Throughout a courtroom session on December 2, held within the Southern District of New York, David Brend was handed a 120-month sentence by Decide Jennifer Rochon for his fraudulent cryptocurrency scheme tied to the IcomTech platform.
Along with the decade-long imprisonment, Brend faces monetary penalties, together with $40,000 in forfeiture. He’s required to report back to jail authorities by December 16.
IcomTech, posing as a respectable cryptocurrency mining and buying and selling agency, orchestrated a scheme that defrauded hundreds of traders of over $8 million between 2018 and 2019.
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Brend, together with different promoters, traveled throughout the nation to market the platform’s funding alternatives, promising “monetary freedom” to potential traders. As an alternative of participating in real enterprise actions, the corporate utilized funds from new contributors to pay returns to earlier traders—a traditional Ponzi scheme tactic.
The promoters diverted massive parts of the victims’ funds for private enrichment, together with luxurious purchases and actual property acquisitions. In keeping with the US Legal professional’s workplace, they withdrew massive sums as money and spent cash on promotional occasions to additional the misleading enterprise.
In the meantime, Gustavo Rodriguez, one other determine within the fraud and the designer of IcomTech’s web site, obtained an eight-year sentence roughly a month earlier than Brend’s sentencing.
The sentencing of IcomTech’s promoter exhibits the rising scrutiny round cryptocurrency’s darker facet. In the meantime, Roger Ver, generally known as “Bitcoin Jesus,” is making headlines by difficult tax evasion allegations. How did the case unfold? Learn the total story.
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