The first conviction of BTC tax evasion in the United States! The court orders the surrender of 124 million US dollars BTC Private Key and sentenced to 2 years in prison.

Texas resident Frank Ahlgren III failed to truthfully report the income from BTC transactions, resulting in a government tax loss of over $550,000. He was sentenced to two years in prison and ordered to compensate $1.09 million. In addition, the court ordered him to surrender BTCPrivate Key and related storage devices worth over $124 million. (Background: BTC 'Jesus' Roger Ver was convicted of tax evasion and fraud, facing 'maximum sentence of 109 years,' supporters petition for pardon) (Additional context: Japan National Tax Agency: Cryptocurrency tax evasion cases surge! Unreported income surpasses 1.2 billion yen in 2022) Cryptocurrency transactions involving tax evasion or false reporting may lead to severe legal consequences in the U.S. A Texas resident was recently sentenced to two years in prison for underreporting BTC transaction income and was required to surrender BTCPrivate Key worth over $124 million, triggering widespread follow-up. $4 million in BTC transactions were not truthfully reported The defendant, Texas resident Frank Richard Ahlgren III, was found to have underreported or not reported BTC sales totaling about $4 million from 2017 to 2019, resulting in a government tax loss of over $550,000. The specific situations are as follows: BTC sales in 2017: Ahlgren sold about 640 BTC purchased for less than $500 each in 2015, with a total value of about $3.7 million (BTC was priced at about $5,807.53 per unit at the time). However, he significantly underreported the taxable capital gains by exaggerating the purchase cost. BTC sales in 2018-2019: Ahlgren sold over $650,000 worth of BTC during these two years. However, he did not report these transactions in his tax filings for these two years. In addition, Ahlgren employed various methods to conceal his trading profits, including dispersing BTC to multiple Wallets, conducting face-to-face BTC-to-cash exchanges with others, and using Coin Shuffle to conceal the identity of the transaction initiator. On September 12 last year, Ahlgren admitted to the charges and was sentenced three months later. Ultimately, he was sentenced to two years in prison, followed by one year of supervised release, and ordered to compensate the U.S. government $1,095,031. Judge orders surrender of Private Key According to Bloomberg, Judge Robert Pitman ruled on Monday that Ahlgren must surrender the Private Key and related devices containing encrypted assets, and disclose all Cryptocurrency accounts. In addition, the court prohibited him from transferring or selling any property without approval, but allowed for normal living expenses. The report further pointed out that in 2020, Ahlgren used a 'crypto tumbler' service to conceal at least 1,287 BTC, which are currently valued at over $124 million. The prosecutor emphasized in the request that Ahlgren's Virtual Money assets cannot be seized through conventional physical means, so the government requested: 'The court not only ordered the freezing of these Virtual Money, but also required the acquisition of the Private Key to ensure that the assets could not be transferred by others. Once the Private Key is lost or destroyed, these Virtual Money cannot be recovered.' This case is the first in the U.S. to convict someone of tax evasion in Cryptocurrency transactions, demonstrating the increasing emphasis of the U.S. government on Cryptocurrency tax Compliance. The case also serves as a warning to Cryptocurrency holders that both concealing assets and underreporting income are illegal behaviors that may lead to severe consequences such as imprisonment and asset confiscation. This case may become a typical example of future Cryptocurrency tax enforcement, especially regarding the use of Coin Shuffle.