David Carmona, founder of the cryptocurrency Ponzi scheme IcomTech, has received a 10-year prison sentence following a court ruling in the last week. This development was revealed on October 4 by the US Attorney’s Office, Southern District of New York.
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Carmona To Serve 121 Months In Jail For Crypto Fraud
According to the statement released, Carmona alongside other individuals launched IcomTech in 2018 which was presented as a crypto mining and trading company that helped investors earn profits by acquiring supposed crypto-related investment products.
Carmona and other promoters of IcomTech sold these fake investment funds to unsuspecting victims on which they guaranteed daily returns and promised to double their capital within six months. It was noted that purchases were made via cash, checks, transfers, and even cryptocurrencies.
Each investor was usually granted access to an online portal where they monitor their supposed accruing gains. However, these victims always found difficulty in withdrawing their profits or capital from the online platform resulting in complaints that were appeased with excuses, delays, and hidden charges for the few successful withdrawals. With increasing levels of complaints and rising tensions, IcomTech began offering native digital coins known as “Icoms” as compensation which they claimed would rise in value and could be utilized as a medium of exchange for goods and services.
This initiative also proved false leading to the ultimate collapse of the IcomTech Ponzi scheme.
Investigations by the US authorities soon revealed that Carmona and other co-conspirators of IcomTech had sold fake crypto investment products to unsuspecting investors, funds from which were diverted to lure more victims through flamboyant expositions as well as personal luxurious expenditure.
In December 2022, The US Attorney’s Office, Southern District of New York announced an indictment against Carmona accusing him of conspiracy to commit wire fraud to which he pled guilty. In October 2024, Judge Jennifer L. Rochon issued a 121-month imprisonment sentence to the crypto fraudster which will be followed by three years of supervised release.
Commenting on this development, US Attorney for the Southern District of New York, Damian Williams expressed much appreciation of Carmona’s prison sentence saying:
Carmona’s days of scamming honest people are at an end, and he now faces substantial time in prison.
Meanwhile, former CEO of IcomTech Marco Ruiz, Ochoa remains in jail following a five-year sentence in January.
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Crypto Market Overview
In other news, the total crypto market cap is valued at around $2.16 trillion following a 1.75% increase in the last day. The market leader Bitcoin, continues to trade around $62,206 with a 1.70% gain in the past 24 hours.
Featured image from iStock, chart from Tradingview