ARTICLE
24 October 2024

First Stand-Alone Crypto Tax Fraud Case Leads To Guilty Plea

CW
Cadwalader, Wickersham & Taft LLP

Contributor

Cadwalader, established in 1792, serves a diverse client base, including many of the world's leading financial institutions, funds and corporations. With offices in the United States and Europe, Cadwalader offers legal representation in antitrust, banking, corporate finance, corporate governance, executive compensation, financial restructuring, intellectual property, litigation, mergers and acquisitions, private equity, private wealth, real estate, regulation, securitization, structured finance, tax and white collar defense.
On September 12, 2024, the U.S. Department of Justice ("DOJ") announced that Frank Richard Ahlgren III pleaded guilty to filing a false tax return ...
United States Tax

On September 12, 2024, the U.S. Department of Justice ("DOJ") announced that Frank Richard Ahlgren III pleaded guilty to filing a false tax return underreporting gains from selling $3.7 million in Bitcoin. As we discussed here, USA v. Ahlgren was the first crypto case with tax evasion allegations unrelated to another crime; it is now also the first stand-alone crypto tax fraud case to result in a guilty plea. Ahlgren faces up to three years in prison.

Ahlgren and the DOJ's case against Roger Ver (also known as "Bitcoin Jesus"), which we discussed here, underscore the DOJ's commitment to prosecuting crypto tax evasion. In light of these cases, crypto investors may wish to reevaluate their reporting and filing obligations to ensure compliance.

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