Viral on Reddit: Did $2billion jackpot winner Edwin Castro from Altadena, California only receive $424 million after taxes?

When the Powerball jackpot hit a record $2.04 billion in November 2022, one man in Altadena, California became an overnight legend. Newspapers called it the largest lottery prize in history.

Social media called it proof that the government takes everything in taxes. And Reddit, predictably, got the math wrong.The viral post claimed the winner received only $424 million after taxes. It has been shared thousands of times as evidence that even billionaires are “properly taxed.” It sounds believable. It isn’t true.

The Real Numbers

The winning ticket belonged to Edwin Castro, who bought it at Joe’s Service Center in Altadena.

Like most jackpot winners, he chose the cash option instead of the 30-year annuity. That lump-sum payout was $997.6 million.From that amount, the federal government automatically withheld 24 percent in taxes, around $239 million. When Castro filed his return, he owed the top federal rate of 37 percent, bringing the total federal tax bill to about $369 million. That left him with an estimated $628.5 million.California does not tax lottery winnings, so there were no state deductions.

In short:

State taxes: noneFinal amount received: about $628 million

How Reddit Got It Wrong

The “$424 million after taxes” figure likely came from people applying both state and federal taxes to the entire $2 billion annuity amount instead of the actual cash payout. That’s like calculating income tax on your company’s next 30 years of projected revenue instead of on your current earnings. It looks dramatic, but it’s meaningless.The claim also fits a familiar online narrative that even lottery winners can’t escape taxation.

It’s easy to imagine a new billionaire watching most of their fortune disappear, but that image doesn’t match reality. The $2 billion number was never real cash; it was a long-term estimate based on bond yields. The actual payout was always under $1 billion.

What Happened to the Winner

Since the draw, Edwin Castro has used part of his winnings to buy several properties in Los Angeles and Altadena. He has faced paparazzi and lawsuits but avoided interviews or public appearances.

The man who once held the world’s most valuable lottery ticket now seems to prefer anonymity.Even after taxes, he remains one of the wealthiest individual lottery winners in U.S. history.

The Takeaway

The Reddit version makes for a punchier headline, but the truth is far more ordinary. The Altadena Powerball winner didn’t lose 80 percent of his prize to taxes. He took a lump sum, paid federal tax as required, and kept more than $600 million.

The gap between what people believe and what actually happened is about $200 million—proof that online outrage spreads faster than arithmetic.

Where is Castro now?

In 2025, Castro resurfaced in the news for using part of his fortune to rebuild his hometown of Altadena after devastating wildfires. He reportedly spent about $10 million purchasing 15 fire-damaged lots across Los Angeles County, including areas near the foothills of Altadena.

His plan, according to interviews and local reports, is to construct single-family homes for residents rather than investors, keeping prices reasonable and preserving the community’s character.

Some residents have praised his commitment to rebuilding, while others worry it could accelerate gentrification. One of Castro’s Malibu properties was destroyed in the January Palisades Fire, and those close to him say that loss partly motivated his decision to reinvest in reconstruction efforts.