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Cryptopolitan 2025-01-08 11:15:18

Bitcoin investor sentenced for tax fraud ordered to surrender $124M crypto passcodes

United States law has caught up with Frank Richard Ahlgren III, who was found guilty of tax crimes related to cryptocurrency transactions and sentenced to two years. The Bitcoin investor has also been ordered to surrender the passcodes to access his $124 million digital assets . In Ahlgren III’s charge sheet, he was accused of hiding almost 1,287 BTC, worth $124 million, using mixing services. He pleaded guilty to underreporting $3.7 million in capital gains from Bitcoin transactions, which warranted him to pay $1 million in tax loss reparation to the US government. The court must authorize Ahlgren III’s transactions The prosecutors handling Ahlgren III’s case had argued that the accused’s property could not be attached by ordinary physical means. On behalf of the American government, they requested the court to restrain any virtual currency and issue an order to obtain the passcodes so that they can access the accounts to ensure no one moves the cryptos. They clarified that nobody can retrieve the digital assets if the passcodes are lost or destroyed. The US District Judge of the Western District of Texas, Robert Pitman granted the prosecutor’s wishes. He ordered Ahlgren III to surrender the passcodes and any devices he used to store the digital assets. He was further ordered to disclose all of his cryptocurrency wallets. Also, Ahlgren III cannot “dissipate,” dispose of, or transfer any property unless the courts approve. However, he can freely spend on normal monthly routine expenses. Ahlgren III stated that he would abide by the court rulings Ahlgren III’s attorney, Dennis Kainen, said that his client is willing to comply with the orders issued by the court. Ahlgren III pleaded guilty on September 12 and saw his sentencing on December 12. We will comply with a court directive, or to the extent that we have a question, we will direct it to the court. We appreciate Judge Pitman’s care throughout this case. ~ Dennis Kainen Ahlgren III’s case has set a precedent that may affect even small crypto holders. The government has always convicted big players in the crypto space who have been associated with significant crimes. From Zero to Web3 Pro: Your 90-Day Career Launch Plan