To conceal their misappropriation, Nawabi created and issued false account statements that misrepresented trading returns the pool participants supposedly earned. When clients wanted their money back, Nawabi wouldn’t return them their funds.
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A New York jury has found David Brend and Gustavo Rodriguez, former promoters of the crypto mining and trading company IcomTech, guilty of wire fraud conspiracy.
The U.S. Securities and Exchange Commission (SEC) has charged 17 individuals involved in an alleged Ponzi scheme that amassed $300 million by deceiving over 40,000 investors, mostly within the Latino community.
Armando Gutierrez Rosas purportedly intended to invest these funds in U.S. real estate and mining operations in Mexico, assuring investors of monthly returns as high as 10 percent. Instead, Gutierrez operated a Ponzi scheme, diverting investor funds to cover his personal expenses, which notably included the acquisition of a $2.5 million mansion in Texas.
Six executives of AirBit Club, a fraudulent cryptocurrency scheme involving a purported mining business and money laundering ring, have pleaded guilty to running a $100 million Ponzi scheme and face up to 20 years in prison, prosecutors said.
The CFTC complaint alleges that a fraudulent scheme operated by Tin Quoc Tran from approximately April 2020 to the present directly accepted at least $144,043,883 from approximately 913 pool participants.
The US Department Of Justice has charged Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, and its four founders for their roles in a global Ponzi and pyramid scheme that raised approximately $340 million from victim-investors. Vladimir Okhotnikov, aka Lado; Olena Oblamska, aka Lola Ferrari; Mikhail Sergeev, aka Mike Mooney, aka Gleb, aka Gleb Million; […]
“This action demonstrates our ongoing commitment to use the tools at our disposal to hold bad actors accountable in the digital asset space. It is just one more example of the CFTC’s efforts to protect retail customers from fraud related to digital asset commodities”
“Affinity-based fraud schemes all-too-often seek to exploit the trust generated within a community. Perpetrators target the identified communities because they are familiar with the fears and challenges that may deter investors from reporting or effectively communicating the details of the fraud to law enforcement or regulatory authorities.”
“Convicted fraudsters should not be able to retain the proceeds of their wrongdoing and we will continue to ensure orders are not evaded.”
The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.
“To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytical tools to aid us in the pursuit of individuals who perpetrate securities fraud.”
“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.
The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.
We allege that the defendants deceived investors about the pre-IPO shares they held, how much they were charging in fees, and who was controlling the business—all while paying themselves more than $75 million.
He was able to persuade these investors by claiming his companies had historically made large profits, between 8 to 25% per month.
The asset freeze obtained by the SEC against Beasley and the other defendants prevents any further dissipation of investor funds.
The CFTC will continue to partner with foreign regulators, Denmark in this case, and other agencies to aggressively pursue individuals that commit fraud against its residents.
The CFTC first pressed charges against Abner Tinoco in October 2021, accusing him on fraudulent solicitations and misappropriation of over $3.9 million from at least 61 clients. The number has since moved upwards of $7.2 million from at least 322 clients.