Nine people charged in massive crypto mining Ponzi scheme

Nine people have been charged in two separate cases in the US for their involvement in two alleged cryptocurrency Ponzi schemes, IcomTech and Forcount. The U.S. Attorney’s Office for the Southern District of New York unsealed the indictment on 14 December, revealing that both companies had promised investors "guaranteed daily returns" that could double their investment in six months. However, prosecutors allege that the firms were simply using money from later investors to pay earlier investors, while other funds were used to promote the companies and buy luxury items and real estate.

IcomTech and Forcount attracted investors through lavish events held in the US and abroad, promising financial freedom and wealth. Promoters reportedly showed up at these events in expensive cars and luxury clothing, boasting about the money they were making from investing in the companies. Investors were given access to a "portal" to monitor their returns.

However, both companies stopped making payments to investors in 2021, when users were unable to withdraw their purported returns. Forcount, which targeted primarily Spanish speakers, gathered over $8.4 million from "hundreds" of investors selling "memberships" offering a cut of its crypto trading and mining activities.

In an attempt to repay investors, both companies created tokens - IcomTech launched "Icoms" and Forcount launched "Mindexcoin". However, these tokens were unable to save the companies from legal trouble.

David Carmona, the founder of IcomTech, has been charged with conspiracy to commit wire fraud, carrying a maximum penalty of 20 years in prison. Forcount's founder, Francisley da Silva, has been charged with wire fraud, wire fraud conspiracy, and money laundering conspiracy, carrying a maximum of 60 years in prison if convicted of all charges. The promoters for the firms also face various charges relating to wire fraud, wire fraud and money laundering conspiracy, and making false statements.

The news of these charges serves as a warning to investors to be cautious of any company offering guaranteed returns, as such promises are often too good to be true. It is important for individuals to thoroughly research any investment opportunity and be aware of the risks involved. It is also crucial for investors to remember that the cryptocurrency market is highly volatile and can involve significant losses.