Canada’s Tax Authority Targets 2,500 Dapper Labs Users in $54M Crypto Probe

Canada Revenue Agency (CRA) has intensified its crypto tax enforcement, zeroing in on 2,500 users of Dapper Labs—creator of NBA Top Shot and Flow blockchain—over C$72 million ($54M) in alleged unpaid taxes. The investigation leverages a rare 'unnamed persons' court order, compelling the Vancouver-based NFT giant to disclose user data without implicating the company itself.

The MOVE reflects a broader CRA crackdown that has recovered C$100 million from crypto-related audits since 2021. Yet no criminal charges have been filed since 2020, highlighting Canada’s preference for civil remedies over prosecution in digital asset cases. Initially seeking data on 18,000 users, regulators narrowed the scope after negotiations with Dapper Labs.

Tax authorities worldwide are increasingly treating crypto transactions as taxable events. Canada’s approach—methodical but non-confrontational—contrasts with the U.S. IRS’s criminal indictments and suggests a regulatory middle path for NFT platforms and blockchain firms.