Texas investor sentenced to two years after hiding BTC gains from taxman
A Texas bitcoin (BTC) investor is facing two years in prison after becoming the first person in history to be criminally charged for failing to report capital gains earned from crypto. According to a US Department of Justice (DoJ) report from December 12, Frank Richard Ahlgren III “falsely underreported the (realized) capital gains” earned from selling Bitcoin worth $3.7 million between 2017 and 2019. The report detailed how Ahlgren was an early investor in BTC and made his first purchases as early as 2011. In 2015, he bought approximately 1,366 BTC using his Coinbase account and sold 640 coins two years later for a total of $3.7 million. He reportedly used the proceeds to buy a house. When it came time for Ahlgren to prepare his 2017 tax return, he lied to his accountant by submitting a false summary of his gains and losses from the sale of his BTC. Specifically, he claimed that he bought the crypto at higher prices than he actually did, allowing him to underreport th...