead? How do you prove entry records on these altcoins in and out if the exchanges are dead?
Even if you were lucky to save your trades, what does it prove? The addresses could be anything. If there's no way to log in into the account and see that the addresses belong to the exchanges, how do you prove this to the IRS or whatever?
Any coin with a blockchain explorer will be easy to show your entry point. You don't even have to prove the actual transaction. Just note that wallet address(es) as yours and you're good.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
In my country the tax agency uses January 1st as the price date. If I hold 20 bitcoin then I only have to say I own $998 x 20 =$19.960 worth of Bitcoin for 2017.
If Bitcoin suddenly becomes worth ten times as much on January 1st of 2018 then you note you still own those 20 bitcoins, now worth $9.980 =$190.960 and you pay the tax on it. My country's capital gains tax is absurdly low so I pay 1.3% ($248), but even if it were 15% or 20% I'd swallow and pay it, it means all the rest is gravy to do whatever you want with it.
Why would you report you have any bitcoin? just wait until you cash out and pay the capital gains tax?
See my comments here on AML law.
Then see the status of the lawsuit Coinbase vs the IRS (THEY REQUESTED LOTS OF RECORDS)
If they make you get verified you are watched by the govt's etc.
i told you all here in 2013 regulations were coming.. not long after USA & CAN announced tax laws for crypto coins and later an SEC fraud alert about them too.
Many since joined in.. the basic idea is if you don't claim your Exchange profits you are in violation of tax law and could face severe consequences.
Heard of Al Capone ?
He was considered untouchable.. the IRS took care of that.
I'd rather pick a fight with a Hells Angel in a bar before fucking with the tax man..
And yeah i have too LOL
When the tax man says jump you say how high.
You convert FIAT you pay taxes. Holding crypto is not very a thing, you never have your coin on your wallet, you just have the private key wich allows to contral that coins. You lose your wallet/private keys the coins are not deleted, they become out of control.
Your bank is filing all your bank accounts to the IRS though. They know exactly how much you own. So in order to dodge the tax you'd have to somehow find a way to cash out in either an anonymous account or into cash. Both of which may be more expensive than simply paying the tax.
Yeah but how are you supposed to report trades that are lost within dead exchanges? a lot of people has this problem, and I never saw a clear answer. Everyone that traded on Mintpal for instance, and lost all their trading history... how do you prove the entry points of these altcoin trades?
Whole thing is a mess.
Only x4 of his capital. I have known that there are many people who can earn a greater amount of bitcoin than this guy. Remember NEM? If he had invested his money in NEM, he would have earned billions of dollars right now
Your bank is filing all your bank accounts to the IRS though. They know exactly how much you own. So in order to dodge the tax you'd have to somehow find a way to cash out in either an anonymous account or into cash. Both of which may be more expensive than simply paying the tax.
http://www.zerohedge.com/news/2017-07-10/one-trader-made-200m-trading-ethereumand-nobody-knows-who-tax
The taxmen are getting nervous with people holding these massive amounts and not being able to tax it.
Well, he didn't sold afaik so it's obvious now he holds less after the crash but he has a fuckton.
Some guy makes a point:
As he can't prove his entry point, the anti terrorisme act goes in effect, confiscation and guantanamo
Tax evasion as he didn't declare his positions... He's fucked
If you can't prove your entry points and you cash out.. aren't you fucked? They would keep the money and claim it's not clear where you got it from.
The taxmen are getting nervous with people holding these massive amounts and not being able to tax it.
Well, he didn't sold afaik so it's obvious now he holds less after the crash but he has a fuckton.
Some guy makes a point:
Quote
As he can't prove his entry point, the anti terrorisme act goes in effect, confiscation and guantanamo
Tax evasion as he didn't declare his positions... He's fucked
If you can't prove your entry points and you cash out.. aren't you fucked? They would keep the money and claim it's not clear where you got it from.
It is true that to whom he needs to pay but what in the hell he needs to pay somebody though, is it trading crypto currency with an anonymous identity helps you to dodge this tax authorities?
unless he reveals himself/herself in a live T.V show that he deposited $50 million then profited $200, there is no concrete law as of today with this kind of taxing situations I think.
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