Bitcoin Investor Must Hand Over Keys to $124 Million Crypto Cache

A federal judge has ordered an Austin Bitcoin investor to surrender passcodes to unlock cryptocurrency worth about $124 million, following his two-year prison sentence last month for tax fraud.

Frank Richard Ahlgren III must disclose the codes and identify storage devices for digital assets he allegedly moved through a cryptocurrency mixing service in 2020, US District Judge Robert Pitman ruled on Monday in Austin.

Ahlgren, who became the first American convicted of tax crimes solely related to cryptocurrency sales, was sentenced in December. He agreed to pay $1 million in restitution to cover tax losses from underreporting capital gains on $3.7 million in Bitcoin sales.

Federal prosecutors sought the court order in December to locate approximately 1,287 Bitcoin that Ahlgren transferred through a “mixing” service, which obscured the tokens’ trail. The value of these assets has more than doubled over the past year.

The judge’s order prohibits Ahlgren from transferring or selling any property without court approval, though he may continue to cover normal living expenses. Prosecutors emphasized in their request that cryptocurrency “cannot be attached by ordinary physical means” and warned that losing the private keys would make the virtual currency irretrievable.

“We will comply with a court directive,” said Dennis Kainen, Ahlgren’s attorney, noting they might seek clarification from the court if needed.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Military Seizes Power in Madagascar After President Flees

Altamira Gold Hits 395.5 Metres Of 0.4 g/t Gold At Maria Bonita

Related News

Does Elizabeth Warren Want a 1% Wealth Tax on Crypto?

News about a 1% wealth tax on crypto is going around after a crypto influencer...

Tuesday, April 23, 2024, 07:54:00 AM

PayPal’s Adoption of Bitcoin Appears To Have Had A Significant Effect On Bitcoin Pricing

PayPal’s mid-October launch of a new service which allows its U.S. users to shop with...

Sunday, November 29, 2020, 11:44:00 AM

Small Business Minister Admits Capital Gains Increase Could Chase Doctors Out, Encourages Foreign Credentials Instead

In a recent interview on Power & Politics with David Cochrane, Minister of Small Business...

Friday, April 26, 2024, 03:11:00 PM

Bitcoin At A Two-Month Low Following SpaceX Selloff, Liquidations, Regulatory Issues

Bitcoin witnessed a rapid decline of 7% within a mere 20 minutes on Thursday, momentarily...

Friday, August 18, 2023, 09:33:42 AM

MicroStrategy CEO On Its Own CFO’s US$21,000-Bitcoin Price Benchmark For Margin Call: “That’s All FUD”

MicroStrategy’s (Nasdaq: MSTR) bitcoin strategy is being threatened by the latest price crash, ushering in...

Wednesday, June 15, 2022, 10:21:00 AM