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The Court of the Southern District of New York sentenced the co-founder of the international cryptocurrency pyramid AirBit Club, Pablo Renato Rodriguez, to 12 years in prison with the possibility of parole in three years.
According to the case file, in 2015, Rodriguez, together with Gutemberg Dos Santos, created a scheme to raise cash, promising daily income from investments in cryptocurrency trading and mining. Promoters promoted AirBit Club around the world through expensive presentations.
Users could see growing balances in their personal accounts, but this was a fiction. Those who tried to withdraw funds, the organizers of the scheme offered to pay a commission of 50% of the requested amount. Some depositors complained that they were faced with the closure of accounts allegedly due to the "financial crisis caused by the coronavirus."
Rodriguez, Dos Santos and three of their associates-Scott Hughes, Cecilia Millan and Karina Chayres-laundered the funds they received through cryptocurrencies, trust accounts and fictitious companies, then using them for personal needs.
The total fraudulent income from AirBit Club was approximately $100 million. The court intends to confiscate these assets.
In particular, Rodriguez, in addition to the prison term, is required to pay $ 65 million in compensation and transfer to the state revenue ~$1 million from the accounts of the company that had his Gulfstream Jet on its balance, 3,822. 98 BTC (more than $100 million at the time of writing), $896,483 cash, a residence in California, as well as various watches and jewelry.
Dos Santos, Hughes, Millan and Chayres pleaded guilty to fraud by electronic communication, conspiracy to commit money laundering and to commit bank fraud. The combined maximum penalty for the three counts is 70 years in prison. They are currently awaiting sentencing.
Recall that in 2019, AirBit Club became one of the largest pyramids in the Russian Federation. According to the Bank of Russia, about 60,000 people were involved in it, and the amount of investments exceeded 500 million rubles.
According to the case file, in 2015, Rodriguez, together with Gutemberg Dos Santos, created a scheme to raise cash, promising daily income from investments in cryptocurrency trading and mining. Promoters promoted AirBit Club around the world through expensive presentations.
Users could see growing balances in their personal accounts, but this was a fiction. Those who tried to withdraw funds, the organizers of the scheme offered to pay a commission of 50% of the requested amount. Some depositors complained that they were faced with the closure of accounts allegedly due to the "financial crisis caused by the coronavirus."
Rodriguez, Dos Santos and three of their associates-Scott Hughes, Cecilia Millan and Karina Chayres-laundered the funds they received through cryptocurrencies, trust accounts and fictitious companies, then using them for personal needs.
The total fraudulent income from AirBit Club was approximately $100 million. The court intends to confiscate these assets.
In particular, Rodriguez, in addition to the prison term, is required to pay $ 65 million in compensation and transfer to the state revenue ~$1 million from the accounts of the company that had his Gulfstream Jet on its balance, 3,822. 98 BTC (more than $100 million at the time of writing), $896,483 cash, a residence in California, as well as various watches and jewelry.
Dos Santos, Hughes, Millan and Chayres pleaded guilty to fraud by electronic communication, conspiracy to commit money laundering and to commit bank fraud. The combined maximum penalty for the three counts is 70 years in prison. They are currently awaiting sentencing.
Recall that in 2019, AirBit Club became one of the largest pyramids in the Russian Federation. According to the Bank of Russia, about 60,000 people were involved in it, and the amount of investments exceeded 500 million rubles.
