Texas investor ordered to submit keys to $124m BTC fortune

Following his landmark conviction last year, a Texas court ruled that a Satoshi-era Bitcoin buyer must hand over the crypto keys to his $124 million stash.

U.S. District Judge Robert Pitman ordered early crypto investor Frank Richard Ahlgren III to turn over his private keys to his Bitcoin (BTC) wallet and other related digital asset storage devices.

Private keys are a cryptographic system that protects crypto wallets and gives the owner full access and control.

Judge Pitman’s order also prevented Ahlgren and any of his attorneys from moving cryptocurrencies or concealing digital assets from the court. Although Ahlgren was able to cover his monthly living expenses with crypto, the court’s decision aims to unlock approximately $124 million in digital assets attributed to Ahlgren and recover $1 million in court-approved damages, according to Bloomberg.

Ahlgren’s Bitcoin tax mistake

Ahlgren’s name became synonymous with the first crypto tax evasion case in the United States following his formal sentencing in late December. Federal prosecutors have filed a seven-count indictment against a BTC investor, alleging that he falsely reported capital gains from a $3.7 million BTC sale and willfully evaded taxes.

According to the Department of Justice, Ahlgren, also known by the pseudonym “Paco,” attempted to hide his blockchain footprint using complex financial tactics.

In a statement at the time, the DOJ emphasized that although the Bitcoin blockchain is public and immutable, some protocols allow users to hide their transactions to some degree. After a lengthy investigation and months-long trial, the Texas District Court sentenced Ahlgren to two years in prison.