US Bitcoin Investor Sentenced to 2 Years in Prison for Evading Taxes
Key Points:
- Frank Richard Ahlgren, a US Bitcoin investor, was sentenced to two years in prison for failing to report $4 million in crypto capital gains.
- Ahlgren inflated the cost basis of his Bitcoin, omitted sales from tax returns, and used advanced tactics to conceal his activities.
The US Department of Justice (DOJ) said Frank Richard Ahlgren III, a Bitcoin investor from Austin, Texas, had been charged criminally in court on the grounds of failing to report major cryptocurrency capital gains for the first time.
Read more: DOJ Investigates Polymarket for Alleged Illegal US User Bets
US Bitcoin Investor May Face Jail in Groundbreaking Tax Evasion Case
Ahlgren’s case, which involved some $4 million worth of unreported transactions, illustrates a new wave in crypto-related tax enforcement.
Ahlgren, a US Bitcoin investor since 2011, has made a killing in cryptocurrency. In 2015, he bought 1,366 Bitcoins on Coinbase for less than $500 a coin. In 2017, he sold 640 Bitcoin for $3.7 million, using the proceeds to reinvest in a Park City, Utah luxury home. Between 2017 and 2019, he sold Bitcoin valued at $4 million but underreported or wholly omitted those gains on his tax returns.
Ahlgren was also found to have artificially inflated the cost basis for his Bitcoin position, fictitiously reporting higher purchasing prices with the intent of ultimately depressing his taxable income. All these manipulations, plus the failure to file $650,000 in Bitcoin sales for 2018 and 2019, added up to grave tax fraud.
Court Orders Over $1 Million Payment in Unpaid Taxes
The US Bitcoin investor had adopted sophisticated methods to avoid detection, including moving funds through several wallets, sending them via mixers, and exchanging cash for Bitcoin. These activities are traceable back to 2014 when he publicly supported mixers as a way to increase transaction anonymity.
US District Court Judge Robert Pitman then sentenced Ahlgren to two years imprisonment followed by a year’s supervised release. He was ordered to pay the government restitution in the amount of $1,095,031.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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US Bitcoin Investor Sentenced to 2 Years in Prison for Evading Taxes
Key Points:
- Frank Richard Ahlgren, a US Bitcoin investor, was sentenced to two years in prison for failing to report $4 million in crypto capital gains.
- Ahlgren inflated the cost basis of his Bitcoin, omitted sales from tax returns, and used advanced tactics to conceal his activities.
The US Department of Justice (DOJ) said Frank Richard Ahlgren III, a Bitcoin investor from Austin, Texas, had been charged criminally in court on the grounds of failing to report major cryptocurrency capital gains for the first time.
Read more: DOJ Investigates Polymarket for Alleged Illegal US User Bets
US Bitcoin Investor May Face Jail in Groundbreaking Tax Evasion Case
Ahlgren’s case, which involved some $4 million worth of unreported transactions, illustrates a new wave in crypto-related tax enforcement.
Ahlgren, a US Bitcoin investor since 2011, has made a killing in cryptocurrency. In 2015, he bought 1,366 Bitcoins on Coinbase for less than $500 a coin. In 2017, he sold 640 Bitcoin for $3.7 million, using the proceeds to reinvest in a Park City, Utah luxury home. Between 2017 and 2019, he sold Bitcoin valued at $4 million but underreported or wholly omitted those gains on his tax returns.
Ahlgren was also found to have artificially inflated the cost basis for his Bitcoin position, fictitiously reporting higher purchasing prices with the intent of ultimately depressing his taxable income. All these manipulations, plus the failure to file $650,000 in Bitcoin sales for 2018 and 2019, added up to grave tax fraud.
Court Orders Over $1 Million Payment in Unpaid Taxes
The US Bitcoin investor had adopted sophisticated methods to avoid detection, including moving funds through several wallets, sending them via mixers, and exchanging cash for Bitcoin. These activities are traceable back to 2014 when he publicly supported mixers as a way to increase transaction anonymity.
US District Court Judge Robert Pitman then sentenced Ahlgren to two years imprisonment followed by a year’s supervised release. He was ordered to pay the government restitution in the amount of $1,095,031.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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