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Tom Goldstein, a former Supreme Court lawyer and co-founder of SCOTUSblog, has been accused by federal prosecutors of failing to report crypto transactions worth over $100 million. According to the allegations, Goldstein’s involvement with two unhosted cryptocurrency wallets has led to charges of tax evasion and money laundering.
As per the indictment filed on January 16, Goldstein is accused of failing to disclose his crypto-related income on his 2020 and 2021 tax returns. This omission allegedly occurred despite his involvement in more than $10 million worth of cryptocurrency transactions during those two years.
Prosecutors claim that Goldstein used these wallets, particularly one known as “935B,” for large-scale gambling activities and other purposes. In response to the allegations, Goldstein’s attorneys have countered that he did not control the 935B wallet and that another individual gave him its address.
However, federal prosecutors argue that even if Goldstein did not control the wallet, his use of its address to receive approximately $500,000 in USDC in May 2023 demonstrates his involvement with it. They assert that this transaction shows how Goldstein could facilitate large-scale crypto transfers for gambling and other purposes without directly controlling the wallet.
Goldstein’s case has taken a dramatic turn since he was initially granted bail following his January indictment but was later detained by federal authorities due to concerns over flight risk. In response, Goldstein appealed the decision, which led Judge Timothy Sullivan to grant him bail with conditions, including the requirement to disclose all of his cryptocurrency holdings.
The developments have sent shockwaves through the crypto community, sparking widespread speculation and debate about Goldstein’s alleged actions and their potential implications for the industry as a whole.
