In a recent announcement from the Department of Justice, it has been revealed that three individuals are now facing prison sentences. Surprisingly, they were part of a global fraudulent operation tied to Crypto mining Ponzi scheme AirBit Club.
Scott Hughes, a legal practitioner, has received an 18-month prison sentence. He played a pivotal role in the illicit movement of approximately $18 million in fraudulent AirBit Club proceeds.
Moreover, Cecilia Millan, a high-ranking promoter connected to AirBit Club, has been sentenced to five years in prison. In contrast, Karina Chairez, another prominent promoter, has received a sentence of one year and one day.
Pablo Renato Rodriguez, co-founder of AirBit Club with Gutemberg Dos Santos, was previously sentenced to 12 years in prison. It’s worth noting that these sentences were delivered in response to their guilty pleas.
Operators of the crypto mining Ponzi scheme ordered to forfeit $100 million
Due to their participation in the fraudulent activities of AirBit Club, the defendants are now required to forfeit their ill-gotten gains. This sum amounts to a staggering $100 million. These assets encompass United States currency, Bitcoin holdings, and real estate properties.
U.S. Attorney Damian Williams highlighted the crucial roles played by these individuals in perpetuating the pyramid scheme. Millan and Chairez aggressively solicited investments from unsuspecting individuals, while Hughes, in his legal capacity, facilitated the money laundering process for AirBit Club.
Additionally, Williams emphasized the utmost importance of holding all individuals accountable for their involvement in cryptocurrency investment schemes.
The scheme, which commenced in late 2015, deceitfully pledged guaranteed profits to investors through financial contributions to club “memberships.”
AirBit Club was promoted as a cryptocurrency multi-level marketing venture, boasting claims of generating returns through cryptocurrency mining and trading activities.
However, victims soon discovered that their investments were far from secure, as they encountered difficulties in withdrawing their funds and were subjected to concealed fees.