For the first time in the history of the cryptocurrency market, a federal court in Texas has required an investor to transfer any cryptographic public and private keys and access to crypto wallets as part of a tax case. Frank Richard Algren III was found guilty of tax evasion in the amount of more than $1 million and sentenced to two years in prison.

The court ordered Algren and his representatives to provide public and private keys, devices for storing cryptocurrencies, as well as access to wallets containing Bitcoin, Ethereum and other assets. It was also prohibited to conduct any transactions with assets without court permission.

This case was the first where cryptocurrencies were at the center of criminal prosecution for tax fraud. In 2017, Algren sold bitcoins worth $3.7 million, but significantly underestimated the tax base, hiding part of the income. Later, he used mixers and multiple wallets to hide his transactions.