The Austin, Texas, man, Frank Richard Ahlgren III, started buying up bitcoins in 2011. In 2015, he upped his trading, purchasing approximately 1,366 using Coinbase accounts. He waited until 2017 before cashing in, earning $3.7 million after selling about 640 at a price more than 10 times his initial costs. Celebrating his gains, he bought a house in Utah in 2017, mostly funded by bitcoins he purchased in 2015.

Very quickly, Ahlgren sought to hide these earnings, the Department of Justice said in a press release. Rather than report them on his 2017 tax return, Ahlgren “lied to his accountant by submitting a false summary of his gains and losses from the sale of his bitcoins.” He did this by claiming that the bitcoins he purchased in 2015 were much higher than his actual costs, even being so bold as to claim he as charged prices “greater than the highest price bitcoins sold for in the market prior to the purchase of the Utah house.”