Bitcoin Tax Fraud Warrants Two-Year Prison Sentence, Court Rules

Frank Richard Ahlgren III, an early investor in Bitcoin who pleaded guilty to filing a false tax return that underreported gains from his $4 million cryptocurrency sale, was sentenced to two years in prison by a federal judge.

Ahlgren was the first person charged with filing false tax returns that underreported and failed to report gains from the sale of cryptocurrency, according to the government’s sentencing memo filed Dec. 6. Judge Robert Pitman of the US District Court for the Western District of Texas on Thursday also ordered Ahlgren to serve on year of supervised release and pay $1.1 million ...