from the good-enough-for-Al-Capone dept.
Submitted via IRC for TheMightyBuzzard
The 10,000 bitcoins that seven years ago famously paid for the delivery of two Papa John's pizzas would be worth more than $74 million today.
The exploding value of the cryptocurrency since its first real-world transaction in 2010 is one reason the U.S. Internal Revenue Service is pushing to see records on thousands of users of Coinbase Inc., one of the biggest U.S. online exchanges. The company's digital currency platform allows gains to be converted into old-fashioned dollars in transactions that the IRS alleges are going unreported.
Coinbase and industry trade groups are fighting back in court, claiming the government's concerns about tax fraud are unfounded and that its sweeping demand for information is a threat to privacy.
Digital currency exchange Coinbase is building on a recent hiring streak with a deal to buy Earn.com announced Monday. As part of the acquisition, the crypto company will bring on Earn's founder and CEO as its first-ever chief technology officer.
Before running Earn, which lets users send and receive digital currency for replying to emails and completing tasks, Srinivasan was a general partner at venture capital firm Andreessen Horowitz.
Srinivasan will act as "technological evangelist" for both the industry, and for Coinbase in his new role, the company said.
"Balaji has become one of the most respected technologists in the crypto field and is considered one of the technology industry's few true originalists," Coinbase CEO Brian Armstrong said in a blog post Monday.
Coinbase did not disclose the terms of the deal but according to Recode, the offer was more than $100 million.
Earn.com sounds like a Mechanical Turk website that pays out virtual blockchain money to bubble boosters. From the website: "Get paid to learn about new crypto projects. Crypto startups use Earn.com to build their communities, get feedback on whitepapers, and airdrop tokens to qualified recipients."
Related: Coinbase Escalates Showdown on U.S. Tax Probe as Bitcoin Surges
Coinbase Ordered to Report 14,355 Users to the IRS
Coinbase is NOT Erratically Overcharging Some Users and Emptying Their Bank Accounts [Updated]