The US DoJ extradited a key member of a popular crypto Ponzi scheme from Panama as we are reading more in our latest crypto news.
The U.S Department of Justice, US DoJ extradited a key member of a fraudulent crypto mining and trading platform from Panama to the United States and the AirBitc Club co-founder will now face charges in the states. According to an announcement by the attorney for the Southern District of New York Audrey Strauss, the US authorities were able to extradite Guetmberg Dos Santos who is the co-founder of the popular crypto Ponzi scheme AirBit Club. Dos Santons has two citizenship, one from Brazil one from the United States but he was now extradited to the US from Panama. According to Strauss, Dos Santos’ repatriation was possible thanks to the help of the Homeland Security Investigations.
The US authorities arrested five individuals that were involved in the AirBit Club scheme which duped investors out of $20 million at least. Operators of the Ponzi scheme ran false ads that promised huge returns from BTC mining and trading. However, the DoJ at that time alleged that the group wanted to live extravagant lifestyles with the victim’s funds. While spending the money on houses and luxurious cars, they recruited even more victims across the US and other countries as well. According to a statement from the DOJ:
“The extradition of Dos Santos reflects the determination of agents from HSI New York’s El Dorado Financial Crimes Task Force to dismantle global criminal organizations, wherever the investigation takes us. Utilizing our broad authorities and network of law enforcement partners, HSI will continue to hunt those who allegedly prey upon innocent citizens for financial gain.”
If Dos Santos is found guilty, the co-founder of the AirBit Club Ponzi scheme will face up to 30 years in prison. The regulatory authorities are warning investors about these fake crypto-related schemes which promise high returns. According to a report, the Chinese authorities confiscated about $4 billion worth of crypto from the PlusToken Scammers. PlusToken was the biggest crypto Ponzi scheme that promised high returns similar to the other crypto fraudulent projects. The law enforcement of China started investigating the project after it shut down back in 2019. The police arrested 27 members of the project with 82 other less-relevant members.
Another major fraudulent crypto scheme OneCoin stole about $4 billion from investors with the leader Ruja Ignatova known as the “crypto Queen” still at large. Ruja’s brother, on the other hand, was arrested by the US authorities in 2019 and he could face 90 years in prison.
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