Encrypto fund Translunar founder sentenced to 37 months for tax evasion, involving concealment of $7 million in income

Odaily reported that Justin Ryan Schmidt, founder of cryptocurrency investment fund Translunar Crypto LP, has been sentenced to 37 months in prison by a U.S. court for tax evasion. The U.S. Department of Justice stated that Schmidt, 46, pleaded guilty this year in federal court in Austin, Texas, to charges of underreporting his income between 2020 and 2022, declaring less than $5,000. However, prosecutors claimed that he actually earned over $7 million from his fund operations between 2019 and 2022. According to reports, Schmidt founded Translunar in 2017, primarily investing in blockchain startups, with funds mainly raised from investors in Austin, Texas, and Aspen, Colorado. The IRS Criminal Investigation Division arrested him on February 23, 2026, and he has been in custody since then. (Bloomberg)