A Bitcoin investor was sentenced to hand over $124 million worth of cryptocurrency private keys

On January 8th, Frank Richard Ahlgren III, the first bitcoin investor in the United States to be convicted of crypto-asset trading tax crimes, has been sentenced to two years in prison and ordered to hand over the keys to access his cryptocurrency assets.
Ahlgren is accused of hiding at least 1,287 bitcoins, which are currently worth more than $124 million, through a coin mixing service, according to court documents. He previously pleaded guilty to underreporting capital gains taxes on $3.70 million bitcoin transactions and was ordered to pay the US government $1 million in damages for tax losses.



Judge Robert Pitman of the United States Federal Court in Austin, Texas, ordered Ahlgren to hand over the keys and equipment used to store the crypto assets and to disclose all crypto accounts. He is prohibited from transferring, selling or depleting any property without court approval, but it can be used for normal living expenses. Ahlgren's lawyer, Dennis Kainen, said his client would comply with the court's order.