The U.S. Department of Justice announced that the owners of a cryptocurrency firm, Bitqyck, have pleaded guilty to tax evasion.
Founders Pleaded Guilty to $1.6 Million Tax Evasion
Bruce Bise and Samuel Mendez pleaded guilty to tax evasion in August. They admitted to raising $24 million from over 13,000 investors and concealing income from the IRS.
Exploiting Emerging Technology
Bise and Mendez used the funds to fund personal expenses, including casino trips, luxury goods, and rent. They claimed Bitqyck was a way for those who missed out on Bitcoin to get rich.
Promoting the Company
The pair promoted Bitqyck as a way for those who missed out on Bitcoin to get rich. They promised investors 1/10th of a share of Bitqyck common stock.
Underreporting Income
Bise and Mendez underreported their income to the IRS in 2016 and 2017. They failed to file corporate tax returns despite netting over $3.5 million from investors.
Penalties and Settlement
The DOJ stated that both men