Tuesday, September 16, 2025

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

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

MicroStrategy Buys More Bitcoin As It Sustains More Losses From Crypto Investment

MicroStrategy (Nasdaq: MSTR) announced on Tuesday its Q3 2022 financial results toplined by a quarterly...

Wednesday, November 2, 2022, 09:59:05 AM

Crypto Market Jitters as US Government Moves $2 Billion Worth of Silk Road BTC

A wallet labeled as belonging to the US government transferred nearly 28,000 BTC to an...
Tuesday, July 30, 2024, 02:50:00 PM

European Central Banks Throw Shade At Bitcoin, Launch Digital Euro Project

The European central bank is evidently focused on the topic of digital currencies. This morning,...

Wednesday, July 14, 2021, 08:45:13 AM

Coinbase Warns of Transaction Halts As Bitcoin Plummets

Coinbase (NASDAQ: COIN) seems to have been halting some transactions on its platform due to...

Wednesday, November 15, 2023, 01:36:00 PM

Binance Ends Stock Token Support Immediately Following Additional Regulatory Crackdowns

It appears that Binance is finally waving the white flag. The company this morning issued...

Friday, July 16, 2021, 08:49:10 AM