Crypto Mining Ponzis That Made $8.4M Face Charges.
A multitude of people who are responsible for creating and promoting two cryptocurrencies that are suspected of being fake face a litany of accusations that could send them to prison for a period of twenty years.
Prosecutors in the United States of America have filed accusations against nine individuals in two distinct instances. These individuals are accused of founding or promoting a pair of cryptocurrency organizations that are suspected to be Ponzi schemes and earned $8.4 million from investors.
The indictment against the purported crypto mining and trading companies IcomTech and Forcount was unsealed on the 14th of December by the United States Attorney's Office for the Southern District of New York. The indictment alleges that IcomTech and Forcount promised investors guaranteed daily returns that could double their investment in six months.
In point of fact, according to the prosecution, both businesses allegedly used the money from later investors to pay earlier investors, while other monies were spent on advertising the company, purchasing luxury goods and real estate, and so on.
It is said that promoters would show up at events flaunting their lavish lifestyles by driving expensive automobiles, donning costly clothes, and bragging about the amount of money they were generating from their investments in the firm they were pushing.
Both IcomTech and Forcount launched their own separate tokens in an effort to increase liquidity and try to repay investors. Icoms and "Mindexcoin" were the names of the tokens that were introduced by IcomTech and Forcount, respectively.
It would seem that the token sales were unsuccessful since by 2021 both companies had ceased paying payments to investors.
In the indictment, the person identified as the creator of IcomTech was identified as David Carmona, who resides in Queens, New York. Carmona was charged with conspiracy to conduct wire fraud, which carries a potential sentence of 20 years in prison.
Francisley da Silva, originally from Curitiba, Brazil, was identified as the originator of Forcount. He is now being investigated for wire fraud, money laundering conspiracy, and wire fraud conspiracy, all of which carry a potential sentence of sixty years in jail if all accusations are proven true.
The promoters of the companies are being investigated for a variety of offenses, including conspiracy to commit wire fraud, wire fraud, and money laundering, as well as making false representations.