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The founders of a Dallas cryptocurrency company called Bitqyck were sentenced last week to federal prison for tax evasion. Bruce Bise and Samuel Mendez were first charged in August Bise pleaded guilty in September and was slapped with a 50 month federal prison sentence last week. Mendez pleaded guilty in October and was also sentenced to 50 month in prison.

They used that money on personal expenses like casino trips, cars, art and rent. Attorney Chad Meacham said in a statement. Anyone else contemplating such a scheme should know that the Justice Department and its law enforcement partners have a sharp eye on the cryptocurrency space, and we will not let criminal behavior slide. In , they held their initial coin offering. This is when investors could first purchase the cryptocurrency. The people who bought it were betting it would increase in value.

Instead, Bise and Mendez held on to all of the common stock. Some nine months after launching their first token, the two started marketing another one, BitqyM. They instead hired a third-party company overseas to try to mine the Bitcoin they promised investors. Altemus Jr. Peavler helped investigate the civil case against Mendez and Bise.

Since we started the Dallas Observer , it has been defined as the free, independent voice of Dallas, and we'd like to keep it that way. With local media under siege, it's more important than ever for us to rally support behind funding our local journalism.

You can help by participating in our "I Support" program, allowing us to keep offering readers access to our incisive coverage of local news, food and culture with no paywalls. Jacob Vaughn , a former Brookhaven College journalism student, has written for the Observer since , first as clubs editor.

More recently, he's been in the news section as a staff writer covering City Hall, the Dallas Police Department and whatever else editors throw his way. Ryan Lucas. The Justice Department said a New York couple has been charged with conspiring to launder billions of dollars' worth of stolen bitcoin. The seizure — the largest ever for the department — and arrests stem from the breach of the Bitfinex exchange. The couple faces charges of money laundering conspiracy and conspiracy to defraud the United States.

The case revolves around the cyber breach of Bitfinex, during which the hacker stole some , bitcoin and transferred them to a digital wallet —akin to a virtual account — outside the exchange. Prosecutors say that digital wallet was under Lichtenstein's control. Court papers say he and Morgan then conspired to launder those funds, conducting a series of small, complex transactions across digital platforms to try to hide the money. But, court papers say, investigators managed to trace the stolen funds through thousands of transactions to over a dozen accounts held in the name of Lichtenstein, Morgan or their businesses.

Prosecutors say the couple also set up accounts with fake names to use in their laundering operation.

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