Related Federal Cases
Bitqyck Founders, Tax Evasion, Texas 2022
Two Texas men, Bruce Bise and Samuel Mendez, have been sentenced to a combined 8 years in federal prison for tax evasion in connection with the cryptocurrency company Bitqyck.
According to the U.S. Attorney for the Northern District of Texas, Chad E. Meacham, the pair was charged with tax evasion in August 2021. Bruce Bise pleaded guilty on September 9, 2021, and was sentenced on March 7, 2022, to 50 months in federal prison. Samuel Mendez pleaded guilty on October 12, 2021, and was sentenced to 50 months in prison.
The pair was ordered jointly and severally liable for $1.6 million apiece by U.S. District Judge Jane J. Boyle.
According to plea papers, Bitqyck raised approximately $24 million from over 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.”
Mr. Bise and Mr. Mendez profited from Bitqyck by diverting income from the company for their personal use at their shareholders’ expense. From 2016 to 2018, Mr. Bise and Mr. Mendez raked in roughly $4.68 million and $4.48 million, respectively.
The case serves as a reminder that cryptocurrency companies and their founders are subject to the same tax laws as traditional businesses.
The U.S. Attorney’s Office for the Northern District of Texas is committed to holding those who engage in tax evasion accountable for their actions.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime