Founders of Major Crypto Ponzi Scheme Sentenced to Prison for Defrauding Investors

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.

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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.

Alexander Stefanov