An Arizona man who masterminded a $13 million crypto Ponzi scheme pleaded responsible this week to cash laundering and conspiracy to impede justice expenses.
The U.S. Division of Justice (DOJ) says Vincent Anthony Mazzotta Jr., 54, schemed together with his co-defendant David Saffron and others to fraudulently promise buyers high-yield income from crypto investments that pretended to depend on automated buying and selling robots powered by synthetic intelligence (AI).
Mazzotta Jr. lured buyers by convincing them to sink cash into a number of crypto funding firms. When these firms disappeared with the buyers’ capital, he went one step additional and created a faux authorities entity known as the Federal Crypto Reserve (FCR), which solicited hundreds of extra {dollars} from victims by pretending to research those self same corporations.
The DOJ says Mazzotta Jr. additionally obstructed justice after Saffron’s preliminary arrest by destroying proof at his co-defendant’s residence, and he tried to falsify the data of his enterprise, Runway Magnificence Inc., to cover his participation within the fraud from a federal grand jury.
Invoice Essayli, US Legal professional for the Central District of California, warns that criminals like to make use of the “relative novelty” of crypto property to prey on victims.
Mazzotta Jr. faces a most of 10 years in jail on the cash laundering cost and 5 years for conspiring to impede justice.
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