July 14, 2024

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Justice Department Charges Five for Alleged $20M Cryptocurrency Mining Fraud

The U.S. Division of Justice on Tuesday claimed it has unsealed an indictment charging five men and women for intercontinental fraud, dollars laundering, and defrauding men and women as a result of a purported cryptocurrency company.

The five men and women — Pablo Renato Rodriguez, Gutemberg Dos Santos, Scott Hughes, Cecilia Millan, and Jackie Aguilar — ran a company known as AirBit Club considering the fact that the beginning of 2015, which claimed to mine and trade in cryptocurrency, the Justice Division claimed in a statement.

The alleged fraudsters, charged with working a multimillion-dollar fraud and dollars-laundering ring, expended their victims’ dollars on luxurious autos, jewellery, and homes, in accordance to Homeland Stability Investigations particular agent-in-demand Peter Fitzhugh.

Prosecutors say that they traveled during the planet and hosted expositions and presentations — inducing victims to order memberships in AirBit Club’s scheme.

The victims are claimed to have noticed revenue accumulate on the website of the scheme, but no precise bitcoin mining or buying and selling took position. Instead, the alleged fraudsters enriched them selves with the invested funds.

The Justice Division statements the defendants laundered at the very least $twenty million of the proceeds in the scheme.

Rodriguez, Dos Santos, and Millan stand charged with solitary count to commit wire fraud, conspiracy to commit dollars laundering, and conspiracy to commit bank fraud.

Hughes was charged with one count of conspiracy to commit dollars laundering and one count of conspiracy to commit bank fraud. Aguilar was charged with one count of conspiracy to commit wire fraud.

Bitcoin traded virtually three.9{79e59ee6e2f5cf570628ed7ac4055bef3419265de010b59461d891d43fac5627} lower at $11,787.89 on Wednesday at press time.

This story originally appeared on Benzinga.

© 2020 Benzinga.com. Benzinga does not present investment guidance. All rights reserved.

AirBit Club, Benzinga, cryptocurrency, Money laundering