Pablo Rodriguez, the co-founder of the cryptocurrency pyramid scheme AirBit Club, has been sentenced to 12 years in prison for wire fraud conspiracy charges. He and his co-conspirators were accused of running a global scam that misled investors with false promises of cryptocurrency riches and misused their investments for personal gain. The scheme involved enticing victims to invest in AirBit Club by offering guaranteed profits and memberships to a cryptocurrency multilevel marketing club. The perpetrators spent user funds on luxury items while recruiting more victims through lavish expos. Victims encountered obstacles and hidden fees when trying to withdraw funds from the online portal, and some lost their principal investments due to false claims related to the COVID-19 pandemic.
The fraudulent scheme orchestrated by Rodriguez and his associates resulted in over $100 million being siphoned. They traveled globally to promote AirBit Club, hosting expos and presentations to persuade individuals to buy memberships. The online portal showed fake profits accumulating, leading victims to believe their investments were being used for cryptocurrency activities. However, it was later discovered that no such activities took place and the perpetrators enriched themselves with the funds.
In addition to the 12-year prison term, Rodriguez will face an additional three years of supervised release. The judge ordered this release to take effect after his prison term is completed. The authorities accused Rodriguez and his co-conspirators of attempting to hide the scheme and its proceeds by having victims buy memberships with cash and using third-party cryptocurrency brokers. Money was laundered through various bank accounts, including an attorney trust account managed by one of the co-conspirators.
Rodriguez and Dos Santos, the other co-founder of AirBit Club, had previously been sued by the US Securities and Exchange Commission (SEC) for another pyramid scheme called ‘Vizinova’ and paid $1.7 million in penalties. Hughes, a lawyer who represented them in the Vizinova case, later helped them in the AirBit Club scheme by removing negative information about both of them from the internet.
This case highlights the dangers of pyramid schemes and fraudulent Investment schemes in the cryptocurrency industry. Investors must be cautious and verify the legitimacy of any investment opportunity before committing their funds. The sentencing of Rodriguez sends a message that such illegal activities will not be tolerated, and those found guilty will face severe consequences..
#AirBit #Club #CoFounder #Sentenced #Years #Prison #Crypto #Pyramid #Scheme
The fraudulent scheme orchestrated by Rodriguez and his associates resulted in over $100 million being siphoned. They traveled globally to promote AirBit Club, hosting expos and presentations to persuade individuals to buy memberships. The online portal showed fake profits accumulating, leading victims to believe their investments were being used for cryptocurrency activities. However, it was later discovered that no such activities took place and the perpetrators enriched themselves with the funds.
In addition to the 12-year prison term, Rodriguez will face an additional three years of supervised release. The judge ordered this release to take effect after his prison term is completed. The authorities accused Rodriguez and his co-conspirators of attempting to hide the scheme and its proceeds by having victims buy memberships with cash and using third-party cryptocurrency brokers. Money was laundered through various bank accounts, including an attorney trust account managed by one of the co-conspirators.
Rodriguez and Dos Santos, the other co-founder of AirBit Club, had previously been sued by the US Securities and Exchange Commission (SEC) for another pyramid scheme called ‘Vizinova’ and paid $1.7 million in penalties. Hughes, a lawyer who represented them in the Vizinova case, later helped them in the AirBit Club scheme by removing negative information about both of them from the internet.
This case highlights the dangers of pyramid schemes and fraudulent Investment schemes in the cryptocurrency industry. Investors must be cautious and verify the legitimacy of any investment opportunity before committing their funds. The sentencing of Rodriguez sends a message that such illegal activities will not be tolerated, and those found guilty will face severe consequences..
#AirBit #Club #CoFounder #Sentenced #Years #Prison #Crypto #Pyramid #Scheme
