US Sentences Crypto Hedge Fund Operator to 37 Months for Tax Evasion

Cryptocurrency Hedge Fund Operator Sentenced for Tax Evasion

A federal judge handed Justin Ryan Schmidt, operator of Translunar Crypto LP, a 37-month prison sentence for tax evasion. Schmidt reported under $5,000 in annual income while actually earning over $7 million from his fund between 2019 and 2022.

The Justice Department stated that Schmidt gave up his U.S. citizenship in March 2022 and moved to the Cayman Islands, submitting a fraudulent tax return that misrepresented his net worth at that time.

Prosecutors noted that following his arrest, Schmidt claimed to be unmarried and have a net worth of negative $1.1 million, but it was revealed that he is actually married to a British citizen who resides in the Cayman Islands, and his current net worth exceeds $5.8 million.