I think the more subtle question is about assets you got via a prize. For example if you win a real-world lottery, you have to pay taxes on the winnings. If you

I think the more subtle question is about assets you got via a prize. For example if you win a real-world lottery, you have to pay taxes on the winnings. If you win a crypto lottery, you have to pay taxes on the winnings (at the time of winning, not at the time of cash out!). If you "win" a loot-crate lottery, do you have to pay taxes on your winnings? And afact the answer is no, because the loot crate thing isn't an asset, it's treated more like a consumable good. On the other hand, I can see the argument that in fact it's an illiquid asset (like pre-IPO stock) and so you need to pay taxes on the income immediately. On the off chance you later sell your account, you should pay taxes on that income and it mostly comes out in a wash, unless the value of the lootbox item has changed significantly (because no one plays fortnite anymore)