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Tax Evasion: Crypto ICO Founders Plead Guilty for Raising $24 Million from Investors

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Cryptocurrency founders have pleaded guilty to tax evasion for raising $24 million from investors. Bitqyck founders, Bruce Bise, 60, and Samuel Mendez, 65, were charged with the crime. Bise pleaded guilty on Sept 9 and Mendez pleaded guilty today (Wednesday). The details mentioned in plea papers suggest that Bise and Mendez cheated more than 13,000 investors and earned this huge amount to spend on their luxurious casino trips, arts, lavish cars, and more.

According to the Acting US Attorney, Chad Meacham, the defendants have exploited the emerging technology and lied to their investors to fill their pockets. He said, “Transacting in virtual currencies does not exempt businesspeople from paying income taxes. The Department of Justice is committed to ensuring that every taxpayer pays his or her fair share – and to protecting the crypto space from bad actors.”

Meacham added that Bise and Mendez exploited the growing appeal of digital currency and used thousand of dollars from their victim investors for their personal luxury fulfillment. The defendant duo would demand investors to produce cash and converted the fraud proceeds to cryptocurrency to purposefully circumvent financial reporting requirements.

Do you think the development could come as a big blow to cryptocurrency?

 

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