Translunar Co-Founder Sentenced to Prison for Tax Evasion

Justin Ryan Schmidt, co-founder of cryptocurrency-focused hedge fund Translunar Crypto LP, was sentenced to 37 months in prison for tax evasion. The US authorities announced the verdict on July 28, 2026.

Schmidt pleaded guilty earlier this year in federal court in Austin, Texas. According to prosecutors, Schmidt reported earning less than $5,000 from his fund between 2020 and 2022, when in reality he earned over $7 million from 2019 to 2022.

The false reporting occurred after Schmidt renounced his US citizenship. The authorities stated that by doing so, he attempted to evade paying taxes on his substantial income.