On September 12, 2024, the U.S. Department of Justice (“DOJ”) announced that Frank Richard Ahlgren III pleaded guilty to filing a false tax return underreporting gains from selling $3.7 million in Bitcoin. As we discussed here, USA v. Ahlgren was the first crypto case with tax evasion allegations unrelated to another crime; it is now also the first stand-alone crypto tax fraud case to result in a guilty plea. Ahlgren faces up to three years in prison.
Ahlgren and the DOJ’s case against Roger Ver (also known as “Bitcoin Jesus”), which we discussed here, underscore the DOJ’s commitment to prosecuting crypto tax evasion. In light of these cases, crypto investors may wish to reevaluate their reporting and filing obligations to ensure compliance.
