A couple of a crypto company’s founders that deceived investors are charged with imprisonment of as equal as a decade’s half for evading taxes. As per the Attorney’s Office of the United States in Texas’ Northern District, Samuel Mendez and Bruce Bise laid the foundation of the crypto firm “Bitqyck” along with holding an ICO (Initial Coin Offering) during 2016. The firm spiked almost up to $24M from more than 13,000 investors. It has been disclosed by the IRS (Internal Revenue Service) that the crypto company, as well as the co-founders thereof, did not report their respective income earned from the ICO proceeds of the company, which paved the way for the tax losses which mounted up to hundreds-of-thousands of dollars.
During the period between 2016 as well as 2017, the respective income of Mr Bise was underreported by him to the Revenue Service, and its consequence was a significant amount of tax loss which counted up to $371,278. During the same time, Mr Mendez too underreported the income thereof as per which a tax loss was resulted in having approximately $311,155. While persuading the investors, Mendez and Bise made several promises, such as the token of the firm called BQ (Bitqy) would permit the people who did not have participated in the BTC (Bitcoin) rally to similarly make money.
The Bitqyck co-founders moved on to further cheat investors via marketing BitqyM (another token focused on BTC mining). In these cases, Mendez and Bise had gotten an advantage from Bitqyck by transferring the income out of the firm to that of their utilization at the expense of their shareholders. Initially, in 2019’s August, the pair of co-founders was charged by the SEC (Securities and Exchange Commission) 0f the United States for their fraud. Bitqyck was charged with more than the amount of $8 million, and the pair of co-founders was charged $1.7 million to be provided in a settlement with the Securities department of the United States.
Following the underreporting of income as well as confessing the tax evasion, Mendez and Bise are currently undergoing a decree of imprisonment spanning over five years (which is a reduced sentence due to their confession). In 2018, none of the returns of corporate tax was filed by Bitqyck, notwithstanding the net collection of about $3.5M from the investors.