Marco Ruiz Ochoa pleaded responsible to at least one rely of conspiracy to commit wire fraud within the Southern District Court docket of New York on Sept. 27 in relation to Ponzi scheme perpetrated by the IcomTech firm. Ochoa was CEO of IcomTech from its founding in 2018 to 2019.
In line with a assertion from the US Justice Division, IcomTech promised traders day by day returns on funding merchandise supplied by the corporate, which presupposed to be a crypto mining and buying and selling firm. Promoters “hosted lavish expos” and different neighborhood occasions world wide to draw clients. The corporate additionally issued its personal token, known as an Icom.
Associated: Ponzi vs. pyramid schemes: What’s the distinction?
The corporate allegedly didn’t mine crypto, nonetheless, and traders have been unable to withdraw income they noticed accruing of their accounts. The corporate collapsed in late 2019. Prices have been introduced in opposition to Ochoa and different IcomTech executives in November. Ochoa faces a most sentence of 20 years in jail. U.S. Lawyer Damian Williams stated:
“At this time’s responsible plea sends a transparent message that we’re coming in spite of everything of those that search to use cryptocurrency to commit fraud.”
Ochoa’s plea got here a day after Pablo Rodriguez, co-founder of the AirBit Membership Ponzi, was sentenced to 12 years in jail by a special choose of the Southern District Court docket of New York.
CEO of cryptocurrency Ponzi scheme “IcomTech” pleads responsiblehttps://t.co/ov6BMTZ11K
— US Lawyer SDNY (@SDNYnews) September 27, 2023
Additionally on Sept. 27, the Commodity Futures Buying and selling Fee (CFTC) introduced fees in opposition to Mosaic Change Restricted and its CEO Sean Michael. Mosaic Change allegedly lured traders to permit it to enter into “futures, swaps, and leveraged spot transactions in cryptocurrency” on their behalf. CFTC commissioner Kristin Johnson stated in a assertion on the fees:
“Mosaic was capable of commerce digital asset derivatives on BitMEX and Binance, two platforms that the CFTC has beforehand charged with, amongst different issues, failing to register as an FCM [futures commission merchant], SEF [swap execution facility], or DCM [designated contract market], and failing to implement anti-money laundering and know-your-customer procedures.”
“In accordance with our current authority, the CFTC ought to start introducing regulation to handle gaps which will exist in these novel market buildings,” she continued.
Journal: Deposit danger: What do crypto exchanges actually do along with your cash?
