A judge ordered a Bitcoin investor to disclose the private key of $124 million in BTC. The latter was sentenced to two years in prison for tax fraud last year.

Last month, early Bitcoin investor Frank Richard Ahlgren III was sentenced to two years in prison for tax fraud related to cryptocurrency sales. U.S. District Judge Robert Pitman ruled Monday in federal court in Austin, Texas that Ahlgren owes the government about $1 million in restitution in the criminal case and must turn over private keys and identify any devices used to store them, as well as disclose all of his cryptocurrency accounts. In December, prosecutors asked the judge to force Ahlgren to disclose the whereabouts of at least 1,287 bitcoins he moved through a "mixing" service in 2020. The value of those bitcoins has more than doubled over the past year and is now worth more than $124 million. Ahlgren agreed to pay the U.S. $1 million in restitution to make up for tax losses from underreporting capital gains from the sale of $3.7 million in Bitcoin. Prosecutors said he used part of the proceeds to buy a house in Park City, Utah. In their request, prosecutors said Ahlgren's property "is not capable of being seized by ordinary physical means." The government is asking for "not only to restrain any virtual currency in accordance with the court's order, but also to obtain the private key to make it accessible so that others cannot move it. If the private key is lost or destroyed, the virtual currency cannot be recovered." The judge's order states that Ahlgren cannot "squander", transfer or sell any property without the court's prior approval, but he can pay "normal monthly living expenses." Ahlgren pleaded guilty on September 12 last year and was sentenced on December 12. (Bloomberg)