Crypto Ponzi Leader Receives 121-Month Prison Sentence

David Carmona, founding father of the Icomtech cryptocurrency Ponzi scheme, has been sentenced to greater than 10 years in jail for defrauding buyers with false guarantees of earnings. His plan focused working-class folks with the attract of monetary freedom by means of cryptocurrency buying and selling and mining, however none of that really materialized. Lavish exhibitions have been held to lure extra victims, whereas new buyers’ cash was used to pay earlier victims.

Chief of Icomtech Ponzi Scheme sentenced to 10 years in jail

The U.S. Legal professional’s Workplace, Southern District of New York, introduced Friday that David Carmona, founding father of the cryptocurrency Ponzi scheme Icomtech, has been sentenced to 121 months in jail. U.S. District Decide Jennifer L. Rochon imposed the sentence after Carmona defrauded buyers by means of false guarantees of cryptocurrency-related earnings.

US Legal professional Damian Williams defined: “David Carmona was the mastermind behind the IcomTech cryptocurrency Ponzi scheme, which preyed on the working class by promising them full monetary freedom in alternate for handing over their hard-earned cash.” He added:

Carmona claimed that his victims’ cash can be invested in cryptocurrency buying and selling and mining, and that earnings from these actions would consequence within the victims doubling their cash inside six months. In actuality, Icomtech did no such factor. It was all a lie.

Carmona launched Icomtech in 2018, claiming to run a cryptocurrency mining and buying and selling operation. Based on prosecutors, “Carmona and the opposite promoters of Icomtech falsely promised their respective victims that, amongst different issues, earnings from the businesses’ cryptocurrency buying and selling and mining operations would end in a assured every day return on the victims’ investments and a doubling of their cash inside six months. ”

Nonetheless, Icomtech has by no means engaged in precise buying and selling or mining, the Public Prosecution Service famous. As a substitute, Carmona and his co-promoters used cash from new buyers to repay earlier victims and additional promote the fraudulent scheme. Lavish reveals and shows have been held to lure extra victims, with Carmona’s workforce displaying off luxurious automobiles and costly clothes to keep up the phantasm of success.

The scheme finally collapsed in late 2019, leaving victims unable to withdraw funds and left with nugatory tokens. Regardless of persistent complaints, the promoters of Icomtech continued to just accept investments. The Public Prosecution Service continued:

Along with the jail sentence, Carmona, 41, of Queens, New York, was sentenced to 3 years of supervised launch.

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