Founders of Crypto ICO Sentenced to Combined 8 Years in Prison for Tax Evasion After Raising $24 Million from Investors

“Crypto actors are required to pay their fair share of taxes, just like everyone else. 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.”

“These criminals committed this scheme to thoroughly deceive and defraud stakeholders and the taxpaying public by cheating cryptocurrency investors. The IRS-Criminal Investigation Dallas Field Office is proud to be part of the team that is bringing them to justice and will continue to pursue those who unjustly enrich themselves by not paying their taxes.”

“By misrepresenting unregistered securities to investors who were lured with the appeal of owning shares of interest in a new and exciting marketplace, the defendants took advantage of unsuspecting individuals and defrauded them out of millions of dollars. Today’s sentencing saw justice served not only on the investors of cryptocurrency, but also on honest, hard-working American taxpayers who choose to pay their fair share of income taxes, rather than enriching themselves by evading their tax-paying responsibilities as both Mr. Bise and Mr. Mendez have done.”