🌋 Court Orders Bitcoin Millionaire to Reveal Private Keys
posted 18 hr ago
A U.S. court has ordered Bitcoin investor Frank Richard Ahlgren III, convicted of tax fraud, to hand over private keys to his cryptocurrency wallets as part of a $1 million restitution order.
The ruling also requires Ahlgren to disclose all devices containing Bitcoin valued at $124 million and prohibits him from managing these assets without prior court approval, aside from standard monthly expenses. These restrictions are expected to remain in place for the duration of his two-year prison sentence.
Authorities faced challenges tracking Ahlgren’s assets due to his use of a cryptocurrency mixer, a tool that obscures the origin of funds by blending transactions from multiple users. Investigators believe he transferred Bitcoin through a mixer in 2020 and has not moved the funds since.
Prosecutors argued that without access to the private keys, recovering restitution would be impossible, as Ahlgren’s remaining assets, including a home purchased with underreported Bitcoin sale proceeds, are insufficient to cover the tax damages. However, compliance seems certain, as Ahlgren has agreed to follow the court’s order.
We will comply with a court directive, or to the extent that we have a question, we will direct it to the court. We appreciate the care that Judge Pitman has taken throughout this case,said Ahlgren’s attorney, Dennis Kainen.
Algren is the first American to be convicted of tax fraud involving cryptocurrencies. He pled guilty on September 12, 2024, and was sentenced three months later to two years in prison along with a restitution order. This case underscores the government’s ability to compel convicted individuals to disclose private keys to cryptocurrency wallets.
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