Bitcoin (BTC) Investor from the Satoshi Era Got Caught, Sentenced to Two Years in Prison!

Bitcoin and cryptocurrencyWhile the tax debate continued in the 1990s, an early BTC His investor was sentenced to two years in prison for tax fraud.

Frank Richard Ahlgren, a Texas investor who bought Bitcoin during the Satoshi era He was sentenced to two years in prison for underreporting $3.7 million in gains from selling Bitcoin from 2017 to 2019.

US Department of Justice (DOJ), In his statement, he stated that during strict checks, Frank Richard Ahlgren filed false tax returns between 2017 and 2019, under-reporting or not reporting the sale of $ 4 million worth of Bitcoin, from which he made significant profits.

In October 2017, Ahlgren sold approximately 640 Bitcoins for approximately $5,807.53 for a total of $3.7 million and used the proceeds to purchase a home in Park City, Utah.

When it came time to file his 2017 federal income tax return, Ahlgren reported that he purchased the BTCs he sold at much higher prices than they actually were in order to hide the full size of his Bitcoin gains.

Ahlgren also sold BTC in 2018 and 2019, but never reported these sales on his 2018 and 2019 tax returns.

The DOJ also stated that Ahlgren used mixers and wallet transfers to hide funds, resulting in more than $1 million in tax losses.

At this point, the DOJ added that Ahlgren must pay $1.1 million in damages to the US government.

Acting Assistant Attorney General Stuart M. Goldberg of the Department of Justice Tax Division said:

“Frank Ahlgren made millions of dollars buying and selling Bitcoin.

But instead of paying the taxes he knew he was due, he lied to his accountant about the size of a large portion of his earnings and attempted to hide a further portion of his profits by using complex techniques designed to hide his transactions on the bitcoin blockchain. “This behavior led to him being sentenced to two years in prison today.”

*This is not investment advice.