Top executives and operators of the cryptocurrency mining and trading business AirBit Club have entered a guilty plea in fraud and money-laundering allegations.
U.S. Attorney Damian Williams said:
“The defendants took advantage of the growing hype around cryptocurrency to con unsuspecting victims around the world out of millions of dollars with false promises.”
$100M Worth of Assets Involved
The defendants must forfeit the fraudulent Airbit Club profits as part of the guilty plea. It reportedly consists of seized or restrained property, including $100 million worth of real estate, Bitcoin, and U.S. currency.
The attorney noted that the defendants created a Ponzi scam and used the victims’ money to fund it instead of mining or selling cryptocurrencies for the investors.
Notably, the plea includes the names of Pablo Renato Rodriguez, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, Karina Chairez, and Jackie Aguilar.
Additionally, the company often did not honor victims’ withdrawal requests, as per the Department of Justice. DoJ underlined that AirBit Club Online Portal encountered delays, excuses, and hidden fees totaling more than 50% of the victim’s requested withdrawal since 2016.
AirBit Club was first launched in 2015.
First Instance of Action Against AirBit Club
To persuade their victims to buy AirBit, the executives held lavish expos and intimate community presentations, according to the statement. Apart from the U.S., they also reportedly went to Latin America, Asia, and Eastern Europe. They allegedly have amassed wealth, purchased expensive vehicles, jewelry, and mansions with victims’ money, and funded expos to enlist more investors.
Earlier in 2020, U.S. Attorney’s Office announced unsealing of an indictment accusing the company’s executives of participating in a global fraud and money-laundering ring. In the year, leading perpetrators in the crypto investment fraud were taken into custody.
Dos Santos was detained in Panama in August for his participation in the scheme.
While the Judge has not yet announced a sentence, Congress has set a maximum sentence in these cases. For conspiracy-related offenses, the guilty may receive a 20-year sentence. Money laundering and wire theft each receive two decades. The highest sentence for bank fraud is 30 years.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
Source: https://beincrypto.com/airbit-clubs-execs-plead-guilty-100m-cryptocurrency-ponzi-fraud/