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Crypto Firm Owners Convicted of Tax Evasion, Sentenced to 5 Years in Prison – Bitcoin News


The owners of a cryptocurrency firm that has collected nearly 24 24 million from more than 13,000 investors have pleaded guilty to tax evasion. “These crypto-intelligent defendants use an emerging technology, lie to their investors, pocket income and hide income from the IRS,” said acting U.S. Attorney Chad Macham.

The founders of the crypto firm could face up to five years in prison

The U.S. Department of Justice (DOJ) announced Tuesday that the owner of a cryptocurrency company has pleaded guilty to tax evasion.

Bruce Byss and Samuel Mendez, founders of Bitcoin, were charged in August with tax evasion. Bise pleaded guilty Sept. 9 and Mendez pleaded guilty Tuesday morning. DOJ details quoting the application form:

Mr. B. Byss and Mr. Mendez acknowledge that Bitcoin has raised about 24 24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants use Bitcoin funds at personal expense, including casino travel, cars, luxury home furniture, industry and rent.

“These crypto-intelligent defendants have exploited an emerging technology, lying to their investors, pocketing revenues and concealing revenues from the IRS,” described acting U.S. Attorney Chad Mecham.

The pair have promoted the company’s cryptocurrency, Bitcoin, “as a way to get rich for those who have dropped out of Bitcoin.”

A white paper posted on the Bitcoin website promised investors that each Bitcoin token would bring 1/10 of the Bitcoin common stock. However, Bais and Mendez acknowledged that they did not actually distribute the shares to the token holders or embed the shares in the Ethereum Smart Agreement.

About nine months after the launch of Bitcoin, Bais and Mendez began marketing another token, Bitcoin. They claim that buying tokens allows investors to join “bitcoin mining operations.” However, in reality, the pair have acknowledged that there has never been such a mining facility.

In addition, Bise and Mendez reported lower earnings to the IRS in 2016 and 2017. “The total U.S. tax loss between Mr. Baise and Mr. Mendez is joint and several বেশি 1.6 million more,” the Justice Department said in a statement.

The DOJ said:

Both men now face up to five years in federal prison.

Bitcoin has also entered into agreements with the US Securities and Exchange Commission (SEC). The company “agreed to pay a 3 3.3 million fine to settle claims that it had defrauded investors and conducted an unregistered digital asset exchange.” The DOJ added that as part of that settlement, Bais and Mendez “agreed to dismiss and pay লার 890,254 and $ 850,022, respectively.”

What do you think about this lawsuit? Let us know in the comments section below.

Image credit: Shutterstock, Pixabay, WikiCommons

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