Federal Court Sentences Crypto Ponzi Operator to 22 Years
The defendant ran a $1.2 billion scheme falsely marketed as a high-frequency arbitrage fund.
A federal judge in the Southern District of Florida on Monday sentenced the operator of a $1.2 billion crypto Ponzi scheme to 22 years in federal prison, following his conviction last year on wire fraud, securities fraud, and money laundering charges.\n\nProsecutors said the defendant marketed the scheme to retirees and faith-based community groups as a "fully automated arbitrage fund" generating risk-free returns. In reality, the scheme paid earlier investors with the proceeds of later ones and funded the defendant's lifestyle.\n\nThe court ordered restitution of $864 million, though prosecutors acknowledged recoveries are likely to be partial.
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