Founders of Major Crypto Ponzi Scheme Sentenced to Prison for Defrauding Investors
05.12.2024 20:30 1 min. read Alexander Stefanov
David Brend and Gustavo Rodriguez, the masterminds behind the IcomTech cryptocurrency Ponzi scheme, have been sentenced to 10 and 8 years in prison, respectively.
Their scheme, which began in 2018, falsely claimed to offer cryptocurrency trading and mining services, but instead used new investments to pay returns to earlier participants, typical of a Ponzi operation.
The pair used flashy lifestyles to lure victims and offered a fake online platform to track profits, though withdrawals were impossible.
When complaints arose, they introduced a worthless cryptocurrency token called “Icoms,” promising future value. The scheme collapsed by 2019, leaving investors with heavy losses.
Rodriguez was ordered to forfeit $40,000, while Brend faces additional financial penalties. This case highlights the risks of unregulated crypto investments.
U.S. Attorney Damian Williams praised the investigation, which was supported by Homeland Security’s El Dorado Task Force, SEC, and CFTC.
-
1
Mango Markets Hacker Sentenced for Separate Criminal Charges
03.05.2025 11:00 1 min. read -
2
North Korean Agent Exposed in Crypto Job Scam at Kraken
04.05.2025 20:00 2 min. read -
3
ZachXBT Helps Freeze $7M After $330M Bitcoin Theft From Elderly Holder
05.05.2025 16:00 1 min. read -
4
$330M Bitcoin Heist Traced to Social Engineering Scam Targeting U.S. Senior
04.05.2025 12:00 2 min. read -
5
Samourai Wallet Case Faces Scrutiny After Allegations of Withheld Evidence
07.05.2025 13:00 2 min. read
Man Sentenced to 30 Years for Using Crypto to Fund ISIS Operations
A U.S. court has handed down a 30-year prison sentence to Mohammed Azharuddin Chhipa, who was found guilty of financing terrorism through cryptocurrency.
Celsius CEO Sentenced to 12 Years Over $5 Billion Crypto Scandal
A major chapter in crypto’s legal reckoning closed this week as Alex Mashinsky, once a prominent name in digital lending, received a 12-year prison sentence.
Alex Mashinsky Seeks One-Year Sentence as DOJ Pushes for 20 Years
Former Celsius CEO Alex Mashinsky is asking for a significantly reduced prison sentence ahead of his May 8 sentencing, with his legal team pushing back hard against the U.S. Department of Justice’s call for a 20-year term.
Samourai Wallet Case Faces Scrutiny After Allegations of Withheld Evidence
The legal battle against the creators of Samourai Wallet has taken a sharp turn, as defense attorneys accuse federal prosecutors of suppressing a key legal interpretation from the Treasury Department that could dismantle the core of the government’s case.
-
1
Mango Markets Hacker Sentenced for Separate Criminal Charges
03.05.2025 11:00 1 min. read -
2
North Korean Agent Exposed in Crypto Job Scam at Kraken
04.05.2025 20:00 2 min. read -
3
ZachXBT Helps Freeze $7M After $330M Bitcoin Theft From Elderly Holder
05.05.2025 16:00 1 min. read -
4
$330M Bitcoin Heist Traced to Social Engineering Scam Targeting U.S. Senior
04.05.2025 12:00 2 min. read -
5
Samourai Wallet Case Faces Scrutiny After Allegations of Withheld Evidence
07.05.2025 13:00 2 min. read