{"id":610035,"date":"2024-12-13T12:26:13","date_gmt":"2024-12-13T12:26:13","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=610035"},"modified":"2024-12-13T12:26:13","modified_gmt":"2024-12-13T12:26:13","slug":"early-bitcoin-investor-arrested-for-failing-to-report-capital-gains-from-3-7-million-btc-sales-between-2017-and-2019","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/early-bitcoin-investor-arrested-for-failing-to-report-capital-gains-from-3-7-million-btc-sales-between-2017-and-2019","title":{"rendered":"Early Bitcoin Investor Arrested For Failing To Report Capital Gains From $3.7 Million BTC Sales Between 2017 And 2019"},"content":{"rendered":"

An early Bitcoin investor from Austin, Texas, has been arrested for failing to report crypto capital gains involving the sale of around $3.7 million worth of BTC.<\/span><\/p>\n

Investor Frank Richard Ahlgren III “falsely underreported (realized) capital gains” earned from the sale of approximately $3.7 million in BTC between 2017 and 2019, the US Department of Justice (DOJ) said in a Dec. 12 <\/span>report<\/span><\/a>.<\/span><\/p>\n

\"Bitcoin<\/p>\n

Bitcoin Investor Started Buying BTC Back In 2011<\/span><\/h2>\n

Ahlgren started investing in <\/span>BTC<\/span><\/a> in 2011. In 2015, he purchased 1,366 Bitcoins on the leading US crypto exchange Coinbase when BTC was trading under $500. Two years later in 2017, the investor then sold 640 BTC at an average price of $5,807.53 before reinvesting $3.7 million into real estate.<\/span><\/p>\n

However, authorities identified discrepancies in Ahlgren’s 2017 federal income tax return. In their report, the DOJ said the investor “filed a false 2017 federal income tax return that substantially inflated the cost basis of the bitcoins, thereby underreporting  his true capital gain from his sale of bitcoins.”<\/span><\/p>\n

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Frank Richard Ahlgren III, a Texas resident, has pleaded guilty to filing a false tax return that significantly underreported gains from selling $3.7 million worth of Bitcoin. pic.twitter.com\/GjnQYjhdla<\/a><\/p>\n

— Ralph Mendoza, EA (@CryptoTaxesGuy) October 25, 2024<\/a><\/p><\/blockquote>\n