How your finance can be your downfall
Financial lawfare
First of all, if you want a full understanding of what financial lawfare is, you should consider reading the following article.
In short, lawfare refers to the use of legal and regulatory systems by governments to target and silence individuals they see as inconvenient or threatening. It's not about justice, it's about control.
When it comes to financial lawfare, governments use finance-specific laws to entrap individuals. This tactic is especially effective because financial regulations are often vague, complex, and overwhelmingly numerous, making it nearly impossible for the average person to fully understand or comply with all of them. That's what makes them such powerful tools for targeted repression.
To strengthen their control through financial lawfare, governments often weaponize their tax authorities. A wide range of taxes, applied to nearly every aspect of economic life, creates a complex and fragile financial landscape. This complexity makes it easy for authorities to find (or fabricate) discrepancies, giving them a powerful excuse to target individuals they see as problematic.
Tax evasion
When you look up the definition of tax evasion online, you'll find something like this: "Tax evasion is the illegal act of not paying taxes owed, either by failing to report income or by underreporting it. It is a serious crime that can lead to significant penalties, including fines and imprisonment."
However, I must say I strongly disagree with this government-oriented definition. It's designed to intimidate people and ensure compliance with government tax demands. To me, tax evasion is the act of refusing to pay taxes as a form of resistance against a corrupt system, a stand for our freedom against government rackets.
Here are three tax evasions types:
1) Tax Evasion Using Crypto (Cryptocurrency Transactions)
How it works:
Individuals may use cryptocurrencies like Bitcoin or Monero to conduct transactions outside traditional financial systems. Because crypto wallets can be pseudonymous and operate without central authorities, people might not report income, capital gains, or asset holdings.
Why it's used:
Difficult to trace if privacy coins or mixers are used
Transactions can cross borders easily
Crypto assets may be held anonymously
Legal risk:
Governments are increasing regulation and requiring exchanges to report user activity. Tax authorities now treat crypto as property or financial assets, so unreported gains can lead to audits or charges. Using Monero highly reduce this risk.
2) Tax Evasion Using Cash (Cash Transactions)
How it works:
Cash-based business owners or individuals may avoid declaring full income by accepting payments in cash and not recording them officially. Similarly, using cash avoids leaving a traceable record for purchases, transfers, or savings.
Why it's used:
Leaves no digital trail
No need for banking or reporting
Easier to conceal small-scale income
Legal risk:
Many jurisdictions have cash transaction limits, and businesses are required to keep accurate records. Large or repeated cash movements can trigger investigations, especially when bank deposits don't match declared income.
Here is a 2022 article showing that cash is disappearing from Americans habits, which basically means that they are letting government track their transactions.
3) Tax Evasion Using Electronic Means (Cards, Transfers, Deposits)
How it works:
This involves manipulating the digital financial system, using personal bank accounts, credit cards, or wire transfers to underreport income or shift funds undetected. It may also include splitting income across multiple accounts or jurisdictions to avoid detection.
Why it's used:
Can seem "clean" if done through formal channels
Some attempt to use complex layers to obscure funds
Exploits gaps in international financial reporting
Legal risk:
Banks and financial institutions are required to report suspicious activity. Governments use financial surveillance and international agreements (like FATCA and CRS) to track movements and match them against declared income.
I'd like to share this article with you, showing consequences of tax evasion. This is something governments deeply dislike, after all, they are obsessed with controlling the economy, and they tend to be highly creative when it comes to punishing those who step outside their system.
When we consider the risks outlined below, it may seem nearly impossible to engage in tax evasion without getting caught. However, in reality, there are methods that, if executed with discretion, can make it so difficult for governments to track or prove what you're doing that it becomes practically untraceable.
Of course, here we're not talking about the tax evasion practices of large organizations that have government backing or are allowed to operate in ways that keep them under control. Instead, we're focusing on actions that any individual can take. People who refuse to accept the government's racket and choose to act independently.
By following OPSEC advices displayed through the OPSEC bible you might keep a sufficient level of anonymity and privacy to be able to avoid some taxes.
Real life cases
Roger Ver
The first case I'd like to discuss is that of Roger Ver. We've already covered this case in a previous article about lawfare where you will also find interesting information about McAfee case. The part of Roger Ver's story that interests us today is how the government used financial lawfare to charge him and attempt to imprison him.
For a more in-depth look at this case, here is a lawfare case study that provides detailed information.
Roger Ver, known as "Bitcoin Jesus", is a cryptocurrency pioneer and entrepreneur who firmly believes that transactional freedom and decentralization are essential. He has spent a major part of his life fighting against government surveillance and control.
Because of his stance, the government began targeting him in an effort to silence his voice. As is often the case, they turned to financial lawfare as a means to aggressively exert control over dissent.
Roger Ver has been charged with tax and mail fraud after renouncing his U.S. citizenship, and he now faces up to 109 years in prison. A key detail to note is that although he was pursued by the U.S. government, Roger Ver was arrested in Spain, which cooperated with the United States.
As Roger Ver faces an absurdly long sentence for alleged financial "crimes", many of his supporters see this case as a clear example of financial lawfare.
Al Capone
Al Capone was one of the most notorious American gangsters of the 20th century, active during the Prohibition era in the 1920s and early 1930s. He led the Chicago Outfit, a powerful crime syndicate involved in bootlegging, gambling, prostitution, and other illegal activities.
Despite being widely known for orchestrating violence and running a vast criminal empire, law enforcement had difficulty directly tying him to most of these crimes.
How He Was Targeted by Financial Lawfare:
1) Difficulty prosecuting violent crimes:
Capone's criminal operations were well-insulated. Witnesses were too afraid to testify, and bribes often blocked prosecution. Law enforcement agencies couldn't pin major crimes like murders or racketeering on him, despite public knowledge of his role. Public opinion was also highly oriented by government controlled media.
2) Turning to financial charges:
Federal authorities, including the IRS, shifted strategy. Instead of going after Capone for murder or organized crime, they targeted him for tax evasion. The thinking was simple: even criminals have to pay taxes on their income, even illegal income. Here is a perfect example about how governments are working. "When there is no proof, go for financial lawfare".
3) The investigation:
IRS investigators found evidence that Capone had a lavish lifestyle with no legitimate reported income. They tracked down hotel bills, luxury purchases, and testimony from associates showing Capone had earned millions. Despite his efforts to keep transactions in cash and use aliases, investigators built a solid financial case.
That's basically where OPSEC becomes crucial. It can be the difference between living freely and facing imprisonment.
4) The conviction:
In 1931, Al Capone was indicted for income tax evasion and willful failure to file tax returns. He was convicted and sentenced to 11 years in federal prison, one of the harshest sentences for tax evasion at the time.
Do you remember Roger Ver? Sentences have increased significantly since then!
5) Aftermath:
Capone served time at several prisons, including the infamous Alcatraz. His health deteriorated due to untreated syphilis, and he was released in 1939. He died in 1947.
Paul Manafort
Paul Manafort is a political consultant and lobbyist who served as the campaign chairman for Donald Trump during the 2016 U.S. presidential election.
Why was he targeted?
Manafort became a central figure during the investigation into alleged Russian interference in the 2016 U.S. election. Although no direct charges were brought for election tampering, prosecutors shifted focus to his financial activities.
What financial laws were used?
Manafort was charged with bank fraud, tax fraud, failing to report foreign bank accounts, and money laundering. He was accused of hiding tens of millions of dollars earned from consulting work in Ukraine and failing to pay taxes on that income.
Why is it financial lawfare?
While the financial "crimes" were real, the timing and intensity of prosecution were politically motivated, intended to apply pressure and extract information on Trump's campaign. The leverage of financial regulations became a legal strategy to sideline a politically inconvenient figure and potentially implicate others.
This case is particularly interesting because the government used lawfare to target someone directly involved in political life. Lawfare can be applied both externally and internally. Ultimately, it's a matter of control.
Lauryn Hill
Lauryn Hill is a Grammy-winning singer, rapper, and member of the iconic group The Fugees. She's known not just for her music, but for her outspoken views on race, social injustice, and government overreach.
What was her opposition to the government?
Hill was highly critical of institutional systems, including the government and the music industry. She became reclusive and vocal about not wanting to be controlled by corporate or political entities. Her refusal to conform made her a controversial figure in the public eye.
How was she charged?
In 2012, Hill was charged with failing to pay federal income taxes between 2005 and 2007 on about $1.8 million of income. She pleaded guilty and was sentenced in 2013 to:
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3 months in federal prison
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3 months home confinement
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$554.000 in restitution
Why is it considered financial lawfare?
Hill explained publicly that she intentionally withdrew from society to protect her family from a manipulative and oppressive system. Many of her supporters believe the IRS charges were a form of state punishment for her defiance, especially given that she wasn't hiding income for gain but protesting the system itself.
The government pursued the case aggressively, even though she made efforts to pay restitution. Supporters argue it was more about sending a message than justice, using financial laws as a tool to bring a high-profile dissenter back into line.
Personal thoughts
While studying these cases, one thing is striking me: sentences seem less correlated to the severity of the "crimes" and more to how much the government feels threatened by them. Opponents with large followings and influence often face harsher charges than those with less impact. Furthermore, attacking the economic system seems to carry much more weight than challenging any other aspect of the system.
To me, this signals one thing: the economic system is the greatest vulnerability of governments, and they know it. It's their most powerful means of control, and it's also where we should focus our efforts.
To give you additional insight into how severely financial "crimes" are punished, Sholam Weiss was sentenced to 835 years in prison for racketeering, wire fraud, and money laundering. 835 years is insane.
How to keep you and your money safe ?
Keeping yourself and your money safe requires a careful balance of smart decisions and strong OPSEC (Operational Security). If you want to push back against government overreach and avoid financial exploitation, you must be well prepared. Fortunately, there are various techniques and strategies that can help you do just that.
This blog already features an in-depth article explaining how to keep your money safe. Here's a quick summary of the key points:
Don't look rich if you can't justify your income. It may seem basic, but it's a common mistake made by those committing tax evasion. If you recall, this was exactly what led to Al Capone's downfall. Human nature is vulnerable, and money can easily cloud judgment. A big house, a sports car, luxury vacations, all of these can expose you.
Cash isn't the safest option. Monero (XMR) is, if you know what you're doing.
Always self-custody your cryptocurrency. You should be the only person who holds the seed phrase to your Monero wallet. (And make sure to back it up securely.)
Set up a Monero wallet specifically for sensitive use. Never use a single wallet for everything. Maintain a warm wallet with only a small amount of XMR for daily or operational use, and a cold wallet (ideally kept offline) for storing larger amounts. This separation drastically reduces risk in case of compromise.
In addition to that, using a secure operating system is essential for maintaining your safety. Tails OS is one of the best choices for maintaining strong operational security. I recommend referring to this article, which outlines realistic OPSEC mistakes that could lead to your downfall.
Discretion is not only a matter of online security, it's also essential in real life. Staying discreet is the first and most important step when it comes to concealing your income. Statists are everywhere, and if someone suspects you're avoiding taxes, it could easily trigger a government investigation.
Conclusion
When it comes to tax evasion, we've seen that governments are extremely tough on it. They feel highly threatened and don't hesitate to impose harsh sentences, often designed to silence opponents and intimidate others. Moreover, governments use financial lawfare to punish individuals when they can't find anything else to charge them with. Tax laws are deliberately complex and vague, ensuring that governments always have some means to go after you.
If there's one thing you should worry about when fighting against governments, it's your finances. Keep them safe, secure, and discreet. Don't give the government the ammunition they'll use against you.
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Crabmeat 2025-07-15
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