US Watchdog Charges Crypto Ponzi Scheme with Fraud & Money Laundering
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Aug. 19, 2020

The US Department of Justice (DoJ) has charged five individuals for an allegedly coordinated fraud and money laundering scheme.

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In a cooperation with the New York Field Office of Homeland Security Investigations, the DoJ announced charging of five men for defrauding individuals through investing in AirBit Club, a cryptocurrency mining and trading company.

Acting US Attorney Audrey Strauss says the defendants "put a modern-day spin on an age-old investment scam, promising extraordinary rates of guaranteed return on phantom investments in cryptocurrencies."

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The group of fraudsters traveled throughout the United States, Latin America, Asia, and Eastern Europe, where they reportedly hosted lavish expos and small community presentations aimed at convincing victims to buy AirBit Club memberships in cash.

After purchasing the membership, the group provided the victim with access to an online AirBit Club portal to view the purported returns on memberships.

Even though victims saw "profits" accumulate on their AirBit Club portal, the representations were knowingly false.

The defendants are presumed innocent unless and until proven guilty, the DoJ pointed out.

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In July, the DoJ charged a man for operating an unlicensed Bitcoin ATM network that laundered from $15 million up to $25 million from over the last six years.

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