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Satoshi Era Bitcoin Investor Gets 2 Years in Prison for Tax Evasion

Author: Content Editor
A Bitcoin investor from the Satoshi era has been sentenced to two years in federal prison for falsifying tax returns. Frank Richard Ahlgren III, who bought 1,366 BTC in 2015, submitted inaccurate tax filings between 2017 and 2019, underreporting his gains from BTC sales totaling $4 million. Ahlgren used fabricated figures to inflate the purchase prices of the BTC he sold, allowing him to significantly lower his taxable income. He also employed complex methods such as using multiple wallets, cash exchanges, and mixers to hide his activities. The IRS uncovered his actions and cited the case as a demonstration that cryptocurrency transactions are traceable. Ahlgren has been ordered to pay over $1 million in restitution and serve one year of supervised release after his prison term. The investigation was conducted by the IRS-CI and the Texas Office of Attorney General, with prosecution handled by the Department of Justice's Tax Division and the U.S. Attorney's Office for the Western District of Texas.

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