If you don't know who owns what public key you don't know who the funds are being sent to.Not true. They will be able to use blockchain to track your individual trades
I could have an address tied to a coinbase account and send funds to an anonymous address that isn't registered on any exchange.
I could receive funds to an anonymous address and then send those incrementally to my registered coinbase/gdax/etc account
OR JUST KEEP IT THERE
Especially in the case of bitcoin where I can have as many public addresses tied to my private key as I want, and generate them at will
The only way the Feds could use this as evidence legally is if they know who's on both ends.
They're overplaying their ability to say they know this information because it's impossible to know, they can only know what address money is sent/received
They're just expecting you to cash out at some point from an SEC regulated exchange which they could then draw an exact money trail from, and arbitrarily call it "income"
Lets not get into non US/decentralized exchange routes.
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