Owners of crypto companies are guilty of tax evasion and threaten up to 5 years in prison-
Owners of crypto companies are guilty of tax evasion and threaten up to 5 years in prison-
The owners of a cryptocurrency company, which has raised around $ 24 million of more than 13,000 investors, are guilty of tax evasion. "These cryptoversed accused took advantage of an emerging technology, lied to their investors, inserted the proceeds and hid the income before the IRS," said the incumbent US public prosecutor Chad Mehacham.
the founders of the crypto company threaten up to 5 years in prison
The US Justice Ministry (DOJ) announced on Tuesday that the owners of a cryptocurrency company have guilty.
The Bitqyck founder Bruce Bise and Samuel Mendez were charged in August for tax evasion. Bise was guilty on September 9th and Mendez announced himself guilty on Tuesday morning. Citing Plädoyers, the doj explained:
Mr. Bise and Mr. Mendez admitted that Bitqyck has raised around $ 24 million of more than 13,000 investors. Instead of fulfilling their promises to these investors, the accused Bitqyck money used for personal expenses, including casino trips, cars, luxurious furnishings, art and rent.
"These crypto-soded accused took advantage of an emerging technology, lied to their investors, inserted the proceeds and hid the income before the IRS," described the incumbent US prosecutor Chad Mehacham.
The couple applied to the company's cryptocurrency, Bitqy, "as a way for those who missed Bitcoin to get rich," the Doj and added that they held their initials Coin offer (ICO) in 2016.
A white paper published on the Bitqyck website promised investors that each Bitqy token with 1/10 was delivered to a Bitqyck stem shares. However, Bise and Mendez admitted that they never actually distributed shares to token owners or embedded the shares in the Ethereum Smart Contract.
About nine months after the introduction of Bitqy began and Mendez started marketing another tokens, Bitqym. They claimed that the purchase of the token enabled investors to take part in "Bitcoin mining operations". In reality, however, the couple admitted that there was never such a mining plant.
In addition, Bise and Mendez 2016 and 2017 did not report their income to the IRS. In 2018, Bitqyck did not submit any corporate tax returns at all, although they received more than $ 3.5 million from investors. "The entire tax loss between Mr. Bise and Mr. Mendez is more and more debt at more than $ 1.6 million," said the Ministry of Justice.
The doj explained:
both men now threaten for up to five years in the federal prison.
Bitqyck has also agreed with the US Securities and Exchange Commission (SEC). The company "agreed to pay a penalty of $ 8.3 million in order to enclose claims that investors cheated on it and did not register with digital assets that have not been registered". The DOJ added that the Bise and Mendez "agreed to" agree to skimming and punishment in the amount of $ 890,254 or $ 850,022 ".
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