Today Bitcoin drops below the $70,000 Level to end the week Sam bankman freed Appeals his fraud conviction and the Criminal investigation Chief at the IRS Breaks down what you need to know when It comes to crypto and filing your taxes As the deadline Looms welcome to cbc's crypto world I'm Jordan Smith digital currencies are back In the red to close out the week Bitcoin Dipped just under 1% over the past 24 Hours after testing the $72,000 level a Little more than a day ago ether fell Right around 2% back to the $3,400 mark And salana fell 3.5% back below $170 looking out across the week we got Some economic data that pushed back on Expectations that we would see a rate Cut from the Federal Reserve in the Coming weeks consumer Prices rose more Than expected in March while wholesale Prices Rose less than expected that data Left Wall Street concerned about Lingering inflation and that brought Down the Dow in the S&P crypto though Seems unfazed over the past 7 Days Bitcoin's Risen 2 and 1 12% while Ethereum's risen more than 3% salana is An outlier falling more than 4 and a Half% now looking ahead the market is Also preparing for the Bitcoin having Which could come sometime in the next Week that won't mean much for investors In the near- term in the hours after the
Cut to mining rewards actually happens But it's expected to move markets higher Longer term thanks to tighter Supply the Bitcoin miners though they will see an Impact more directly of course as mining Rewards will get slashed looking at some Of the publicly traded miners they are Mixed over the past week Riot and Marathon are in the red while clean Spark is moving higher as of noon Eastern now other things to look out for Next week well economic indicators like Retail sales plus the Federal Reserves Beige book which will give more detail Into how the FED sees economic Conditions across its Regional Banks all right let's talk about the top Stories Sam bakman freed filed an appeal For his fraud conviction and 25-year Prison and sentence no surprise here Lawyers for the FTX founder filed the Notice of appeal yesterday 2 weeks after The 32-year-old was sentenced in US District Court in Manhattan in ordered To pay 11 billion in forfeiture for the Massive fraud at the crypto exchange and Its sister hedge fund Alam research the Appeal will be heard in the second District US court of appeals in Manhattan typically the odds of criminal Defendants having their convictions Overturned in federal court is pretty Low winning reversals in fewer than 10% Of appeals if SP SPF loses he would have
To petition the Supreme Court to take The case next up Hong Kong could approve Spot Bitcoin and ether exchange traded Funds as soon as Monday according to Bloomberg a partnership between bosera Asset management and hashkey capital is Reportedly among the issuers expected to Get the green light for the ETFs which Invests directly into Bitcoin and ether We told you earlier this week that Regulators reportedly sped up the Process for approvals to bring the ETFs To Market much faster than the industry Expected Reuters reported that at least Four Chinese and Hong Kong asset Managers have submitted applications for These new funds all right let's talk About taxes for our main story Tax Day In the US is on Monday April 15th and if You haven't filed your individual tax Return yet you're probably scrambling to Get that done over the weekend the IRS Is of course also hard at work tracking Down tax crimes and while at the chain Analysis links conference in New York City this week crypto World spoke with Guy FICO the criminal investigation Chief at the agency he says the asset Class and cryptool Link tax crimes might Be growing but the IRS is prepared so Crypto and and virtual currencies have Been part of uh investigations that IRS Investigation has conducted for years And it has been predominantly uh a part
Of other larger frauds so there could be Uh whether it was scams embezzlements Money laundering crypto was has been Utilized to advance those frauds what We're seeing more of now and More in our Current inventory is more of the pure Crypto tax crimes and these would be Title 26 which is federal income tax Violations uh Specifically involving the crypto and This could be uh purely not reporting Income generated from crypto sales it Could be um uh hiding the true basis or Or shielding the true basis in crypto so That's an area that we've seen an uptick And I anticipate uh we're going to see More of and there's going to be more Charter Uh title 26 crypto cases here uh in this Year and going forward and the agency is Getting more aggressive in tracking down Crypto tax evasion in February the Agency along with the doj brought Criminal charges focused solely on Unpaid taxes on cryptocurrencies for the First time the IRS accused a Texas man Of failing to report $4 million in Bitcoin for two years and failing to pay Taxes on the gains from those crypto Holdings the agency also hired experts To focus on this asset class the IRS Isn't tracking down these alleged crypto Crimes on its own either has Partners in The crypto industry to help track down
Bad actors obviously we're at chain Analysis uh links event and chain Analysis along with several other um uh Partners have been very helpful uh in US In IRS and other law enforcement Agencies uh sort of cracking the code um I would say the partnership aspect of That the public private partnership Aspect of that whereas my IRS special Agents um all have account predominantly All have accounting degrees and are Phenomenal at chasing tracing and and Following money but some of the tools And some of the applications that are Needed when we start uh investigating in The crypto world with aisc of of true Ownership that's where the the um expert Support of companies like chainalysis And others and those tools and Applications allow my special agents to Then utilize that to move forward uh and And and determine whether or not a crime Has been committed we've seen some Pretty big seizures of crypto from the IRS and other US law enforcement Agencies in recent years so we asked FICO what he expected going forward as Crypto only gets more popular crypto has Been involved in some of the biggest Seizures the United States government Has ever seen and certainly over the Last couple years IRS crimin Investigation has been the agency who's Been doing those those seizures um I
Have not seen anything that would make Me think that those would Dissipate um I do think as I said Earlier that the use of crypto is Becoming more pervasive and I think There are going to be some more pure tax Uh cases that are going to come forward And I do think in terms of some of the Scams some of the phone scams and Romance scams and pig butchering and Items such as that I can I think that Crypto is going to both maintain and Probably have a larger um part of those Frauds as frauders try to to prey on on Innocent uh taxers but let's go back to You let's say you have crypto sitting in A wallet or maybe you sold your crypto For cash to buy a new car how should you Properly report your Holdings to the IRS Well the basic rule of thumb is as an Asset when you acquire an asset you have A basis in the asset and when that when You then dispose of that asset in this Case the purchasing of a of another uh Home or car or anything um the the point Where you sold is your disposition so That difference if you if you acquired Something and it cost you $10,000 and You sold it at $20,000 you have a $10,000 gain if that period of time was More than one year that would be treated As a long-term capital gain less than One year that would be a short-term Capital gain or tax at the ordinary
Income rate all right that's all for Crypto world this week we'll be back Again on Monday and we'll see you then [Music]
