In what is another first for the cryptocurrency sector this year, one Bitcoin investor has been sentenced in what is the first crypto tax evasion case. Indeed, the US Department of Justice issued a press release detailing an Austin, Texas, native who failed to file taxes on $4 million in gains.
The BTC investor, Frank Richard Ahlgren, filed false tax returns and underreported gains made between 2017 and 2019, documents show. He had first invested in Bitcoin in 2011, with the press release highlighting several high-profile trades throughout the timeframe, resulting in a total tax loss of more than $1 million.
JUST IN: US #Bitcoin investor sentenced to two years in prison for evading taxes on $4 million gains, marking the first crypto tax evasion case.
— Watcher.Guru (@WatcherGuru) December 13, 2024
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Bitcoin Investor Gets 2-Year Prison Sentence for Evading Taxes on $4 Million in Gains
It is nearly impossible to overstate how important 2024 has been for the cryptocurrency industry. In January, Bitcoin became the first crypto-based ETF in the United States. Amid surging institutional investment interest, it had steadily increased in value. Yet, that was magnified in November, with the reelection of Donald Trump, when BTC reached six figures for the first time.
Now, a year of firsts continues, as one Bitcoin investor has been sentenced in what is the first crypto tax evasion case. Indeed, the US Department of Justice officially announced the sentencing of Frank Richard Ahlgren to two years in prison for falsely reporting capital gains that he earned from selling $3.7 million in BTC.
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The federal government requires all taxpayers to report any cryptocurrency sale that results in a gain or loss. Alghren purchased 1,366 BTC in 2015, when the asset was trading at a price of $495.56. Two years later, he sold 640 BTC at a price of a total of $5,807.53 per bitcoin. Specifically, the trade would net him $3.7 million.
The press release states that Alghren would use the funds to purchase property in Utah. Moreover, they note that most of the funds necessary for the sale had been obtained as far back as 2015. However, the trade had lied on his 2017 federal tax returns, submitting false summaries of both his gains and losses.
