Join our Telegram channel to stay up to date on breaking news coverage
An early bitcoin investor from Austin, Texas, has been arrested for failing to report crypto capital gains related to the sale of around $3.7 million in btc.
Investor Frank Richard Ahlgren III “falsely reported (realized) capital gains” earned from the sale of approximately $3.7 million in btc between 2017 and 2019, the US Department of Justice (DOJ) said in a report on December 12. <a target="_blank" href="https://www.justice.gov/opa/pr/early-bitcoin-investor-sentenced-filing-tax-returns-falsely-reported-his-cryptocurrency”>report.
<img decoding="async" alt="bitcoin Traders Divided on Short-Term Price Rise After Jackson Hole – Decrypt” src=”https://img.decrypt.co/insecure/rs:fit:3840:0:0:0/plain/https://cdn.decrypt.co/wp-content/uploads/2024/07/bitcoin–btc-gold-gID_7.jpeg@webp”/><img decoding="async" src="https://img.decrypt.co/insecure/rs:fit:3840:0:0:0/plain/https://cdn.decrypt.co/wp-content/uploads/2024/07/bitcoin–btc-gold-gID_7.jpeg@webp” alt=”bitcoin Traders Divided on Short-Term Price Rise After Jackson Hole – Decrypt”/>
bitcoin investor started buying btc in 2011
Ahlgren began investing in btc in 2011. In 2015, he bought 1,366 Bitcoins on Coinbase, the leading US crypto exchange, when btc was trading below $500. Two years later, in 2017, the investor sold 640 btc at an average price of $5,807.53 before reinvesting $3.7 million in real estate.
However, authorities identified discrepancies in Ahlgren's 2017 federal income tax return. In its report, the DOJ said the investor “filed a false 2017 federal income tax return that substantially inflated the cost basis of the bitcoins, thereby underreporting his true capital gain from the sale of bitcoins.”
<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”10.891891891892″>
Texas resident Frank Richard Ahlgren III pleaded guilty to filing a false tax return that significantly underreported profits from the sale of $3.7 million worth of bitcoin. pic.twitter.com/GjnQYjhdla
—Ralph Mendoza, EA (@CryptoTaxesGuy) <a target="_blank" href="https://twitter.com/CryptoTaxesGuy/status/1849874998174851112?ref_src=twsrc%5Etfw”>October 25, 2024
Ahlgren also failed to report btc sales valued at more than $650,000 between 2018 and 2019. He allegedly attempted to conceal the movement of his funds using multiple crypto wallets, crypto mixers, and in-person cash transactions, according to the Department of Justice. “In total, the tax loss resulting from Ahlgren's criminal conduct exceeded $1 million,” the Justice Department said in the report.
First criminal prosecution for cryptocurrency-related tax evasion
Ahlgren was sentenced to two years in prison for failing to declare his profits from the btc sales. Acting Special Agent in Charge Lucy Tan of the Internal Revenue Service's Houston Criminal Investigation Field Office said this is the “first criminal tax evasion prosecution focused solely on cryptocurrency.”
In addition to the two-year prison sentence, the bitcoin investor was also ordered to serve one year of supervised release and pay $1.1 million in restitution to the US government.
Related articles:
The Newest Meme Coin ICO – Wall Street Pepe
- Audited by Coinsult
- Early Access Pre-Sale Round
- Private Trading Alpha for $WEPE Army
- Betting pool: Highly dynamic APY
Join our Telegram channel to stay up to date on breaking news coverage
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
