What Are the Tax Implications of the Alleged Binance Wallet Hack (or Any Crypto Exploit)?

What Are the Tax Implications of the Alleged Binance Wallet Hack (or Any Crypto Exploit)?


This weekend, a crypto hacker cost himself big after successfully draining $27 million worth of tether (USDT) from a cryptocurrency wallet. The wallet in question was reportedly linked to the crypto exchange Binance’s deployer address, according to on-chain sleuth ZachXBT.

The exploit began around 4:36 P.M. on Nov. 11, with the unknown attacker quickly converting the stolen stablecoins for ether (ETH), which was then sent to low liquidity but noncustodial exchanges including FixedFloat and ChangeNow before being converted to bitcoin (BTC), using the permissionless THORChain bridge.

This is an excerpt from The Node newsletter, a daily roundup of the most pivotal crypto news on CoinDesk and beyond. You

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