Bitcoin investor ordered to hand over private keys to $124 million worth of cryptocurrency

On January 8th, it was reported that the first Bitcoin investor in the United States convicted of tax crimes related to cryptocurrency trading, Frank Richard Ahlgren III, has been sentenced to two years in prison and ordered to surrender the keys to his cryptocurrency assets. Court documents show that Ahlgren was accused of hiding at least 1,287 bitcoins through a mixing service, which are currently worth over $124 million. He previously pleaded guilty to underreporting $3.7 million in capital gains taxes from bitcoin transactions and was ordered to pay $1 million in tax loss compensation to the US government.

Judge Robert Pitman of the Federal Court in Austin, Texas ordered Ahlgren to surrender the keys and devices storing these encrypted assets, and disclose all cryptocurrency accounts. He is prohibited from transferring, selling, or depleting any property without court approval, but can use it for normal living expenses. Ahlgren's lawyer, Dennis Kainen, stated that his client will comply with the court's orders.