cryptoknowmics.com
Ilya Borisov, a developer and artist from Latvia, is facing up to 12 years in prison after officials alleged that his €8.7 million in non-fungible tokens (NFT) earnings were large-scale money laundering proceeds and criminality. Borisov described how the government had frozen his bank accounts without informing him of the situation on his website Art is Crime. The developer who received the money from 3,557 NFT releases noted in the case chronology that the case processes began in February of this year. Still, he didn't learn about the situation until May.
No Regulation of Cryptocurrencies
The developer claimed that he approached the Latvian State Revenue Service (VID) about how to legitimate his bitcoin revenue because there aren't any clear crypto tax regulations. As a result, throughout 2021, he had to pay €2.2 million in income taxes. After being urged by the organization to declare himself a "self-employed person" and pay taxes on the euros withdrawn, he obliged by paying the taxes. He made money during the NFT boom of 2021 and identified himself as one of the successful musicians in the market, which is notable. Through his attorney's assistance, Borisov could contest the freezing of his bank account, and on June 30, the court issued orders allowing him to access the money.
The Case Appeal
The account, however, was never unfrozen, and a subsequent investigation revealed that the case's lead investigator had quit. It's interesting to note that the newly appointed prosecutors also secured urgent warrants to take his possessions. On July 19, he claimed to have given the authorities a thorough account of his activities and earnings history as evidence of the money's legitimate source. Former Meduza employee Borisov, who filed the case appeal, emphasized that no prosecutor had attempted to contact him about the proceedings. Consequently, the developer appealed against the ruling but anticipated further delays because of the cumbersome processes.