An early Bitcoin investor lied about his earnings, causing the IRS to lose more than $550,000 in taxes and faces up to three years in prison

Odaily Odaily News: The U.S. Department of Justice (DOJ) recently announced that an early Bitcoin investor admitted to "submitting tax returns that falsely reported his cryptocurrency gains." Texas resident Frank Richard Ahlgren III admitted to underreporting his capital gains from the sale of $3.7 million worth of Bitcoin. According to court documents, Ahlgren purchased 1,366 Bitcoins in 2015, each worth no more than $500. In October 2017, he sold 640 Bitcoins for approximately $3.7 million and used the proceeds to buy a house in Park City, Utah. However, Ahlgren's 2017 tax return falsely overstated his cost basis for purchasing Bitcoin, thereby underreporting capital gains. In addition, he did not report $650,000 in Bitcoin sales in 2018 and 2019. The Department of Justice noted: "In total, Ahlgren caused the IRS more than $550,000 in tax losses." Ahlgren will be sentenced at a later date. He faces up to three years in prison, as well as a period of supervised release, restitution, and a fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors,” the Justice Department explained. (Bitcoin.com)