TransLunar Crypto Fund Founder Sentenced to 37 Months for Tax Evasion

Justin Ryan Schmidt, founder of TransLunar Crypto Fund, has been sentenced to 37 months in prison for tax evasion. The Federal Court in Austin, Texas, ordered him to pay $3.4 million in restitution.

Schmidt concealed over $7 million earned from managing the fund between 2019 and 2022, while reporting annual income under $5,000 on his tax returns for 2020, 2021, and 2022.

In March 2022, Schmidt renounced his US citizenship to relocate to the Cayman Islands, where he established residency. He submitted a false net worth statement to the IRS during this process.

Prosecutors documented that Schmidt sold real estate in Snowmass Village, Colorado, for $9 million just three months after purchasing it for $5.8 million, with altered tax information submitted to evade capital gains taxes.