Bitcoin Millionaire Jailed For Crypto Tax Evasion
A Bitcoin investor was sentenced in the first cryptocurrency tax evasion case, marking yet another first for the industry. A press release from the US Department of Justice described an Austin native, Texas, who neglected to report $4 million in gains.
Frank Richard Ahlgren was sentenced to two years in prison by the US Department of Justice for fraudulently declaring the capital gains from the sale of $3.7 million worth of Bitcoin.
Taxpayers who sell cryptocurrency and make a profit or loss are mandated to report such transactions. The asset was trading at $495.56 when Alghren bought 1,366 Bitcoin in 2015. After two years, he sold 640 bitcoins for $5,807.53 each. He would specifically receive $3.07 million from the trade.
He underreported gains made between 2017 and 2019 and filed false tax returns. He made his first Bitcoin investment in 2011, and the press release highlighted a number of high-profile trades that occurred during that time, leading to a total tax loss of over $1 million.
Alghren would use the money to buy real estate in Utah. Furthermore, they point out that most of the capital required for the sale was already acquired in 2015. However, the trade submitted false summaries of his gains and losses on his 2017 federal tax returns.
Bitcoin was the first cryptocurrency-based exchange-traded fund (ETF) in the world’s biggest economy. BTC’s value had risen steadily amid a surge in institutional investment interest. However, that was amplified in November when Bitcoin hit six figures for the first time following Donald Trump’s reelection.
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