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Are cryptocurrency ransom payments tax deductible? By Cointelegraph

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Are cryptocurrency ransom payments tax deductible?  By Cointelegraph
Are cryptocurrency ransom payments tax deductible?

Around 2,000 years ago, during its Han Dynasty, China made peace with some of the nomadic peoples of Central Asia who continually looted the Silk Road merchants in search of an easy payday. He did so to fully establish the Silk Road trade route, which stretched from China to Europe, and to secure a great source of wealth from the luxury goods trade.

Now, as commerce has increasingly moved digital during the global COVID-19 pandemic, cyberattacks are taking advantage of organizations’ lax cybersecurity measures. They are using ransomware to lock the data of these organizations with encryption until a ransom payment is made in cryptocurrency. In 2019, 98% of ransomware payments were made on (BTC).

Jungle Ozelli, Esq., CPA, is an international tax attorney and certified public accountant who writes frequently on tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications, and the OECD.