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So they could have reported the stolen coins it as income, paid taxes, and they'd be in the clear?



How are you arriving to this conclusion? Paying taxes on illicit income does not make the income non-illicit. It just makes you easier to catch.


I was replying under some comment thread about the the government "not legitimizing" bitcoin, and thus not considering "bitcoin theft" to be actual theft.

And thus the only crime here being tax evasion.




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