Depricated as of Oct 2022

Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!

Have a great day,

DOJ and IRS Target Crypto Broker SFOX Clients for Tax Evasion

DOJ, IRS Targets SFOX / Image Credit: CRYPKYP
Source: Decrypt
1660719779 17 Aug / 07:02

A California judge has authorized the Internal Revenue Service to issue a "John Doe" summons to SFOX, a principal broker.

If granted, the subpoena would request user identity and transaction details for anybody who completed at least $20,000 transactions between 2016 and 2021.

In a memo on the SFOX summons, Hubbert stated that IRS Agent Seng Lee had identified ten SFOX clients accused of circumventing tax rules.

Included among these taxpayers is an individual who “apparently participated in a Ponzi scheme” and received nearly $1 million in deposits through SFOX but did not disclose it to the IRS in 2016, 2017, or 2018. The IRS believes that a “YouTube creator and online gambler” acquired around $120,000 in bitcoin from their subscribers, swapped it for U.S. dollars through an SFOX account, but did not record it on their tax return.

Tuesday’s press statement from Deputy Assistant General David Hubbert stated, “The information requested by the summons authorized today will contribute to ensuring that cryptocurrency owners comply with tax regulations.”

The approval of a summons does not indicate any suspicion of misconduct against SFOX. However, this would require SFOX to produce a list of all users who fit the government’s requirements. The tax authority would match the identities and transaction histories with other information to assess whether or not individuals had broken tax law.

SFOX did not answer Decrypt’s request for comment immediately.

It is the latest effort by the Department of Justice and the Internal Revenue Service to apprehend cryptocurrency dealers who neglected to declare transactions on their tax filings.

In 2017, judges authorized the IRS to serve Coinbase with a John Doe summons. Consequently, the corporation shared data on around 14,000 of its subscribers. Despite early opposition, the courts issued John Doe summonses to Kraken and USD Coin issuer Circle last year (along with Poloniex, which split from Circle in 2019).

Other taxpayers highlighted in the document include those who placed thousands of dollars worth of Bitcoin and other cryptocurrencies into SFOX accounts, swapped them for dollars, moved the funds to their bank accounts, and failed to declare any gain or loss from the transactions.

Last News and Media
CRYPKYP contain links to third-party websites, resources, and advertisers. CRYPKYP does not control, sponsor, recommend or otherwise accept responsibility for any third-party content because we are not responsible for the availability of these outside resources or their contents or privacy practices. It will help if you direct any concerns regarding any third-party content to such a third party. We don't accept responsibility for the content of external websites linked to through the Site or the Services. Third-party content is accessed at the user's own risk. CRYPKYP distributes content from third-party publishers as indicated on the site from time to time mainly in Airdrops, News / Media, Whale Alerts, and Rumors. In these circumstances, CRYPKYP only provides limited stylistic input to the content. CRYPKYP does not verify and takes no responsibility for the accuracy of the content provided by any such third-party publishers.