A DeFi investor was hit with a $10.5 million tax bill after the Spanish tax agency classified a crypto-backed loan as taxable gains.
A Spanish decentralized finance (DeFi) investor was hit with 9 million euros ($10.5 million) in back taxes for taking out a crypto-backed loan, according to a local media report.
In a Thursday report, Spanish news outlet Periodista Digital said it obtained documents showing the investor had already declared all cryptocurrency operations and paid $5.84 million in taxes.
Three years later, authorities issued an additional bill tied not to undeclared profits, but to the act of depositing assets into a DeFi protocol in exchange for a loan. The assets were not sold, and no profit was realized, the report said.
