Published Sep 5, 2026, 8:00 AM ET · Updated 2 months ago · 1 source
How the “buy, borrow, die” tax trade is quietly loading DeFi pools with hidden credit risk
CryptoSlate
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Original Report
Imagine someone who bought ETH for $1,000, watched it climb to $4,000, and now wants to cash out $1,000. Selling one-quarter of the ETH would provide the cash, but it would also realize a $750 gain under US tax treatment of digital assets held for investment. However, DeFi offers another way. The owner can deposit […] The post How the “buy, borrow, die” tax trade is quietly loading DeFi pools with hidden credit risk appeared first on CryptoSlate.