To give more info.

My friends situation is that they have no idea how much money they owe, the IRS does not know about this money because it's simply potential taxes owed during anonymous crypto trades, maybe. As far as the gov is concerned, they owe nothing because they aren't aware that anything even exists.

However, if in the future, crypto makes lots of holders now millionaires, in order to cash out, tons of money would be owed, that's not the problem. The problem lies in when the gov says "how did you get all of this" and it's stated that it was bought during the bear market (like this current one, and this is a hypothetical for the future) BUT you can't prove what you bought from it, and you might have owed money from like kind crypto trades.

So... because of that, and the fact the IRS is out to get innocent people just trying to make it out of poverty. The only solution is to revoke citizenship and move to another nation if crypto ever makes one a millionaire because they wont just accept you paying them taxes they ask for and move on. they'll try to make it like you're a criminal and you have to risk going to prison if you lose a legal battle at worse, or, pay crap tons of fees at best.