Aarni Otava Saarimaa, a Finnish 22-year-old Bitcoin millionaire, and his Thai partner has been conned out worth of $35 million by scammers in Thailand, 2017. Unfortunately, the misfortune of Saarimaa may continue in the future. Now – As if the scam wouldn’t be miserable enough, he is most likely advised to pay millions worth of taxes of the scammed cryptocurrencies.
According to laws and taxation in Finland, any trading is part of the taxation, like in this case, the high amount of taxes would be caused by the increased value of bitcoins.
The police of Thailand reported earlier, that the total of 5,564.4 bitcoins were taken by a thai criminal organisation. During that time, the value of the scammed cryptocurrencies were around 21 Million, but as the price has risen throughout the years, nowadays the value would have been over 30 million euros.
Saarimaa and his partner reported the crime to police last January, and the case became public in August 2018.
The Victims Bought Non-existing Shares
The Bangkok Post wrote earlier, that according to the victims they were tempted to invest millions of euros for the shares of three different Thai companies, casino and cryptocurrency called Dragon Coin. They followed the introductions, and transferred the amount of money in bitcoins for the suspected fraudsters.
In the interview with Bangkok Post Saarimaa told, that he never received any of the promised shares. Meanwhile, Chakrit Sawadsee, the Deputy Commander of Thailand’s Police CSD-unit commented, that the Finn would have received some of the agreed shares.
The suspected criminals exchanged the bitcoins into Thai batis, and transferred the money into various accounts managed by the suspects of this case. Among the account holders was a famous tv-actor Jiratpisit “Boom” Jaravijit.
and his relatives, and a well-known stock investor, Prasit Srisuwan.
The police reported, that at least nine people have been involved in the scam. The leader of the criminal organisation is suspected to be the brother of the television actor, and he is believed to have fled to the United States.
Some Suspected Have Been Released
After the arrest by the Thai police, the suspected actor and his sister are were released on bails. They are going to face at least charges of money laundering, after buying 14 properties worth of over 4.6 million euros. Both of them have been plead not guilty accusing their brother – who is believed to be in the U.S, to be guilty of organizing the scam.
In Thailand, all banks are advised to report every money transfer worth over 2 million bahts (35 000 euros) to AMLA – The Anti-Money Laundering Office.
The police stated, that the money transfers among the suspects of the fraud were made to the accounts of three different Thai banks. None of the employees in these banks reported any of the transferred, large amounts of money. Therefore the list of involved people in this case gets longer, as some of the bank employees are accused of not reporting the transfers.
Is Saarimaa Bounded to Pay Taxes of His Missing Bitcoins?
According to taxation guidance of the Finnish Tax Administration, the use of cryptocurrency in any exchange situation, realizes the taxation of the capital gain.
Following this instruction the increased value of Saarimaa’s bitcoins, might have caused the realisation of the taxation – which in this case, means that he would have to pay taxes worth of millions.
Saarimaa does not want to reveal how he got such a huge amount of bitcoins, although the explanation might be simple; he has been involved with bitcoin since 2010.
At the beginning of 2011 one Bitcoin cost only some tens of US cents. Many of the early crypto enthusiasts got wealthy as the value of bitcoin increased during the past years. Now one bitcoin is worth around $6,300 or 5,500 euros.
In Finland, the taxation of the capital income is 30 percent, and for value over 30 000 euros it goes up to 34 percent. If this is the case, that Saarimaa is forced to pay the capital income tax for the value-risen bitcoins, the amount would be enormous.
For example, if he would have bought his bitcoins on average price of ten euros, then the taxes of the missing 5,564 bitcoins would be more than 7.1 million euros.
Currently, Saarimaa is a taxpayer for two countries, Finland and primarily – Thailand.
Author: Sarah Tuuli