Promoters and Attorney of $100 Million Crypto Mining Ponzi Scheme Sentenced to Prison

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By BitcoinWiki News

Key Takeaways:

– Three individuals involved in a global fraud and money laundering operation linked to the cryptocurrency scheme AirBit Club have received prison sentences.
– Scott Hughes, an attorney, was sentenced to 18 months in prison for laundering approximately $18 million in fraudulent AirBit Club proceeds.
– Cecilia Millan, a senior promoter, will serve five years, and Karina Chairez, another senior promoter, received a sentence of one year and one day.
– Pablo Renato Rodriguez, co-founder of AirBit Club, was previously sentenced to 12 years in prison.
– The defendants have been ordered to forfeit their ill-gotten gains, including U.S. currency, Bitcoin, and real estate, totaling around $100 million.
– The scheme falsely promised guaranteed profits through cash investments in club “memberships” and was marketed as a cryptocurrency multi-level marketing venture.
– Victims faced difficulties withdrawing their funds and encountered hidden fees.


Title: Three Individuals Sentenced in AirBit Club Cryptocurrency Fraud Case

Introduction:
Three individuals involved in a global fraud and money laundering operation connected to the cryptocurrency scheme, AirBit Club, have received prison sentences, according to the Department of Justice. The defendants, Scott Hughes, Cecilia Millan, and Karina Chairez, played various roles in the scheme, while Pablo Renato Rodriguez, co-founder of AirBit Club, had previously been sentenced. All individuals pleaded guilty to their charges.

Summary of Sentences:
Scott Hughes, an attorney who played a significant role in laundering approximately $18 million in fraudulent AirBit Club proceeds, has been sentenced to 18 months in prison. Cecilia Millan, a senior promoter of AirBit Club, received a five-year sentence, while Karina Chairez, another senior promoter, was sentenced to one year and one day.

Forfeiture of Assets:
The defendants in the AirBit Club fraud case have also been ordered to forfeit their ill-gotten gains, totaling around $100 million. This includes U.S. currency, Bitcoin, and real estate.

Perpetrators and Their Roles:
U.S. Attorney Damian Williams emphasized the roles played by these individuals in perpetuating the pyramid scheme. Millan and Chairez were actively involved in soliciting investments from unsuspecting individuals, while Hughes used his position as an attorney to launder money for AirBit Club. Williams stressed the importance of holding all individuals involved in cryptocurrency investment schemes accountable for their actions.

The AirBit Club Scheme:
The AirBit Club scheme began in late 2015 and falsely promised investors guaranteed profits through cash investments in club “memberships.” Marketed as a cryptocurrency multi-level marketing venture, AirBit Club claimed to generate returns from cryptocurrency mining and trading. However, victims soon discovered that their investments were not secure, facing difficulties withdrawing their funds and being subjected to hidden fees.

Conclusion:
The prison sentences and asset forfeitures handed down in the AirBit Club fraud case demonstrate the commitment to bringing those involved in cryptocurrency investment schemes to justice. These actions highlight the importance of protecting unsuspecting individuals from fraudulent schemes and holding the perpetrators accountable for their actions.

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