Too bad for the IRS they can't prove ownership of cryptocurrency... they might have a case, under their own terms at least. Unfortunately for them, My records show that I sold all my BTC and most of it at a loss. SO they'd be barking up an empty tree... That being said, we should work to have bitcoin classified as something like a ROTH IRA or merely a currency (rather than an asset) because most of us buy it with our already taxed income, after our paychecks are taxed. That is, we already paid taxes! Also, if they wanted to come after us and lock us up for "tax evasion" we'd get free room and board for a while and if we kept our crypto hidden, we'd come out far richer than we went in. LOL.
Also, while we're filing Capital Loss for the year due to theft, we should file ALL the money stolen by taxes as "Capital Loss due to theft."