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IcomTech founder sentenced to 10 years for $8.4M crypto fraud

IcomTech founder sentenced to 10 years for $8.4M crypto fraud

GrafaGrafa2024/10/07 02:50
By:Mahathir Bayena

David Carmona, the founder of the cryptocurrency Ponzi scheme IcomTech, has been sentenced to 10 years in prison for conspiracy to commit wire fraud.

The sentencing follows Carmona’s involvement in a scheme that defrauded investors out of $8.4 million by promising high returns through supposed cryptocurrency trading and mining operations.

According to U.S. Attorney Damian Williams, IcomTech preyed on working-class individuals, promising them financial freedom in exchange for their investments.

“In reality, IcomTech was doing no such thing. It was all a lie,” Williams said, adding that when the scheme collapsed, victims were left with nothing.

Carmona’s victims were convinced they could double their investments every six months, but this promise was never fulfilled.

Carmona, along with other promoters of IcomTech, traveled across the U.S. and abroad, hosting extravagant expos to lure investors.

They often flaunted their wealth by arriving in luxury cars and wearing expensive clothing, creating the illusion of financial success.

However, as complaints mounted from investors who were unable to withdraw their profits, IcomTech introduced a worthless token called “Icoms,” further adding to the losses as the company collapsed in 2019.

Many investors reported issues with withdrawing funds from the platform, and those who attempted withdrawals were met with delays, excuses, and hidden fees.

As IcomTech fell apart, payments ceased, and the victims were left with significant losses.

Carmona, who pleaded guilty in December 2023, was sentenced to 121 months in prison, followed by three years of supervised release.

Other key figures in the scheme, including former CEO Marco Ruiz Ochoa, who was sentenced to five years in prison, and promoters David Brend and Gustavo Rodriguez, have also been convicted of conspiracy to commit wire fraud.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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