A major legal case in the US has wrapped up with Frank Richard Ahlgren III, an early Bitcoin
$104,517.66
investor, being sentenced to two years in prison.
Ahlgren, who is from Texas, was charged with not fully reporting the profits he made from selling Bitcoin between 2017 and 2019.
In addition to his prison time, Ahlgren will serve a year of supervised release and must pay $1.1 million back to the government. This case sends a strong message that tax evasion will not go unnoticed even in the crypto world.
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Ahlgren bought 1,366 Bitcoin in 2015 when prices were under $500 per coin, according to the Department of Justice (DOJ). In 2017, he sold 640 Bitcoin and made $3.7 million, which he then put into real estate.
However, problems came up when his tax filings showed he had inflated the original purchase price of the Bitcoin, making his profits look smaller. Furthermore, he did not report an additional $650,000 worth of Bitcoin sales in 2018 and 2019.
Stuart Goldberg, a DOJ tax official, said Ahlgren’s use of “sophisticated techniques” to hide his income caught up with him. He pointed out that Ahlgren went out of his way to deceive his accountant and federal authorities.
Ahlgren moved his money through several digital wallets and used crypto mixers to hide his transactions. The DOJ estimates that his tax evasion cost the government over $1 million.
Just like Ahlgren’s case, another high-profile lawsuit over Bitcoin and alleged tax fraud is making headlines. What’s the story behind Roger Ver’s legal battle? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
