A federal court in Austin, Texas, ordered Frank Richard Ahlgren III to disclose private keys and provide access to BTC wallets in a tax fraud case.
The order comes after Ahlgren failed to declare capital gains of $3.7 million from Bitcoin sales between 2017 and 2019.
He was sentenced to two years in prison and $1.1 million in restitution.
On January 6, Judge Robert Pitman ordered Ahlgren to provide authorities with all private keys, seed phrases, and access codes for his crypto accounts, as well as any physical devices used to store them.
The order extends to Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC) cryptocurrencies.
Ahlgren, also known as “Paco,” pleaded guilty in September 2024 to filing a false tax return.
He admitted to inflating the cost basis of Bitcoin sold in 2017 to reduce taxable gains and failing to report subsequent sales in 2018 and 2019.
The indictment meticulously describes how Bitcoin transactions work, explaining that although the blockchain is public, Ahlgren attempted to conceal his activities using multiple techniques.