Texas Court Orders Bitcoin Trader to Hand Over $124 Million in Encryption Keys

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Texas Court Orders Bitcoin Trader to Hand Over $124 Million in Encryption Keys

A Texas court has ordered Richard Algren III, an early Bitcoin investor, to hand over the private keys that control $124 million in cryptocurrency. This decision follows Ahlgren’s conviction in a groundbreaking case focusing on tax-related cryptocurrency fraud last year. This represents an important moment in the enforcement of digital asset laws.

Court ruling

U.S. District Judge Robert Pittman ruled that Ahlgren must disclose the encryption keys for his cryptocurrency wallets and identify all storage devices that contain digital assets. This action aims to recover $1 million in compensation owed to Ahlgren after his conviction.

🚨JUST IN: Texas man ordered by federal judge to hand over private keys to $124 million worth of cryptocurrencies

– BSCN Headlines (@BSCNheadlines) January 9, 2025

While the court allows limited access to funds for living expenses, it has prohibited Algren and his associates from transferring or hiding assets without prior approval.

Background of the case

Ahlgren, nicknamed “Paco”, confronted A.J A seven-count indictment in 2023 for misreporting capital gains from $3.7 million in Bitcoin transactions. Prosecutors from the Department of Justice (DOJ) revealed that Ahlgren used sophisticated blockchain technologies to hide the extent of his winnings and lied to his accountant about his earnings.

Acting Deputy Assistant Attorney General Stuart M. Goldberg Highlight Ahlgren’s efforts To conceal his activities, describing it as a critical case of cryptocurrency tax compliance.

Why is this important?

This case represents an example of how tax violations related to cryptocurrencies are dealt with. It shows that the government has the power to force individuals to provide access to digital assets when it comes to crimes.

The decision also reflects an increasing focus on crypto enforcement. According to blockchain intelligence firm Elliptic, US regulators are stepping up efforts as lawmakers work to create clearer rules for cryptocurrencies.