The owners of a cryptocurrency company have been sentenced to a combined 8 years in federal prison for tax evasion, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bitqyck founders Bruce Bise, 61, and Samuel Mendez, 65, were charged with tax evasion in August 2021. Mr. Bise pleaded guilty on Sept. 9, 2021 and was sentenced on March 7, 2022 to 50 months in federal prison; Mr. Mendez pleaded guilty on October 12, 2021 and was sentenced this afternoon to 50 months in prison. U.S. District Judge Jane J. Boyle ordered the men jointly and severally liable for $1.6 million apiece.
According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and rent.
Crypto actors are required to pay their fair share of taxes, just like everyone else, said U.S. Attorney Chad Meacham. 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, said Special Agent in Charge Christopher J. Altemus Jr., Dallas Field Office. 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.
In marketing materials, the pair promoted the companys cryptocurrency, Bitqy, as a way for those individuals who missed out on Bitcoin to get…
