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<p><strong>Key Points:</strong></p>  
<ul class="wp-block-list">
 <li><em>Frank Richard Ahlgren, a US Bitcoin investor, was sentenced to two years in prison for failing to report $4 million in crypto capital gains.</em></li>  
 <li><em>Ahlgren inflated the cost basis of his Bitcoin, omitted sales from tax returns, and used advanced tactics to conceal his activities.</em></li> 
</ul>  
<h5 class="wp-block-heading">The <a href="https://coincu.com/230152-doj-cryptocurrency-enforcement-actions/" target="_blank" rel="noopener noreferrer nofollow">US Department of Justice (DOJ)</a> said Frank Richard Ahlgren III, a Bitcoin investor from Austin, Texas, had been charged criminally in court on the grounds of failing to report major cryptocurrency capital gains for the first time.</h5>  
<figure class="wp-block-image aligncenter size-large"><a href="https://coincu.com/wp-content/uploads/2024/12/On-Black-11.jpg" rel="noopener noreferrer nofollow"><img src="https://coincu.com/wp-content/uploads/2024/12/On-Black-11-1024x576.jpg" alt="US Bitcoin Investor Sentenced to 2 Years in Prison for Evading Taxes" class="wp-image-296897"></a>
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<h2 class="wp-block-heading" id="us-bitcoin-investor-may-face-jail-in-groundbreaking-tax-evasion-case">US Bitcoin Investor May Face Jail in Groundbreaking Tax Evasion Case</h2>  
<p><a href="https://www.justice.gov/opa/pr/early-bitcoin-investor-sentenced-filing-tax-returns-falsely-reported-his-cryptocurrency#:~:text=An%20Austin%2C%20Texas%2C%20man%20was,selling%20%243.7%20million%20in%20bitcoins." target="_blank" rel="noopener noreferrer nofollow">Ahlgren's case</a>, which involved some $4 million worth of unreported transactions, illustrates a new wave in crypto-related tax enforcement.</p>  
<p>Ahlgren, a US Bitcoin investor since 2011, has made a killing in cryptocurrency. In 2015, he bought 1,366 Bitcoins on <a href="https://coincu.com/294304-coinbase-usdc-earn-program-stops/" target="_blank" rel="noopener noreferrer nofollow">Coinbase</a> for less than $500 a coin. In 2017, he sold 640 Bitcoin for $3.7 million, using the proceeds to reinvest in a Park City, Utah luxury home. Between 2017 and 2019, he sold Bitcoin valued at $4 million but underreported or wholly omitted those gains on his tax returns.</p>  
<p>Ahlgren was also found to have artificially inflated the cost basis for his Bitcoin position, fictitiously reporting higher purchasing prices with the intent of ultimately depressing his taxable income. All these manipulations, plus the failure to file $650,000 in Bitcoin sales for 2018 and 2019, added up to grave tax fraud.</p>  
<h2 class="wp-block-heading" id="court-orders-over-1-million-payment-in-unpaid-taxes">Court Orders Over $1 Million Payment in Unpaid Taxes</h2>  
<p>The US Bitcoin investor had adopted sophisticated methods to avoid detection, including moving funds through several wallets, sending them via mixers, and exchanging cash for <a href="https://coincu.com/296778-bitcoin-spot-etf-inflows-hit-598m-with-11d/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin</a>. These activities are traceable back to 2014 when he publicly supported mixers as a way to increase transaction anonymity.</p>  
<p>US District Court Judge Robert Pitman then sentenced Ahlgren to two years imprisonment followed by a year's supervised release. He was ordered to pay the government restitution in the amount of $1,095,031.</p>  
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</figure>  <a href="https://coincu.com/?p=296894" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

US Bitcoin Investor Sentenced to 2 Years in Prison for Evading Taxes

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