TechFlow news — On January 8, according to Bloomberg, Frank Richard Ahlgren III, the first U.S. investor convicted of tax-related crimes involving cryptocurrency transactions, has been sentenced to two years in prison and ordered to surrender access keys to his crypto assets. Court documents show Ahlgren was accused of concealing at least 1,287 bitcoins through mixing services, currently valued at over $124 million. He previously pleaded guilty to underreporting capital gains taxes on $3.7 million worth of Bitcoin transactions and was ordered to pay $1 million in restitution to the U.S. government for tax losses.
U.S. District Judge Robert Pitman in Austin, Texas, ordered Ahlgren to hand over the keys and devices storing these crypto assets and to disclose all cryptocurrency accounts. He is prohibited from transferring, selling, or depleting any assets without court approval, though he may use funds for ordinary living expenses. Ahlgren’s attorney, Dennis Kainen, said his client would comply with the court’s directives.
