Chainalysis: Tax evaders are starting to use Bitcoin Ordinals and BRC-20 tokens to hide their wealth

According to a report by the blockchain analysis platform Chainalysis, the economic and financial police department of Foggia, Italy, recently uncovered a tax evasion case. The individuals involved are suspected of using the Bitcoin Ordinals protocol and the BRC-20 token standard to create and resell tokens, concealing approximately $1.1 million (€1 million) in capital gains on-chain, with the profits continuously reinvested into new inscription operations.

Chainalysis pointed out that although such emerging technological means may seem covert, the inherent transparency of blockchain leaves a permanent and immutable record of transactions. Blockchain intelligence can effectively track tax evasion by reconstructing financial networks and cross-referencing exchange declaration data. The agency warned that as new categories of digital assets continue to emerge, the gap between real on-chain wealth and declared tax status will become a key investigation target for global law enforcement agencies.