[Bitcoin investor faces jail time for underreporting cryptocurrency gains] The U.S. Department of Justice (DOJ) announced on Thursday that an early Bitcoin investor has pleaded guilty to "submitting tax returns that falsely reported his cryptocurrency gains." Texas resident Frank Richard Ahlgren III admitted to underreporting the capital gains he made from selling $3.7 million worth of BTC. 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 approximately $3.7 million and used the proceeds to buy a house in Park City, Utah. However, Ahlgren's 2017 tax return falsely reported the cost basis of his Bitcoin, which caused him to underreport capital gains. In addition, he did not report $650,000 in Bitcoin sales in 2018 and 2019. The Department of Justice emphasized: All taxpayers must report any sales proceeds and gains or losses from cryptocurrency sales.