A Californian student, who turned a $5,000 investment in to a portfolio worth close to $1 million, has just been hit with a staggering tax liability for more than $400,000. And what better place to seek legal advice that social media platform Reddit?
The unnamed student, who goes under the suitably named Reddit handle “u/throwaway283921”, claims to have begun his trading in May 2018, whereby he signed up at popular cryptocurrency broker Coinbase. Moving forward, the student then purchased a range of alt-coins, which he states increased in value by more than 10x. By the end of December 2017, at a time when the cryptocurrency industry experienced a significant injection of capital that resulted in Bitcoin reaching its all-time high of $20,000, the student claims that his portfolio was worth just over $800,000. Not bad for a $5,000 investment just six months prior.