The US Department of Justice has accused two people, an Australian citizen and a California resident, of creating several cryptocurrency schemes and stealing $25 million from investors.
According to the US Department of Justice, David Saffron and Vincent Mazzotta worked on behalf of several organizations with different names: Federal Crypto Reserve, Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital and Cloud9Capital.
The organizations encouraged Americans to invest in cryptocurrency trading using an automated bot, promising high returns. According to the Ministry of Justice, the suspects spent the investors’ money on a luxurious lifestyle. When victims of fraud tried to return their funds, representatives of the Federal Crypto Reserve intervened, promising assistance in returning the money. However, in fact, the “federal reserve” was managed by the same Saffron and Mazzotta, law enforcement officers insist. And they communicated with investors under the nicknames Bitcoin Yoda, David Gilbert, Blue Wizard and David Gabe.
The men are charged with conspiracy to commit money laundering, wire fraud, and obstruction of justice. Both face a maximum sentence of 75 years in prison, with Saffron facing an additional 10 years for committing serious crimes while in custody.
According to the US Department of Justice, David Saffron and Vincent Mazzotta worked on behalf of several organizations with different names: Federal Crypto Reserve, Circle Society, Bitcoin Wealth Management, Omicron Trust, Mind Capital and Cloud9Capital.
The organizations encouraged Americans to invest in cryptocurrency trading using an automated bot, promising high returns. According to the Ministry of Justice, the suspects spent the investors’ money on a luxurious lifestyle. When victims of fraud tried to return their funds, representatives of the Federal Crypto Reserve intervened, promising assistance in returning the money. However, in fact, the “federal reserve” was managed by the same Saffron and Mazzotta, law enforcement officers insist. And they communicated with investors under the nicknames Bitcoin Yoda, David Gilbert, Blue Wizard and David Gabe.
The men are charged with conspiracy to commit money laundering, wire fraud, and obstruction of justice. Both face a maximum sentence of 75 years in prison, with Saffron facing an additional 10 years for committing serious crimes while in custody.
