Translunar Founder Sentenced to 37 Months for $7M Tax Evasion

Justin Ryan Schmidt receives 37-month prison term for underreporting $7M in fund revenue, marking a significant regulatory enforcement action against crypto fund operators.

Woofun AI reports that Justin Ryan Schmidt, founder of Translunar Crypto LP, was sentenced to 37 months in prison by a U.S. court for tax evasion. Schmidt pleaded guilty in a federal court in Austin, Texas, after being accused of underreporting income between 2020 and 2022. Prosecutors stated he reported less than $5,000 in earnings while generating over $7 million in revenue from fund operations between 2019 and 2022. The IRS Criminal Investigation Division arrested Schmidt on February 23, 2026, and he has remained in custody since.