Blockchain Bites: DeFis Harvest Hit, IRS Crypto Clarification, JPMorgans Buoyant Bitcoin Note

Tuesday 27 October 2020, 3:03 AM AEST - 1 month ago

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The IRS has clarified some questions around crypto disclosures for the upcoming tax season. A popular DeFi application appears to have been attacked. JPMorgan analysts see considerable upsides to bitcoin.

Crypto guidance
The U.S. Internal Revenue Service has clarified that simply holding cryptocurrencies does not need to be disclosed. A published set of draft instructions for this years 1040 tax form spells out that returnees must disclose any crypto sales, exchanges for goods or services, or exchanges for property (including other crypto assets). Respondents must also reveal if they received any cryptocurrency for free, including via airdrops or hard forks. The draft is likely to stand unless there are unexpected issues or new legislation requiring changes, the IRS said in the document, CoinDesks Daniel Palmer reports.

DeFi drain
The $1 billion Harvest Finance protocol appears to have been attacked, draining $25 million worth of bitcoin and stablecoins. The anonymous team behind the popular DeFi application tweeted they are working actively on the issue of mitigating the economic attack, adding the malicious actor manipulated stablecoin prices on Curve Finance, another DeFi protocol. DeFi analyst Chris Blec earlier claimed Harvest Finances administrators held an admin key that can drain funds locked in the protocols contracts – though its unclear if that level of control is related to the recent exploit. The platforms native token, FARM, tumbled 65%, and the protocols TVL dropped to $673 million (as of 5:00 UTC) on the news.

Tether forfeits
The U.S. government is pursuing a civil forfeiture claim on more than 300,000 units of the tether (USDT) cryptocurrency after they were reported stolen in a hack earlier this year, CoinDesks Sebastian Sinclair reports. The funds, co-owned by Shixuan Cai and business partner Lin Jia ...

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