Crypto users fooled by fake Elizabeth Warren letter proposing crypto tax

The fake letter addressed to U.S. President Joe Biden suggested a 1% wealth tax on crypto holdings exceeding $500,000.

Many social media users appeared to be fooled by an anti-crypto policy proposed by Massachusetts Senator Elizabeth Warren. The problem is the letter containing the proposal was fake.

On April 21, many on Crypto Twitter erupted in dismay at a seemingly real letter from Senator Warren to United States President Joe Biden. The letter — which misspelled the senators first name — proposed a 1% wealth tax on crypto holdings exceeding $500,000.

Source: Dennis Porter

The letter called for President Biden to support crypto-related legislation from Senator Warren as part of efforts to address issues in the U.S. financial system. Even after many on social media pointed out discrepancies between the letter and reality, some crypto users seemed to refuse to acknowledge the truth.

“Could be [not true] but shes the type to ask that,” said DonCryptoDraper.

No such letter appeared on Senator Warrens website at the time of publication. Cointelegraph reached out to her office for comment but did not receive a response at the time of publication.

The Massachusetts senator is one of the more vocal anti-crypto voices in Congress, often associating digital assets with illicit activities, including the financing of terrorism. One of her proposed bills, the Digital Asset Anti-Money Laundering Act, has been critized by many crypto advocates and lawmakers for being ineffective in stopping illicit financing.

Warren is up for reelection in November and will likely face off against Republican candidate and crypto lawyer John Deaton. He raised roughly $1.36 million for his campaign — $1 million from his own pockets — in the first quarter of 2024 compared to Warren‘s $1.09 million. Deaton has also requested to serve as a friend of the court in Coinbase’s civil lawsuit with the U.S. Securities and Exchange Commission.