“At the point something becomes a Ponzi scheme, we have lost our jurisdiction,” a regulator told Bloomberg.
Tag: Ponzi Schemes
GemCoin Founder Sentenced to 10 Years for $147M Crypto Scheme
Gemcoin founder Steve Chen was sentenced Monday to 10 years in federal prison for defrauding tens of thousands of investors in one of the largest early cryptocurrency investment schemes.
Chen, 63, admitted last February to running U.S. Fine Investment Arts (USFIA) and peddling $147 million in “gem coins” (crypto purportedly backed by gems) to over 70,000 investors from 2013 through 2015. Prosecutors have described USFIA as a Ponzi scheme and a multi-level marketing scheme.
His guilty plea on one count of tax evasion and one count of conspiracy to commit wire fraud carried a mandatory minimum 10-year sentence. Judge John F. Walter additionally ordered Chen to pay the IRS $1,885,094 in back taxes.
Chen’s sentencing is wrapped up but his case is far from over. The judge scheduled a restitution hearing for July to discuss making Chen’s victim investors whole.
Disclosure
Man Gets 6 Years for $25M Diamond and Crypto Ponzi Scheme
Jose Angel Aman, charged with operating the fraudulent investment scheme, was sentenced to serve six years in federal prison and pay over $23 million in victim restitution by a federal court in Florida.
US Justice Department Extradites Alleged Co-Founder of Crypto Ponzi Scheme From Panama
The accused, Gutemberg Dos Santos, has been charged in an indictment and was extradited from Panama on Nov. 25.
Chinese Authorities Have Seized a Massive $4 Billion in Crypto From PlusToken Scam
Cryptocurrencies worth billions of dollars have been seized during the police crackdown on the PlusToken Ponzi scheme in China.
#Bitcoin has been compared negatively to a lot of things over the years, such as tulips, rat poison, Ponzi schemes, snake oil, etc., but the one that has hurt the most by far has been the comparison to the Segway 🤣
#Bitcoin has been compared negatively to a lot of things over the years, such as tulips, rat poison, Ponzi schemes, snake oil, etc., but the one that has hurt the most by far has been the comparison to the Segway 🤣