Both men were sentenced to 50 months in prison and ordered to pay $1.6 million each in penalties after pleading guilty to defrauding over 13,000 investors and failing to report the income to the IRS.
– The founders of a cryptocurrency company were sentenced to a combined eight years in federal prison for tax evasion after raising $24 million from investors, Acting US Attorney for the Northern District of Texas Chad E. Meacham announced Mar. 10.
“Crypto actors are required to pay their fair share of taxes, just like everyone else,” said U.S. Attorney Chad Meacham. “Not only did these defendants shirk their tax obligations, they lied to investors and made off with their millions. Anyone else contemplating such a scheme should know that the Justice Department and its law enforcement partners have a sharp eye on the cryptocurrency space, and we will not let criminal behavior slide.
About nine months after launching Bitqy, Bise and Mendez began marketing another token, BitqyM, arbitrarily priced at $1. They claimed buying the token allowed investors to join “Bitcoin mining operations,” by paying to power a Bitqyck Bitcoin mining facility in Washington state.Democratic Runoff In Texas Attorney General Race Set; Dallas Civil Rights Attorney Lee Merritt Concedes
By diverting income from Bitqyck for their own personal use, Bise and Mendez raked in about $4.68 million and $4.48 million, respectively, from 2016 to 2018.
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