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

Justin Ryan Schmidt receives 37-month prison term for concealing over $7 million in fund revenue, marking a significant enforcement action against crypto asset managers.

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. The Department of Justice confirmed that the 46-year-old pleaded guilty in federal court in Austin, Texas, after being accused of underreporting income by more than $5,000 between 2020 and 2022, despite generating over $7 million in revenue. Schmidt, who established the blockchain startup investment fund in 2017 with capital from investors in Austin and Aspen, was arrested by the IRS Criminal Investigation Division on February 23, 2026, and has remained in custody since.