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Charges Made Against Two Men in $25M Crypto Scheme

— December 27, 2023

Crypto scandals continue as the market booms.

Watching the crypto market continue to develop has been a rollercoaster over recent years. There have been some notable highs, to be sure, as more and more people become aware of and interested in crypto. At the same time, this space has been rocked by many crypto scheme masterminds.

It’s the unregulated nature of crypto that makes it appealing to so many people. At the same time, that wild west environment also makes it ripe for those behind crypto scheme efforts to take advantage of people who are unsuspecting and don’t think they could be at risk of fraud. Only as more and more perpetrators are caught and prosecuted will it be likely that the rate of these crimes will tail off. And, of course, the future of crypto as a meaningful player in the financial world will largely depend on how quickly these kinds of schemes can be brought to a halt.

The indictment brought against two individuals accused of running a Ponzi scheme – one from California and one from Australia – highlights charges of defrauding victims of more than $25 million. These funds were taken by promising investors impressive returns that were allegedly going to be earned by an AI trading bot that would be able to achieve high yields over and over again. These investment programs were promoted under a variety of names and brought in many victims.

Charges Made Against Two Men in $25M Crypto Scheme
Photo by Worldspectrum from Pexels

As is the case in a typical Ponzi scheme, the money that was secured as an investment wasn’t actually invested in the manner that was promised. Instead, it was used for a variety of high-end personal expenses. Those who invested in this scheme never had any chance on getting their money back, let alone seeing any positive return on the investment they thought they made.

These kinds of financial crimes come along with very serious charges and the potential for heavy punishments for those who engage in them. Among the charges that are faced by the two individuals in this case include wire fraud, obstructing justice, money laundering, and more. If convicted of all of the charges that have been brought to the court, it’s possible that each of these individuals will spend many decades in prison. The exact length of time that may be assigned as a sentence, if convicted, will depend on the specifics of the verdict and any extenuating circumstances that may exist.

The scale of cryptocurrency fraud and various schemes is what makes these types of cases so remarkable. They are often global in nature and involve millions or even billions of dollars in funds. While the existence of such fraud isn’t likely to bring the entire crypto world to a halt, these issues will surely slow down its growth as many people may be hesitant to jump into a market that seems slightly out of control and highly risky. With age and further regulation, crypto may still become something that is suitable for a wider audience around the globe.


Two Men Charged for Operating $25M Cryptocurrency Ponzi Scheme

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