Frank Richard Ahlgren III, a man from Austin, Texas, has been sentenced to two years in prison for falsely reporting his capital gains from selling $3.7 million worth of bitcoin. Ahlgren, who began investing in bitcoin in 2011, sold 640 bitcoins in October 2017 for a total gain of $3.7 million. He used the proceeds to purchase a home in Park City, Utah.
However, when filing his 2017 tax return, Ahlgren misrepresented the gains by inflating the cost basis of his bitcoin purchases, claiming he had acquired the coins at higher prices than market rates. This misreporting significantly reduced the reported capital gains. Between 2018 and 2019, Ahlgren sold additional bitcoins worth over $650,000 but failed to report these transactions on his tax returns entirely.
He attempted to conceal his gains by transferring funds through multiple wallets, exchanging bitcoin for cash in person, and using mixers to anonymize his bitcoin transactions. In total, the DOJ stated that Ahlgren’s actions resulted in a tax loss exceeding $1 million.
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<p>The post Bitcoin Investor Sentenced to Prison for Tax Evasion first appeared on CoinBuzzFeed.</p>
