Italian authorities have dismantled a €1 million tax evasion scheme involving Bitcoin Ordinals and BRC-20 tokens. The Economic and Financial Police Unit in Foggia identified a suspect who used these protocols to generate and conceal undeclared capital gains. The operation involved minting tokens, selling them at inflated prices, and reinvesting profits into new inscriptions to avoid tax reporting. Blockchain analytics firm Chainalysis, which revealed the findings, noted that the scheme exploited the Ordinals protocol to assign serial numbers to satoshis and embed data directly into Bitcoin transactions. Despite the innovative approach, Chainalysis emphasized that blockchain's immutable nature allows for tracing transactions back to individuals, highlighting the ongoing challenge for tax evaders. This case underscores a growing trend of using emerging token standards for tax evasion, prompting increased scrutiny from regulators worldwide. As new asset types proliferate, authorities are expected to focus more on the disparity between on-chain wealth and declared income.