The U.S. District Court for the Southern District of New York is moving forward with sentencing proceedings for a key figure behind the cryptocurrency Ponzi scheme AirBit Club.
October 3, U.S. Attorney’s Office, New York declare Sentences handed down for three of the five surviving defendants in the AirBit case, including Scott Hughes, Cecilia Millan and Karina Chairez . The verdict comes months after all three defendants in the AirBit case pleaded guilty to money laundering and other charges in early 2023.
Hughes, a lawyer, was sentenced to 18 months in prison for laundering approximately $18 million in proceeds from the AirBit Club fraud. Milan, a senior promoter of the AirBit Club, was sentenced to five years in prison. Chairez, another senior promoter of AirBit Club, was sentenced to one year and one day in prison.
In addition, Hughes was sentenced to three years of supervised release. Milan and Shires were also sentenced to three years and three months of supervised release, respectively.
The AirBit Club program was launched in late 2015 and was promoted as the cryptocurrency industry’s “multi-level marketing club.” The defendants provided promising presentations, tricking investors into thinking AirBit Club guaranteed daily returns from cryptocurrency mining and trading. But instead of funding the crypto business promoted by AirBit (which has never been the case), the $100 million from investors went into the pockets of its founders and promoters.
Although some users complained about withdrawal delays and hidden fees in early 2016, the AirBit Club program manage Maintain its fraudulent activities into 2020.
U.S. attorney Damian Williams emphasized in announcing the verdict that Hughes, Milan and the chairman all played key roles in continuing the AirBit Club pyramid scheme.
related: 5 highlights from the first day of Sam Bankman-Fried’s trial
“As top promoters, Milan and the Chairman aggressively sought investment for years and misled diligent and inexperienced investors in order to enrich themselves,” Williams said. He added:
“Today’s sentencing sends a message that anyone who facilitates cryptocurrency investment schemes – not just those at the top of the pyramid – will face the serious consequences of such crimes.
Previously, AirBit Club co-founder Pablo Rodriguez was sentenced to 12 years in prison in late September 2023. Another co-founder, Dos Santos, pleaded guilty to charges of conspiracy to commit wire fraud, money laundering and conspiracy to commit bank fraud and is expected to be sentenced to 12 years in prison. Sentenced on October 4, 2023.
Santos will be the last of a total of six AirBit Club defendants to be sentenced. Jackie Aguilar pleaded guilty in February 2023. It is said He died in May, weeks before sentencing.
Magazine: Blockchain Detective – Mt. Gox Collapse Witnessed the Birth of Chainaanalysis
Svlook
