🚨 An Indian crypto trader reportedly got hit with an ₹88 LAKH tax notice despite claiming he was in LOSS
Here’s what most crypto traders still don’t understand:
The Income Tax Department does NOT only look at your final profit or loss.
They look at your TOTAL transaction activity.
In this case, the trader reportedly invested around ₹9.6 lakh.
But after repeated buying and selling, his total crypto turnover allegedly crossed ₹80+ lakh.
That is where things become dangerous.
Because exchanges now report large amounts of data directly to authorities:
• Transaction volumes
• PAN-linked activity
• TDS deductions
• Exchange records
• Wallet movement
• Bank links
And India’s crypto tax system has become heavily data-driven.
This means even small traders can get flagged if records don’t match.
The issue was reportedly not profits.
It was documentation.
Authorities allegedly questioned:
• Source of funds
• Complete bank trails
• Matching transaction history
• Consistency between filings and exchange data
That can trigger scrutiny under Section 69 relating to “unexplained investments.”
And this is where things get brutal.
If authorities treat activity as unexplained income, the taxation becomes extremely punitive.
Historically, effective taxation under these provisions has gone as high as 60-78% in some cases after surcharge and cess.
No normal crypto loss logic helps there.
This is why one of the biggest misconceptions in crypto is:
“I made losses so taxes don’t matter.”
Wrong.
India’s crypto tax framework under Section 115BBH is already extremely strict:
• 30% flat tax on gains
• 1% TDS on transactions
• No offsetting crypto losses
• No carrying losses forward
And even if you lose money overall, poor reporting can still create major problems.
Another thing most traders ignore:
Crypto-to-crypto swaps are ALSO taxable/reportable events.
BTC → ETH
ETH → SOL
SOL → USDT
Even if no INR touches your bank account.
Authorities also compare your filings with:
• AIS
• Form 26AS
• exchange-reported TDS
• bank statements
• ITR disclosures
Any mismatch can trigger notices automatically.
That’s why proper record keeping is becoming mandatory now.
Especially for people using:
• Multiple exchanges
• Binance + Indian exchanges
• DeFi wallets
• On-chain swaps
• OTC trades
Most people have terrible documentation.
And that is exactly what creates risk.
The broader trend here matters more than the specific anecdote.
India has already sent thousands of crypto-related notices in recent years using exchange data, PAN linkage and AI-based scrutiny systems.
The “wild west” phase of crypto taxation is ending.
Final lesson:
Your profits are NOT the only thing being tracked anymore.
Your transaction history, wallet activity, fund source, TDS records and filing consistency matter just as much.
If you actively trade crypto in India and still don’t maintain proper records, you are taking a serious risk.
Hyperliquid getting Fundstrat shoutout as the 'next big thing' after ETH & SOL- this is big! Perp DEX building hard.
Could this be the narrative leader for the next leg? Who's aping the infrastructure plays?
#Hyperliquid#Crypto#Altcoins
A much-awaited welcome move from @SEBI_India!
'Verified' badges on Google Play for SEBI-registered trading apps will help curb fraudulent apps and safeguard investors.
Great initiative against cyber frauds!
#SEBI#Google#InvestorSafety
SEBI and Google Play Store Join Forces to Combat Fraudulent Trading Apps with New 'Verified' Labels
SEBI and Google have achieved a significant milestone in protecting investors from fraudulent applications. Verified apps associated with SEBI registered entities will now display a 'Verified' label in the Google Play Store.
#SEBI #Google #InvestorProtection #cyberfraud #tradingapps #stockmarket
@NATIXNetwork @NomadicML Smart move by @NATIXNetwork. Growth numbers cooled in February, but turning that huge video dataset into searchable AI training material with @NomadicML looks promising. Moving from raw collection to real utility — good evolution!
@magaahahs Stablecoins quietly evolve into the true global USD ruler — dominating everyday value flow and world commerce — while Bitcoin solidifies as the new digital gold that nations and institutions silently hoard and save for the long haul.
@CryptooIndia Rest of the world: crazy- over 20–30% fuel hikes
India: 0% on petrol, chilling
Big salute to the government for not letting global geopolitics empty our pockets. Loved the way it protects 140 crore people 🙏🇮🇳
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@NATIXNetwork Haha me and buddies were obsessed with Pokémon Go back then, walking everywhere not knowing anything 😂 Someone ended up with billions from it. NATIX gives rewards to people instead – that's awesome and feels much fairer! Keep going @NATIXNetwork team 🔥
Web3 gaming 2026: finally fun > token dumps. Pikamoon, Earth Version 2, Illuvium dropping real AAA gameplay + true ownership + AI agents. Hype died, quality won. What's the one Web3 game you're actually playing daily right now—and why? #Web3Gaming#GameFi#BlockchainGaming
If you're building in Web3 & hunting for your funding round.
Here are the VCs actively writing cheques in 2026:
1.) Paradigm (@paradigm)
Raising a fresh $1.5B fund right now.
Backed Uniswap, Optimism and Monad.
Focus: AI x crypto, DeFi infrastructure, stablecoins, autonomous payments.
Early stage. Research driven.
Most selective fund in Web3.
➾ https://t.co/dYNYsd200f
2.) a16z Crypto (@a16zcrypto)
$7.6B raised across four funds.
Most active crypto VC globally.
Backed Compound, Dapper Labs, Yuga Labs.
Focus: L1s, DeFi, consumer crypto, AI agents, Web3 infrastructure.
Pre-seed to growth stage.
➾ https://t.co/CrO2lb5qp8
3.) Pantera Capital (@PanteraCapital)
First US crypto VC. Investing since 2013.
$1B fund with $200M+ allocated for AI x crypto.
Backs both tokens and equity.
Focus: AI infrastructure, DePIN, decentralized networks, L1s.
➾ https://t.co/7CRNYq54jc
4.) Binance Labs (@BinanceLabs)
Venture and incubation arm of Binance.
Chain agnostic. Multi-stage.
900+ applications last season.
Less than 2% accepted.
Focus: AI applications, DeFi, Web3 infrastructure, consumer apps.
➾ https://t.co/BeapWJ7gRv
5.) Coinbase Ventures (@cbventures)
Most active crypto investor in 2025.
87 deals closed in one year alone.
No fixed check size.
Backs anything growing crypto adoption.
Focus: Base ecosystem, stablecoins, AI agent payments, infrastructure.
➾ https://t.co/kwm6Y2BlJM
6.) Hack VC
Built by developers for developers.
Team includes builders and
quant researchers not just investors.
Focus: AI applications, on-chain infrastructure, early stage crypto.
Pre-seed and seed specialist.
➾ https://t.co/ekCAgPqIHG
7.) Polychain Capital (@polychain)
One of the most active early stage
crypto funds in the world.
Focus: decentralized AI networks, GPU tokenization, AI data infrastructure.
Known for deep technical due diligence.
➾ https://t.co/ogyQj7scq8
8.) Dragonfly Capital (@dragonfly_xyz)
Top tier crypto only fund.
Multi-stage. Global focus.
Strong presence in Asia + US.
Backed dYdX, Compound, Optimism.
Focus: DeFi, infrastructure, consumer crypto, AI x blockchain.
➾ https://t.co/8SJzeEjP9e
9.) DWF Labs (@DWFLabs)
One of the most active investors
in Web3 globally right now.
Multi-stage. Backs tokens and equity.
Fast decisions. High velocity.
Best for founders who need a quick answer.
➾ https://t.co/SCFchFYUzy
What VCs actually want in 2026:
Not hype. Not whitepapers.
- Working code
- Real users or traction
- Clear answer to "why blockchain"
- Team with skin in the game
- AI x crypto angle is a major plus
Crypto VC funding surged 433% in 2025
to $49.75 billion total.
The money is there. The bar is just higher now. Build something real. Then go find your round.
Save this.
Share it with a founder hunting for funding right now.
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