Wu said that according to News.bitcoin, the U.S. Department of Justice (DOJ) recently announced a case in which an early Bitcoin investor admitted to submitting a tax return that falsely reported his cryptocurrency gains. Texas resident Frank Richard Ahlgren III admitted to underreporting his capital gains from the sale of $3.7 million worth of Bitcoin. According to court documents, Ahlgren purchased 1,366 bitcoins in 2015, each worth no more than $500. In October 2017, he sold 640 bitcoins for a total price of approximately $3.7 million. However, Ahlgren falsely overstated his cost basis for purchasing Bitcoin in his 2017 tax return, thereby underreporting capital gains. In addition, he did not report $650,000 in Bitcoin sales in 2018 and 2019. The Department of Justice pointed out that Ahlgren caused more than $550,000 in tax losses to the IRS and will face up to three years in prison, as well as a period of supervised release, restitution and fines.