Justin Ryan Schmidt, a former crypto hedge fund manager based in Austin, Texas, was sentenced to 37 months in federal prison for tax evasion. Between 2020 and his expatriation in March 2022, he earned at least $6 to $7 million in unreported income from his fund Translunar Crypto LP. When renouncing his US citizenship, he claimed a net worth of just $25,000 to dodge the exit tax while concealing foreign bank accounts in violation of FBAR requirements. After leaving, he generated $3.2 million in gains from a Colorado real estate transaction without reporting the US-sourced income. The case signals intensified enforcement by US authorities against crypto sector operators attempting to circumvent tax obligations through citizenship renunciation.
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