A man in Austin, Texas, has been sentenced to two years in prison for filing tax returns that misrepresented capital gains he earned from selling $3.70 million worth of bitcoin, the Department of Justice said. According to court documents and court statements, between 2017 and 2019, Frank Richard Ahlgren III filed false tax returns and underreported or failed to declare $4 million worth of bitcoin sales transactions in which he made significant gains. The regulatory section requires all taxpayers to report any sales gains and gains or losses from the sale of cryptocurrencies such as bitcoin on their tax returns. Lucy Tan, acting special head of the Houston office of the Internal Revenue Service's Bureau of Criminal Investigation (IRS-CI), said, "This case marks the first criminal tax evasion prosecution solely for cryptocurrencies." In addition to jail time, the man is also required to pay $1,095,031 in restitution to the United States.