David

Bitcoin

Read

The U.S. Department of Justice (DoJ) has charged an Australian national and a California man with operating a $25 million crypto ponzi scheme. 
In a <a href="https://www.justice.gov/opa/pr/two-men-charged-operating-25m-cryptocurrency-ponzi-scheme" target="_blank" rel="noreferrer noopener">press release</a> on Dec. 12, 2023, the <a href="https://crypto.news/tag/doj/" target="_blank" rel="noreferrer noopener">DoJ</a> said the two men, identified as David Gilbert Saffron of Australia and Vincent Anthony Mazzotta Jr. of California, allegedly operated a fraudulent scheme by promising investors to employ an artificial intelligence (<a href="https://crypto.news/tag/ai/" target="_blank" rel="noreferrer noopener">AI</a>) automated trading bot to trade victims’ funds in crypto and earn high-yield profits. 
However, instead of investing victims’ funds in crypto, the two men allegedly misappropriated victims’ funds to “pay for personal expenses including private chartered jet flights, luxury hotel accommodations, private mansion rentals, a personal chef, and private security guards,” the DoJ says. 
 You might also like: <a href="https://crypto.news/newly-published-doj-document-reveals-binances-supervision-requirements/"> Newly published DoJ document reveals Binance’s supervision requirements </a> 
According to the regulator, Saffron often solicited victims under various aliases, including David Gilbert, the Blue Wizard and Bitcoin Yoda, in an effort to conceal his identity. Moreover, to conceal the location of victims’ crypto funds, the defendants used <a href="https://crypto.news/tag/mixer/" target="_blank" rel="noreferrer noopener">crypto mixers</a>. 
Saffron and Mazzotta are accused of multiple criminal offenses, including conspiring to commit wire fraud and money laundering. If found guilty, they each face a potential prison sentence of up to 20 years for each charge of conspiracy to commit wire fraud and money laundering as well as 20 years for each wire fraud charge, 10 years for each money laundering charge, and five years for conspiring to obstruct justice. Saffron additionally faces up to 10 years in prison, to be served consecutively to any other sentence, for committing felonies while on pre-trial release, the press release reads. 
 Read more: <a href="https://crypto.news/doj-captures-9m-in-tethers-usdt-from-pig-butchering-operation/"> DoJ captures $9m in Tether’s USDT from “pig butchering” operation </a>

DoJ charges two men for operating $25m AI crypto ponzi scheme

crypto.news

Other articles published on Dec 13, 2023

LUNC News: Legally Absolved Route To Burn 800 Million USTC For Terra Classic Revival

Why is WRX Price Up By 20%?

Best Altcoins to Buy Now Before Market Explodes: Avalanche (AVAX), Toncoin (TON), Litecoin (LTC),...

Binance objects to SEC including $4B settlement in lawsuit

Bitcoin: 13 Years Ago Satoshi Nakamoto Posted His Last Message

BTC Whale Transfers to Exchanges Pick Up Amid Market Pullback

Join our free newsletter for daily crypto updates!