U.S. Attorneys Blame So-Called ‘Cryptocurrency Mining’ Pyramid for Raising $8.4M

U.S. prosecutors have charged in two separate instances 9 individuals who based or promoted two cryptocurrency corporations in an alleged Ponzi (pyramid) scheme that netted $8.4 million from buyers.

On December 14, the U.S. Attorney’s Office for the Southern District of New York filed an indictment alleging that IcomTech and Forcount, corporations concerned in cryptocurrency mining and buying and selling, promised buyers “assured each day returns,” which might permit their investments to return inside six months. double.

In reality, prosecutors mentioned, each corporations have been utilizing cash from later buyers to repay earlier buyers, whereas different funds have been used to advertise the businesses and purchase luxurious items and actual property.

“Luxury Showcases” are held within the U.S. and overseas, and showcased in small communities, luring buyers with the promise of monetary freedom and wealth.

Promoters allegedly present up in costly vehicles, put on flashy garments and brag concerning the cash they make investing within the corporations they promote.Investors can entry a “portal” to watch their returns

IcomTech and Forcount started to disintegrate when customers have been unable to withdraw their claimed returns.

The U.S. Securities and Exchange Commission (SEC) fees towards Forcount’s creator and promoters say the group primarily focused Spanish-speaking individuals and raised greater than $840 million from “a whole lot” of buyers who offered “memberships.” million {dollars}, offering some cryptocurrency buying and selling and mining actions.

To enhance liquidity, each corporations created tokens so they may attempt to reward buyers with the launch of “Icoms” and “Mindexcoin” by IcomTech and Forcount respectively.

Apparently, the token sale failed as each events stopped paying buyers in 2021.

“With these two fees, the workplace is sending a message to all cryptocurrency scammers: We’re after you,” mentioned U.S. Attorney Damian Williams. “A steal is a steal, even when disguised in crypto phrases.” .”

David Carmona of Queens, New York, is called within the indictment because the founding father of IcomTech and charged with conspiracy to commit wire fraud, which carries a most penalty of 20 years in jail.

Forcount’s founder, recognized as Francisley da Silva of Curitiba, Brazil, faces fees of wire fraud, conspiracy to commit wire fraud and conspiracy to commit cash laundering, all of which carry a most penalty of 60 years in jail if convicted.

Prosecutors for the businesses face a number of fees associated to wire fraud, conspiracy to commit wire fraud and cash laundering, and false statements.

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