The increased adoption of many cryptocurrencies into the mainstream of the worldwide financial sector has led to altcoins becoming the topic of discussion for even the already-famous stars of the internet. In particular, Ian Balinca has expressed his deep interest in cryptocurrencies. He is known for his immensely popular YouTube account, which continues to garner interest from tens of thousands of fans from all over the world.
Balinca’s account was hacked during one of his famous live-streams. His reaction caught on video, it captivated the attention of many within the crypto community. Though it was not directly stated how much money was stolen during the supposed “hack,” the YouTuber seemed to scramble to respond to the situation throughout the stream.
But due in part to the brilliant detective work of some consumers within the massive crypto community, the allegations of his account having been hacked have been called into serious question. Because of the high-profile nature and potential motivations of the case, this incident could become an excellent case study for how crypto is used, and how profits might be concealed by the wealthy from prying regulatory eyes.
The main basis for accusations that the YouTube star may have been lying about the hacking of his crypto accounts is the presence of several transactions from the account that was said to have been hacked, both receiving tokens and transferring them to exchange site Binance. It was a Twitter analyst who initially noticed the discrepancy, several additional speculators outlining their skepticism to the initial story presented by Balinca.
Two types of coins were deposited into the account: Mainframe and Quarkchain tokens. In both cases, speculation is that the YouTuber himself made the transactions, theorizers citing his repeated declaration that he was likely to buy these coins as evidence that he made the choice of his own fruition. This would be a problem, considering that he had proclaimed that the account had been stolen by unknown perpetrators.
Potential Tax Evasion
This scandal begs the question: why would someone pretend to have their crypto accounts hacked? The answer is relatively simple to anyone with a background understanding of shady financial practices in the traditional sector—he wanted to hide his assets.
Many notable crypto figures have pointed out that this move by the famous YouTuber is likely a ham-fisted attempt to conceal the profits which he attained from the sale of crypto-related securities and gambles. This would be especially advantageous when it came time to pay up to some of the significant government taxes levied against Bitcoin and capital gains.
The crux of the argument is that you cannot pay taxes on coins that were stolen. By pretending publicly to be the victim of a crime which robbed him of his potential profits, he would theoretically be able to avoid paying the hefty taxes which come along with his relative success playing the market in this last quarter.
But with the work done by the crypto detectives to expose the potential scheme, it is unlikely that the funds will be hidden from the prying eyes of regulators for long.