American tax officials

Chapter 297 The Worries of the Richest Chinese

77th floor of Willis Tower, Chicago.

This is Ethereum's headquarters in the United States.

At this moment, a large number of people in suits and ties walked out of the office and then poured into a conference room.

"I believe everyone is already aware of the IRS's naming and shaming incident. What are your thoughts on this?"

Ethereum's founder, Vicklin Slmog, looked at the group of executives who had entered and taken their seats.

"This David is really something. He even dug up Satoshi Nakamoto. Now that he has publicly called us out, if we don't 'pay tribute,' our fate will probably be grim."

"In terms of encryption, Bitcoin's technology is far more mature than ours, yet David still managed to find incriminating evidence against us. If he wants to target us, we definitely won't be able to escape."

"Bitcoin has collapsed, we're in big trouble this time..."

Strictly speaking, Ethereum was created because its founder, Viktor Axelsen, borrowed the Bitcoin model from Ethereum.

Today, although Ethereum's value is far less than Bitcoin's, it has firmly secured its position as the second most valuable cryptocurrency.

But regardless, Bitcoin, the kingpin of the cryptocurrency world, has fallen, and now they have been publicly named again, so the top executives feel that this time they probably won't escape unscathed.

"So, according to you, we should just obediently 'pay tribute' to the IRS?"

Viklin was somewhat dissatisfied with the sighing and groaning look on everyone's faces.

It's worth noting that, according to data released by the IRS, Bitcoin has paid 200 billion in taxes.

While Ethereum's market capitalization and profits are not as large as Bitcoin's, they are still nearly half the size of the latter. Therefore, the figure of 100 billion is almost certain.

Who would willingly hand over such a huge sum of tax?

"No, no, Mr. Viklin, it's just that the situation with the IRS is dire, and David's methods are extremely ruthless. I don't think we can fight against him. I think we should ask for help."

The reason Bitcoin became so popular is because the Illuminati played a significant role as a behind-the-scenes force.

Ethereum's rise was also driven by certain factors.

In early 2017, an Ethereum investment alliance was established by more than 20 top global financial institutions and technology companies, including Morgan Stanley, CME Group, Bank of New York Mellon, Thomson Reuters, Microsoft, Intel, and Accenture.

Ethereum, with the support of this alliance, was finally able to break through the encirclement and become the second largest cryptocurrency, with a market value of nearly 5000 billion.

Viklin frowned. After weighing the pros and cons, he realized that it would be difficult for him to fight against the IRS and David on his own. Finally, he picked up the phone...

46 Elliott Bay, Seattle, is home to the Binance exchange.

Inside the office of this high-rise building, a bespectacled man with a Chinese appearance looked worried.

His name is Zhao Changpeng, and he is a legendary figure of the 21st century.

He was born in China and immigrated to Canada at the age of 12. He entered the cryptocurrency industry in 2014 and officially founded Binance (a global cryptocurrency exchange) in June 2017, serving as its CEO.

In July of the same year, he launched his own blockchain currency – the digital currency "Binance Coin".

Binance raised $1500 million in its initial coin offering and became the world’s largest cryptocurrency exchange in less than eight months, maintaining its leading position in the industry.

In February 2018, Forbes released its first list of billionaires in the cryptocurrency industry. Zhao Changpeng ranked third with an estimated net worth of $11-2 billion, becoming the only Chinese person in the top ten at the time, and appeared on the cover of that issue of Forbes magazine.

However, this was just the beginning for him. What truly propelled him to the top was at the end of last year when he became the new richest Chinese person with a net worth of 941 billion US dollars. This shocked the world and made the world aware of who he was.

Afterwards, someone conducted an investigation into him and discovered something astonishing.

In 2017, Zhao Changpeng was just an unknown figure, and his net worth was nowhere near that of anyone.

However, by 2021, he had accumulated a net worth of $941 billion at a rocket-like speed, all within just five years.

This seems to be the fastest person to accumulate wealth in the 21st century, bar none!

It's not that Binance's currency has much value; strictly speaking, Binance's currency is far inferior to Bitcoin and Ethereum in the cryptocurrency world.

The main reason why Zhao Changpeng was able to become the richest Chinese person in just a few years is that he built the Binance exchange, which has become the world's largest cryptocurrency trading platform.

Cryptocurrency exchanges and cryptocurrencies can be viewed as analogous to stocks and stock exchanges. As one party to an exchange, you can collect transaction fees based on the transactions generated within it.

This is similar to Egypt, which controls the Suez Canal; it would be difficult for them not to become extremely wealthy.

"Changpeng, we all know that Satoshi Nakamoto is no ordinary person. Even someone as powerful as him fell into the hands of David. If we fight against him, we will not have a good outcome."

Inside the office, besides Zhao Changpeng, sat another Chinese man named Lin Huaide, a longtime close friend of Zhao Changpeng and also a shareholder of Binance.

Zhao Changpeng remained silent, clearly acknowledging the other party's words.

Before Binance was founded, he sold an apartment in Shanghai and invested $100 million into the Bitcoin community.

Having been in this industry for so long, he certainly understood what Satoshi Nakamoto really meant.

And now that even this legendary figure (organization) has fallen, there's no doubt that Binance is in trouble.

"Wyde, so you mean we need to go find David and ask him to voluntarily declare his tax situation?"

After a long silence, Zhao Changpeng finally spoke his first words.

"As you know, as Binance grows bigger and bigger, many people are getting greedy. And recently, the Department of Justice has been investigating our blockchain trading platform, clearly intending to exploit us. If we then provoke the IRS..."

Lin Huaide pouted and didn't say anything more, but his meaning was already very clear.

Zhao Changpeng looked even more worried when he heard that the Ministry of Justice was investigating them.

Unlike cryptocurrencies such as Bitcoin and Ethereum, Binance's success is inseparable from the capital operations behind them.

The reason why Binance was able to succeed was mainly due to the explosive popularity of Bitcoin and Ethereum.

It could also be said that the rise of cryptocurrencies like Bitcoin and Ethereum led to the rise of the Binance exchange as well.

Seeing their rise, many investors naturally wanted to get involved and get a share of the pie, but Zhao Changpeng, who did not want to be controlled by others, refused.

The consequence of refusing this capital is that they now face investigation by U.S. law enforcement.

Of course, there is another crucial reason why American law enforcement is investigating them.

That is, Zhao Changpeng is not one of our own, as some Americans believe.

In the United States, Chinese Americans are already viewed with suspicion from all sides, and since he controls Binance, a money-devouring behemoth, it's hard for him not to be targeted.

"Wait, Huai De..."

After pondering for a while with a troubled expression, Zhao Changpeng suddenly seemed to have thought of something and said, "Do you think it's possible for us to leverage the influence of the National Taxation Bureau to put pressure on the Department of Justice?"

If there's one department in the United States that the Department of Justice fears the most, it's definitely the IRS.

After all, no one is unafraid of having their tax issues scrutinized by the IRS.

Upon hearing this, Lin Huaide was somewhat tempted, but his expression quickly returned to calm. He said, "If the IRS can put pressure on the Department of Justice, our crisis can indeed be resolved, but why would they help us?"

"We can pay taxes, even if it's a bit more, it doesn't matter, as long as they are satisfied and put in a good word for us, it's all worth it."

The Department of Justice's investigation into Binance is not just about money; it's clearly aimed at gaining control.

Losing control would be worse than being killed.

Therefore, in Zhao Changpeng's view, even if it costs more money, it is worth it as long as it can ensure safety!

"Pay more taxes..."

Lin Huaide still found it difficult because, according to the IRS's regulations, they had the right to collect taxes, but they could not interfere with the enforcement actions of other departments.

The Department of Justice is investigating Binance on the grounds of money laundering, which is not a tax issue, so the IRS has no reason to get involved.

"Oh, by the way, as far as I know, Director David has Chinese ancestry. Perhaps we can use that as a bridge, and if we're more proactive in tax matters, that might sway him. Just one word from him could solve our current predicament!"

Is the Department of Justice afraid of David?

The answer is definitely yes, I'm afraid.

In fact, not only the Department of Justice, but now there are very few people in both the legal and illegal worlds of the United States who are not afraid of David.

So as long as David is willing to say a word for Binance... no, or even just get David's permission to use his name, the Department of Justice will definitely have to be wary.

"Well... if Changpeng thinks this is feasible, then let's give it a try..."

Binance is currently in a desperate situation. Without external intervention, they will surely become lambs to the slaughter. Therefore, Lin Huaide agreed to give it a try.

After obtaining his partner's consent, Zhao Changpeng immediately picked up the phone on the table: "Susie, help me organize our tax ledgers in detail..."

Meanwhile, apart from Ethereum and Binance, the two giants in the cryptocurrency world, all other cryptocurrency companies, large and small, held an emergency meeting after being called upon by David.

Amidst the global discussion surrounding this matter, the next day arrived.

At the Los Angeles IRS office, a large number of media reporters arrived early in the morning to wait and see if any cryptocurrency companies would come to file their tax returns, and which companies and individuals would arrive first.

"Do you think the Ethereum team will come today?"

"Ethereum is uncertain. I've heard that there are many financial groups behind them and a lot involved, so I think USDT might be the first to arrive."

"It's not just USDT; I think Binance, the world's largest trading platform, might also be coming today."

Amidst the heated discussions across the internet, it was already 10 a.m.

At that moment, the arrival of a Maybach attracted everyone's attention.

Under the watchful eyes of the crowd, the car door opened, and when Zhao Changpeng and Lin Huaide stepped out, the media present immediately erupted in uproar.

"Those are Binance CEO Changpeng Zhao and company shareholder Lin Huaide!"

"As expected, the first to arrive is Binance, a giant in the industry. I wonder how much tax they will have to pay this time."

"It's said that Binance has recently been subjected to a series of investigations by the Department of Justice, and the IRS is an even tougher agency than the Department of Justice, so it seems normal that they were the first to come."

"..."

Amidst the murmurs, Zhao Changpeng and Lin Huaide went inside.

Upstairs in the office, when David heard that Binance was the first to arrive, he was slightly taken aback, and then some information about Binance came to mind.

The largest cryptocurrency trading platform.

Founder Zhao Changpeng became the richest Chinese person at the end of last year.

Gathering his thoughts, David said into the phone, "Bring them to my office, David."

Seven or eight minutes later, there was a knock on the door. After receiving a response, Zhao Changpeng and Lin Huaide pushed the door open and entered.

"Hello, Director David."

As Zhao Changpeng extended his hand, he also greeted her in Chinese, a gesture he intended to use to build a closer relationship.

"Hello, Mr. Zhao."

In any case, since he was the first person to arrive after he called out their name, he set a sincere example, so David didn't put on any airs and responded in Chinese as well.

Upon hearing this response in Chinese, Zhao Changpeng felt a little excited.

He knew that David had Chinese ancestry, but he didn't know if David could speak Chinese. Unexpectedly, David not only could speak Chinese, but he could speak it so fluently and fluently. This made him feel that he had achieved the first step in building a relationship with David.

"Oh, by the way, Director David, this is Mr. Lin Huaide, a shareholder of our company."

"Hello, Mr. Lin Huaide."

"Hello, Director David."

"Please have a seat, both of you."

After taking their seats, Zhao Changpeng eagerly took out a document from his briefcase, handed it over, and said, "At Director David's request, we are here today to declare Binance's tax situation. Please take a look."

David nodded slightly, took the documents, and began to examine them carefully.

……

……

P.S.: I wonder if you've all seen the news about Zhao Changpeng, a big name in the cryptocurrency world, being targeted by the US government recently. Would you like David to help him out in the book?

(End of this chapter)