US tax thugs are spying on Bitcoin users

Source: Daily Beast

"You can use bitcoin. But you can't hide from the taxman. At least, that's the hope of the Internal Revenue Service, which has purchased specialist software to track those using bitcoin, according to a contract obtained by The Daily Beast. The document highlights how law enforcement isn't only concerned with criminals accumulating bitcoin from selling drugs or hacking targets, but also those who use the currency to hide wealth or avoid paying taxes. … The contractor in this case is Chainalysis, a startup offering its 'Reactor' tool to visualize, track, and analyze bitcoin transactions. Chainalysis'[s] users include law enforcement agencies, banks, and regulatory entities. The software can follow bitcoin as it moves from one wallet to another, and eventually to an exchange where the bitcoin user will likely cash out into dollars or another currency. This is the point law enforcement could issue a subpoena to the exchange and figure out who is really behind the bitcoin." (08/22/17)

http://www.thedailybeast.com/irs-now-has-a-tool-to-unmask-bitcoin-tax-cheats