5 people related to IcomTech, a cryptocurrency Ponzi scheme that defrauded traders of $8.4 million, had been ordered by a federal courtroom to pay over $5 million in restitution and penalties.
The December 11 ruling by the US District Court docket for the Central District of California additionally included jail sentences for 3 of the defendants.
Working between 2018 and 2019, IcomTech marketed itself as a cryptocurrency platform providing every day returns of as much as 2.8%. Traders had been satisfied their funds had been getting used for cryptocurrency buying and selling and mining, facilitated via “Icoms,” a proprietary token. Nevertheless, investigators discovered no proof of such actions. As an alternative, the defendants misused the funds for private bills, together with luxurious items and high-end holidays.
David Carmona, the chief of the scheme, alongside his associate David Brend, received 10-year jail sentences. One other conspirator, Marco A. Ruiz Ochoa, was sentenced to 5 years. Two extra defendants, Juan Arellano Parra and Moses Valdez, had been held accountable via monetary penalties and had been completely banned from partaking in any CFTC-regulated actions.
The Commodity Futures Buying and selling Fee (CFTC) began its investigation into IcomTech in 2023 after complaints from defrauded traders. The case highlighted a typical sample in cryptocurrency fraud, the place victims are enticed by guarantees of outsized returns and persuaded to recruit others, fueling a cycle of deception.
The courtroom additionally ordered the forfeiture of greater than $1.2 million in property linked to the defendants. Regardless of this restoration, many victims are unlikely to recoup their full losses.
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