An early Bitcoin investor was sentenced to two years in prison by a US court for falsely reporting income

The U.S. Department of Justice disclosed that Frank Richard Ahlgren III, a resident of Austin, Texas, was sentenced to two years in prison for falsely reporting $3.7 million in income from Bitcoin transactions. Court documents show that Frank Richard Ahlgren II began investing in Bitcoin in 2011 and purchased about 1,366 Bitcoins through Coinbase in 2015, with the highest price of about $495.56 that year. In October 2017, he sold 640 Bitcoins at a price of about $5,807.53 each, making a profit of $3.7 million to buy a house in Park City, Utah. In order to evade taxes, Ahlgren provided false transaction records to the accountant, falsely reporting that the purchase cost was much higher than the actual price. From 2018 to 2019, he concealed more than $650,000 in Bitcoin transaction records through multiple wallet transfers, face-to-face cash transactions, and mixers. The IRS Criminal Investigation Division and the Texas Attorney General's Office are currently conducting further investigations into the case. (justice.gov)