Chainalysis said Italian authorities uncovered a tax evasion case involving Bitcoin Ordinals and BRC-20 tokens, showing how newer crypto assets are increasingly becoming part of financial crime and tax investigations.
According to the report, Italy’s Guardia di Finanza traced more than €1 million in alleged undeclared capital gains linked to activity involving Bitcoin Ordinals and BRC-20 tokens. Investigators in Foggia and Rome reportedly used blockchain analysis tools after seizing a hardware wallet connected to the suspect.
The investigation originally started as a case involving unreported income. Authorities later found that the suspect had allegedly used Ordinals and BRC-20 token transactions while also receiving public subsidies.
Chainalysis said the case demonstrates that even technically advanced crypto tools do not provide complete anonymity because blockchain records remain public and traceable.
Bitcoin Ordinals allow users to attach data such as text or images directly to individual satoshis, the smallest units of Bitcoin. BRC-20 tokens use text-based inscriptions on the Bitcoin blockchain to create and transfer tokens without traditional smart contracts.
According to Chainalysis, the suspect allegedly created assets, listed them for sale, sold them at higher prices, and then moved the profits back into a main Bitcoin wallet. Authorities said the process was repeated multiple times through cycles of minting, selling, and reinvesting profits into new inscriptions.
The case comes as governments worldwide increase focus on crypto tax reporting and enforcement. Studies cited in the report suggested that large gaps still exist between actual crypto ownership and what taxpayers report to authorities.
In the United States, lawmakers are also debating how crypto taxation should be handled. Discussions have included possible tax relief for small crypto payments, simplified reporting rules, and revised guidance for staking rewards.
Meanwhile, crypto exchanges have raised concerns about reporting burdens. Kraken reportedly filed millions of crypto tax forms for 2025, many involving transactions worth less than $50.
Chainalysis said the Italian case highlights how investigators can combine exchange records and blockchain activity to connect crypto wallets to real individuals, even when newer asset types such as Ordinals and BRC-20 tokens are used.
