U.S DOJ Indicts Five for Cryptocurrency Mining Fraud

1. c The U.S Justice Department claims the defendants laundered at least $20 million of the proceeds in the scheme. The United States Department of Justice – DOJ in an unsealed document indicts five for their roles in a cryptocurrency mining investment fraud. The DOJ charged Pablo Renato Rodriguez, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, And Jackie Aguilar for allegedly operating a money-laundering ring and defrauding individuals through investments in AirBit Club, a purported cryptocurrency mining and trading company. The DOJ in a ​press release details on how the group coordinated and defrauded victims in the scam ring. This, however, started sometimes around in 2015 even before the 2017 bull run. From investigations carried out, Rodriguez and Dos Santos are the owners of AirBit Club. The duo together with Millan and Aguilar were also active promoters of the investment packages. They promised investors passive income for their investments. DOJ alleges the Ponzi operators travelled extensively promoting their Cryptocurrency Mining Fraud Four of them travelled around the four continents. This included the United States, Latin America, Asia and Eastern Europe. They hosted luscious seminars encouraging people to invest in AirBit packages. The operators also furnished victims with an AirBit Club portal which accumulated purported profit. However, as the DOJ proves, the profit representations were a fraud. There was no underlying trading and cryptocurrency mining activity to support the claims. Instead, the five spent their victims’ money on luxury cars, jewellery, and homes. They also used proceeds from the Ponzi to finance more extravagant expos to recruit more victims.

2. The DOJ also uncovered how the operators of the Ponzi scheme tried to conceal their guilt by asking for deposits from investors in cash. Read More: https://cryptodose.co/u-s-doj-indicts-five-for-cryptocurrency-mining-fraud/