Spanish DeFi Investor Faces $10.5 Million Back Tax Bill for Cryptocurrency Loan

A Spanish cryptocurrency investor has been hit with a hefty back tax bill of €9 million ($10.5 million) after taking out a loan using their crypto assets. According to reports from local media outlet Periodista Digital, the investor initially declared all cryptocurrency activity and paid $5.84 million in taxes. However, authorities issued an additional bill based on the act of depositing funds into a DeFi protocol for the loan, not realizing any profits. This decision has been challenged by experts who argue that the tax agency is incorrectly classifying these actions as taxable income.