Free NewsletterPro Login

Warning: Undefined variable $stocks in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 448

Warning: Undefined variable $funds in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472

Warning: foreach() argument must be of type array|object, null given in /var/www/briefs.co/htdocs/wp-content/plugins/oxygen/component-framework/components/classes/code-block.class.php(133) : eval()'d code on line 472
/* the link was here */
×
Free investor livestream — Nov 17

How To Use ChatGPT & Claude To Research Stocks Like A Pro

01
The prompt we use to break down any stock
02
How to fact-check what AI tells you
03
How to compare two stocks in minutes

Cryptocurrency Hedge Fund Operator Jailed 37 Months for Tax Evasion After Renouncing US Citizenship

Published Jul 29, 2026
Share:
Marble courthouse corridor with tall columns and a closed wooden door
Summary:
  • A federal judge imposed a 37-month prison term on Justin Schmidt for tax evasion after he renounced his U.S. citizenship.
  • He reported under $5,000 in annual income while actually earning over $7 million from his crypto hedge fund.
  • A federal judge ordered him to pay roughly $3.4 million in restitution.

A federal judge handed Justin Ryan Schmidt a 37-month prison sentence for tax evasion after he gave up his U.S. citizenship. He reported under $5,000 in annual income while actually earning over $7 million from his fund between 2019 and 2022. A federal judge ordered him to pay roughly $3.4 million in restitution, and he has been in custody since his February 23 arrest.

Schmidt operated Translunar Crypto LP, a hedge fund that invested in blockchain startups. Schmidt gave up his U.S. citizenship in March 2022 and moved to the Cayman Islands. At that time, he submitted a fraudulent tax return that misrepresented his net worth, according to the Justice Department. The following year, Schmidt acquired a residence in Snowmass Village, Colorado, costing $5.8 million, and resold it after only three months for $9 million, but he submitted false documents to sidestep taxes on the sale, prosecutors said.

"Renouncing US citizenship does not shield you from American justice," Assistant Attorney General Colin M. McDonald stated. "Mr. Schmidt deliberately hid millions in income and assets from the IRS, filed false statements, and cheated America's tax system."

Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter

Schmidt launched Translunar in 2017 to support early-stage blockchain firms, drawing most of its funds from backers in Austin, Texas (his residence then) and Aspen, Colorado, per a defense sentencing memo filed this month.

Prosecutors noted in a July 22 filing that following his arrest, Schmidt claimed to the probation office that he was unmarried and had a net worth of negative $1.1 million. Prosecutors revealed that Schmidt is actually married to a British citizen who resides in the Cayman Islands, and he currently acknowledges his net worth is more than $5.8 million.

This case underscores that giving up U.S. citizenship does not eliminate one's duty to pay taxes. It also highlights the IRS's increasing focus on cryptocurrency-related financial crimes, as digital asset transactions often leave a traceable trail that investigators can follow even after individuals relocate abroad. Authorities emphasized that attempts to hide income and flee the country will not escape prosecution.

The IRS's investigation into Schmidt began with a routine review of cryptocurrency transactions, which flagged discrepancies between his reported income and his actual crypto holdings. Agents used forensic accounting and blockchain analysis to trace his digital asset movements across multiple wallets and accounts, uncovering the true scale of his earnings. The sentencing reinforces the government's determination to pursue tax evaders regardless of their location or legal status.

After relocating to the Cayman Islands, he continued to manage assets and engage in property deals in the United States, which ultimately drew scrutiny from tax authorities. The IRS employed forensic accounting and blockchain analysis to link his offshore holdings to his underreported income, showing that digital ledgers can expose financial misconduct across borders.

The docket number is US v. Schmidt, case 26-cr-94, in the Western District of Texas (Austin).

Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets

Disclosure

Recent News

1 2 3 … 115

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

October 23, 2026
Are We in a Recession? 5 Threats to the Economy and Where the Money Is Moving
  • The S&P 500 is up about 13% this year, but without AI it's in a bear market, with nearly 40% of its companies down more than 20% for four months or longer.
  • Jackson, Briefs Finance's head of investing research, sees five threats: rising interest rates, sticky inflation, an economy propped up by AI, a struggling UK, and high oil prices.
  • The opportunities he's watching mostly sit outside the dollar: rising economies like Brazil and Indonesia, US-backed emerging market bonds paying 7% to 9%, and the shifts that fear creates.
Read More
October 16, 2026
How Boring Math Makes You Rich: The Briefs Money Spreadsheet, Explained
  • Briefs Money shows you what to do with every paycheck, and in what order: how much to spend, save, and invest, when to build an emergency fund, and which debt to pay off first.
  • The Climb to Wealth course walks you through the system step by step, and the Personal Finance Spreadsheet is where you track your own numbers.
  • Investing is one piece of building wealth. The system that gets money to your investments, and keeps it there, decides the outcome.
Read More
October 16, 2026
Common Investing Mistakes: Why a Stock Grade Is One Tool, Not the Whole Toolkit
  • The Briefs Score shows growth, income, and wealth preservation investors how well a stock fits their goal, with a separate letter grade for each one.
  • The most common mistake is treating the letter as an instruction. An A tells you a stock scores well for one goal, not that you should buy today.
  • Research works best as one input in a process you own. The grade shows how a stock stacks up. You supply the goal, the timeline, and the rules for being wrong.
Read More
October 16, 2026
How to Read a Company's Numbers Without a Finance Degree (Using Briefs Terminal)
  • Briefs Terminal lets you size up any public company in about ten minutes: what the stock costs, what it earns, how fast sales are growing, and what it pays you, all on one page.
  • It lines those numbers up against the company's closest competitors for you, so you can tell if a number is impressive or just average.
  • Below that are the income statement, balance sheet, and cash flow statement from the company's SEC filings, the latest news, and transcripts of its earnings calls.
Read More
October 16, 2026
What Type of Investor Am I? The Three Investor Archetypes, Explained
  • Briefs sorts its stock grades and monthly reports by three investor goals: growth, income, and wealth preservation. Pick yours and you know which report and which grade to read first.
  • Growth investors want stocks that beat the S&P 500. Income investors want to get paid in cash. Wealth preservation investors want stocks that hold up when the market drops.
  • The same stock can score an A- for one goal and a D- for another, so picking your goal comes before picking any stock.
Read More
October 16, 2026
How to Build a Stock Watchlist That Isn't Just Stocks You Heard About
  • A watchlist on Briefs Terminal lets you group stocks by the idea you're tracking and follow each one's price, one-day move, and 52-week high and low in one place.
  • Each list has its own name and description, so you always know why a stock is on it, and you can make as many lists as you have ideas.
  • The monthly growth, income, and wealth preservation reports under the Briefs Research tab hand you new themes to track that you didn't hear about online.
Read More
October 16, 2026
How to Choose an ETF That Matches Your Idea (Using the ETF Planning Tool)
  • The ETF planning tool takes an idea like "I want to invest in fast food companies," asks what you mean, and finds the ETFs that match, with the reasons, the holdings, and the sources.
  • Build a Plan then shows what your money could grow to in those ETFs over the years you choose, with conservative, expected, and optimistic estimates next to the S&P 500.
  • It gets you from an idea to an actual plan without researching dozens of companies one at a time.
Read More
October 16, 2026
Is This Stock a Good Buy? How to Use the Briefs Score to Tell If a Stock Fits the Way You Invest
  • The Briefs Score shows growth, income, and wealth preservation investors how well a stock fits their goal, with a separate letter grade for each one.
  • One stock can score very differently for each. Nvidia showed an A- for growth and a D- for income, because it grows fast and pays almost no dividend.
  • Seven sub scores under each grade show what earned the letter, so you can see exactly where a stock is strong or weak for your goal.
Read More
October 16, 2026
How to Tell an Asset From a Liability: The One Question to Ask Before You Buy Anything
  • The typical American household earned more in 2025 than in any year on record, yet only 30% of Americans say they could pay a surprise $1,000 bill from savings, so the problem isn't income but what the income gets spent on.
  • An asset puts money in your pocket and a liability takes money out, and the wealthy buy assets first, then let the assets pay for the fun stuff.
  • Before you buy anything, ask one question: does this put money in my pocket, or take money out of my pocket? Then you need a plan for the money you keep.
Read More
October 16, 2026
How to Build Your First $2,000 Emergency Fund and Wipe Out Every Debt Over 10%
  • Your first money goal isn't investing, it's $2,000 in its own account named Do Not Touch, built by moving 10% of every paycheck into it automatically.
  • More than a third of American adults couldn't cover a $400 surprise bill with cash or savings, according to the Federal Reserve, and that's how one bad day turns into years of credit card payments.
  • Once the $2,000 is there, attack every debt charging more than 10% interest, highest rate first, because you can't out-invest a 22% credit card so paying it off is the investment.
Read More
1 2 3 … 29
Share via
Copy link