Rutland County Crypto Club Founder Faces $1 million IRS Fraud Case
Wright on Feb. 25, 2021 withdrew cryptocurrency assets from his accounts on the Kraken cryptocurrency exchange and placed them beyond the reach of the Internal Revenue Service, the indictment said.
By Michael Donoghue - Vermont News First
A cryptocurrency trader from Rutland County is facing a federal charge of bilking the Internal Revenue Service out of more than $1 million in income taxes, penalties and interest, according to a new federal indictment filed in Burlington.
John Caleb Wright, who is in his 40s, is due for arraignment on July 22 in U.S. District Court in Burlington before Federal Magistrate Judge Kevin J. Doyle, Vermont News First has learned.
The indictment maintains between February and May 2021, the defendant, who is known also as Caleb Wright, willfully attempted to evade and defeat the IRS in Vermont and elsewhere for money that was properly owed to the government, court records show.
The money owed was due for past taxes in calendar 2017 and 2018, along with interest and penalties for not making good on the income initially owed, records show.
Acting U.S. Attorney Michael P. Drescher said this morning he expects he will have a news release later today concerning the case, which was investigated by the IRS Criminal Division in Vermont.
Wright’s LinkedIn profile noted he is a 2000 graduate of Rutland High School and a 2005 graduate of Castleton University, where he says he majored in mass communication and media studies.
The profile also said he did video production for PEG-TV in Rutland and for the Mountain Times in Killington.
His profile claims he was the creator of “Creator of Bitcoin Lifestyles Club” and is listed as having 3,220 followers.
His post also notes, “My goal is to help as many people as possible unlock their lives financially by learning how to trade the bitcoin / cryptocurrency financial market through our Crypto Trading & Mining Mastery Course education and support of our Crypto Trading Mastermind group…”
Comments on social media have called into question his work and classes that he reportedly offered.
Wright was notified by the IRS in February 2021 that enforcement collections of his income and assets, including cryptocurrency assets would begin by Feb. 26, 2021, the indictment said.
Instead, Wright on Feb. 25, 2021 withdrew cryptocurrency assets from his accounts on the Kraken cryptocurrency exchange and placed them beyond the reach of the Internal Revenue Service, the indictment said.
Wright after redepositing cryptocurrency assets from his accounts on the Kraken exchange on May 14, 2021, he transferred them beyond the reach of the Internal Revenue Service on May 22, May 23, and May 30, 2021, the indictment said.
If convicted, Wright could be imprisoned for up to five years and fined up to $100,000, along with other possible penalties provided by the law.
Assistant U.S. Attorney Corinne M. Smith obtained the felony indictment in Burlington on June 12, but there is little else known about the case in the public file.
The case has been assigned to Chief Federal Judge Christina Reiss in Burlington.