In a landmark ruling, a Texas federal court has ordered Bitcoin investor Richard Ahlgren III to surrender encryption keys unlocking $124 million in crypto. Ahlgren, convicted of tax evasion for failing to report $3.7 million in Bitcoin sales, must also disclose devices used to store crypto and is barred from transferring assets without court approval. This precedent-setting case highlights the government’s efforts to enforce crypto tax compliance, targeting sophisticated attempts to obscure blockchain transactions. Ahlgren faces two years in prison and must pay $1 million in restitution following his December conviction.
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