TransLunar Crypto Fund Founder Sentenced to 37 Months in Tax Fraud Case

TL;DR:

• Justin Ryan Schmidt was sentenced to 37 months in prison and ordered to pay $3.4 million in tax restitution by a federal court in Austin, Texas.
• The executive reported annual income under $5,000 between 2020 and 2022, after earning more than $7 million from his investment fund.
• Schmidt renounced his US citizenship in March 2022 to relocate to the Cayman Islands and evade tax obligations on his assets.

For a tax evasion scheme, a Federal Court sentenced Justin Ryan, founder of TransLunar Crypto Fund, to 37 months in prison. The ruling was made public last Monday by District Judge Robert Pitman in Austin, Texas, following Schmidt’s guilty plea. The judicial resolution additionally establishes the payment of approximately $3.4 million in restitution.

The Department of Justice reported that the executive concealed more than $7 million earned through managing the fund between 2019 and 2022. However, in the tax returns corresponding to the 2020, 2021, and 2022 fiscal years, Schmidt claimed to have recorded net income of less than $5,000 annually.

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