The post Early Bitcoin investor jailed for falsely reporting crypto gains in $4M BTC sale appeared on BitcoinEthereumNews.com.

A Bitcoin investor from Texas has become the first person to be imprisoned for failing to disclose crypto gains. The individual in question was sentenced to two years in jail today for filing a tax return that falsely underreported his capital gains from selling $3.7 million in Bitcoin. According to the US Department of Justice (DOJ), Frank Richard Ahlgren III, a Texas-based Bitcoin investor, “falsely underreported the (realized) capital gains” gained by selling Bitcoin worth $3.7 million from 2017 to 2019.  In a report released on December 12, the Department of Justice stated: “All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as Bitcoin, on a tax return.” Bitcoin investor takes pride in playing the government As per the details provided in a US court, Frank Richard Ahlgren started investing in Bitcoin in 2011. Ahlgren then used his Coinbase accounts to acquire approximately 1,366 bitcoins in 2015.  The highest price that Bitcoins sold for that year was approximately $495.56. Ahlgren sold approximately 640 Bitcoins in October 2017, at a price of approximately $5,807.53 per Bitcoin, for a total of $3.7 million.  Ahlgren submitted a fake summary of his gains and losses from the sale of his crypto to his accountant when it was time to prepare his 2017 federal income tax return. In order to conceal the full extent of his gain, Ahlgren claimed that he purchased the Bitcoins at prices significantly higher than those he actually paid. “Frank Ahlgren III earned millions buying and selling Bitcoins,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “But instead of paying the taxes he knew were due, he lied to his accountant about the extent of a large portion of his gains, and sought to…

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Filed under: News - @ December 13, 2024 3:23 pm