The Internal Revenue Service (IRS) has achieved its first criminal conviction focused on cryptocurrency tax evasion. Frank Richard Ahlgren III, a Texas resident, was sentenced to two years in prison and ordered to pay restitution of $1,095,031.

This case involved Ahlgren's concealment of over $4 million in Bitcoin sales, uncovered with the help of Chainalysis's blockchain analysis tools.

The collaboration between the IRS and Chainalysis highlights the increasing scrutiny on cryptocurrency transactions as part of efforts to combat tax evasion.