Former CEO of a crypto company was sentenced to prison, in addition, to pay $9 million for involving his company in a major Ponzi scheme.
The fraud cost hundreds of investors millions of dollars and the U.S government and regulatory agencies got involved into solving this so-called ‘’crypto fraud’’.
33-year-old Josh Garza was sentenced by a district court judge in Connecticut to a 20-month prison sentence, 6 months house arrest and paying a grand total of $9 million back to the investors. He is believed to take a major role in a Ponzi scheme for issuing a new cryptocurrency named PayCoin that allegedly entitled investors a portion of another company’s profits.
Garza owned four companies and he conducted his plan through all four of them for 5 years. His companies sold rights to cryptocurrency mining operations and investors were tricked into buying a portion of these operations through his PayCoin. The district judge said that despite the operation seeming legitimate, there are a few clear signs that Garza could potentially scam them. For example, he guaranteed that the price of virtual currencies will not go below $20 per unit because he had a $100 million digital currency back up to pump the price. He did, however, plead guilty for defrauding investors. This is why he was ordered to pay full restitution to all investors.
His arrest comes after another crackdown on cryptocurrencies by regulatory bodies when a federal judge in New York ruled ICOs as securities. The SEC and other regulatory bodies are continuing their path to handling all the crypto-related scams in near future.
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"We believe this thesis still remains intact which could mean seeing a break of the lows in the coming weeks. A 25% selloff in BTC from the current lows of $3,200 would be to roughly $2,400."He also shared that the next sell-off could be just what the crypto market needs in order to finally break the backs of the bears and reach a new bull momentum in 2019.
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“Bitcoin is now accessible at your local grocery store via Coinstar kiosks, and this offering will make it even easier for consumers to participate in this dynamic new economy.”Coinstar, on the other hand, offers coin-to-cash conversion in their kiosks in multiple countries around the world but it still remains unknown whether the Bitcoin feature will expand just as quickly as it did in the US. Coinstar’s CEO Jim Gaherty noted: Coinstar offers coin-to-cash conversion kiosks in various countries throughout the world. It remains unknown whether the Bitcoin feature will expand beyond the U.S., while the company did not provide figures on how many machines will offer it.
“Coinstar is always looking for new ways to offer value to our consumers when they visit our kiosks.’’According to CoinATMRadar industry monitoring resource, there are more than 4187 Bitcoin ATMs worldwide and more than 60 percent or 2516 are in the United States. The market has grown plenty over the years and many operators are trying to get control of what they think to become a fairly popular trend for crypto usage.
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