TODAY: James Wynn says his UK bank accounts have been frozen without explanation, used to pay millions in taxes.James Wynn, a core developer and engineer for the Ethereum-based layer-2 scaling solution, Loopring. The situation stems from a wider and highly controversial investigation by HM Revenue and Customs (HMRC), the UK's tax authority.

The Investigation: HMRC is conducting a large-scale probe into individuals and entities they believe have failed to pay taxes on cryptocurrency transactions. Their method involves obtaining a "Production Order" from a court, which forces UK banks and financial institutions to hand over customer data and freeze accounts linked to the investigation.

The Allegation: HMRC alleged that James Wynn owed ~£1.2 million (approximately $1.5 million USD) in unpaid Capital Gains Tax related to his cryptocurrency activities. It's important to note that these are allegations, and the freezing order is a measure taken before any formal charges or proven guilt.

The Action: In late 2023, acting on this Production Order, UK banks (including HSBC and Barclays) froze the bank accounts of James Wynn and his family members. This included joint accounts and even accounts belonging to his wife's small business, severing their access to personal funds.