Texas court orders Bitcoin investor to disclose $124 million in crypto keys
Ad Frank Richard Ahlgren III has been ordered by a Texas court to surrender access to his crypto wallets as part of tax evasion legal proceedings. He must provide private keys, seed phrases, and devices used for his digital assets. Ahlgren's associates are restricted from altering the value of his crypto holdings without court approval, except for essential living expenses. Ahlgren entered the Bitcoin market in 2011 and gained attention for tax-related activities starting in 2015, including purchasing 1,366 BTC and selling 640 BTC for $3.7 million while falsifying tax returns. He sold additional Bitcoin worth over $650,000 without IRS disclosure and used various methods to obscure transactions. In September 2024, he pleaded guilty and received a two-year prison sentence, followed by one year of supervised monitoring and $1 million restitution. The case underscores legal risks for crypto investors, emphasizing the importance of tax compliance to avoid severe penalties.
