A Texas Bitcoin investor, Frank Richard Ahlgren III, has been sentenced to two years in prison for tax fraud. He falsely reported capital gains from Bitcoin sales amounting to over 3.7 million USD. The court has ordered him to surrender all cryptocurrency, along with any devices, keys, and passwords involved in their storage.

Under a restraining order, Judge Robert Pitman has prohibited any cryptocurrency transfers by Ahlgren without prior court approval. This measure ensures that no digital assets are hidden or their values reduced. This case is notable for being the first criminal tax fraud prosecution directly linked to cryptocurrency usage.