NBA superstar Kevin Durant recently experienced a dramatic "memory recovery", unlocking hidden wealth worth $350 million for himself, and inadvertently becoming an important tax case for global encryption asset holders. This sudden massive wealth not only brought surprise but also immediately attracted the high attention of the U.S. tax system.

The origin of this wealth legend can be traced back nearly a decade. At that time, Durant purchased Bitcoin for the first time to watch YouTube videos, and later increased his holdings out of interest. However, he subsequently forgot the password to his Coinbase account. During these nine years of non-active holding, the price of Bitcoin skyrocketed from hundreds of dollars to $110,000, making his 3,000 Bitcoins worth $350 million.

However, when this dormant asset that has been asleep for many years is reactivated and prepared for redemption, from the perspective of the IRS, it is no longer merely a decentralized digital currency, but rather a "property" that requires explicit tax payment.

According to current U.S. tax law, Durant's profit from holding for more than a year qualifies as long-term capital gains. The calculation method for taxation is relatively straightforward: the taxable amount is determined based on the "sale price minus original cost" net gain. Durant's initial purchase cost for these bitcoins was approximately $1.95 million, so his capital gains are about $348 million.

At the federal level, long-term capital gains tax uses a tiered rate system (0%, 15%, 20%). Considering the scale of Durant's substantial earnings, most will be subject to the highest tax rate of 20%. Additionally, with a 3.8% net investment income tax imposed on high-income earners, federal taxes alone could reach approximately $83 million.

However, the real variable lies in the collection of state taxes. The specific tax rate in the state where Durant resides will have a significant impact on the final tax burden. This case not only reveals the enormous returns that cryptocurrency investments may bring, but also highlights the complexity and importance of relevant tax planning, providing a profound tax warning for global encryption asset holders.