The Department of Justice (DOJ) announced Thursday that an early bitcoin investor has pleaded guilty to "filing a tax return that falsely reported his cryptocurrency gains." Texas resident Frank Richard Ahlgren III pleaded guilty to understating the capital gains he received from selling $3.70 million worth of BTC. According to court documents, Ahlgren purchased 1,366 bitcoins in 2015, each worth no more than $500. In October 2017, he sold 640 bitcoins for about $3.70 million and used the proceeds to buy a home in Park City, Utah. However, Ahlgren's 2017 tax return misstated the cost basis of his bitcoins, which allowed him to understate capital gains. Additionally, he did not report $650,000 in bitcoin sales in 2018 and 2019. The Ministry of Justice emphasizes that all taxpayers are required to report any sales proceeds and gains or losses from cryptocurrency sales.