Translunar Crypto Fund Founder Sentenced to 37 Months for Tax Evasion on $7M Undisclosed Income

According to the U.S. Department of Justice, Justin Ryan Schmidt, 46, founder of crypto investment fund Translunar Crypto LP, was sentenced to 37 months in prison in July 2026 for tax evasion. Schmidt pleaded guilty in Austin federal court, Texas, after being charged with underreporting income between 2020 and 2022, claiming less than $5,000 when prosecutors said he actually earned over $7 million from his fund's operations during 2019–2022. The U.S. Internal Revenue Service Criminal Investigation division arrested Schmidt on February 23, 2026, and he has remained in custody since.
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