IcomTech Execs to Pay $5M in Restitution for Defrauding Investors with False Crypto Promises
Five individuals associated with IcomTech, a cryptocurrency Ponzi scheme that defrauded investors of $8.4 million, were ordered by a federal court to pay over $5 million in restitution and penalties.
The December 11 ruling by the United States District Court for the Central District of California also included prison sentences for three of the defendants.
Operating between 2018 and 2019, IcomTech marketed itself as a cryptocurrency platform offering daily returns of up to 2.8%. Investors were convinced their funds were being used for cryptocurrency trading and mining, facilitated through Icoms, a proprietary token. However, investigators found no evidence of such activities. Instead, the defendants misused the funds for personal expenses, including luxury goods and high-end vacations.
David Carmona, the leader of the scheme, alongside his partner David Brend, received 10-year prison sentences. Another conspirator, Marco A. Ruiz Ochoa, was sentenced to five years. Two additional defendants, Juan Arellano Parra and Moses Valdez, were held accountable through financial penalties and were permanently banned from engaging in any CFTC-regulated activities.
The Commodity Futures Trading Commission (CFTC) began its investigation into IcomTech in 2023 after complaints from defrauded investors. The case highlighted a common pattern in cryptocurrency fraud, where victims are enticed by promises of outsized returns and persuaded to recruit others, fueling a cycle of deception.
The court also ordered the forfeiture of more than $1.2 million in assets linked to the defendants. Despite this recovery, many victims are unlikely to recoup their full losses.
The post IcomTech Execs to Pay $5M in Restitution for Defrauding Investors with False Crypto Promises appeared first on CryptoPotato.
Text source: CryptoPotato
