A Texas court has ruled that a Bitcoin investor from the Satoshi era must hand over the keys to his $124 million crypto holdings following a landmark conviction last year.
U.S. District Judge Robert Pitman has ordered Frank Richard Ahlgren III, an early crypto investor, to hand over the private keys to his Bitcoin wallet and any other devices used for storing digital assets.
Private keys are essential for securing crypto wallets, granting the owner full access and control over their funds.
The judge also prohibited Ahlgren and his associates from moving or hiding any cryptocurrencies or digital assets from the court. While Ahlgren is allowed to use crypto to cover his monthly living expenses, the court’s decision aims to unlock around $124 million in digital assets linked to him and recover $1 million in court-ordered damages, according to Bloomberg.
Frank Ahlgren Sentenced in Landmark U.S. Crypto Tax Evasion Case
Frank Richard Ahlgren III, also known as “Paco,” made headlines as the central figure in the first U.S. crypto tax evasion case following his sentencing in late December. Federal prosecutors charged Ahlgren with seven counts, accusing him of falsely reporting capital gains from a $3.7 million Bitcoin sale and intentionally evading taxes.
The Department of Justice revealed that Ahlgren attempted to cover his blockchain activity using advanced financial methods to obscure his transactions. While the Bitcoin blockchain is transparent and unchangeable, certain protocols can help mask transaction details, the DOJ noted in a statement.
After a lengthy investigation and trial, a Texas District Court sentenced Ahlgren to two years in prison.
Also Read: 14 U.S. States Begin Strategic Bitcoin Reserve Process This Month
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