Crypto: Airbit Club executives pleaded guilty to fraud in $100 million crypto ‘Ponzi’ scheme: DOJ

by | Mar 8, 2023 | Stock Market

Several executives of Airbit Club, a so-called cryptocurrency mining and trading platform, have pleaded guilty in New York for their roles in an international fraud and money laundering scheme, according to a press release from the Department of Justice on Wednesday. Rather than Airbit offering members access to a club that invests in crypto trading and mining, as promised, the DOJ claimed the platform was a “Ponzi scheme,” designed to use member money “to line their own pockets,” in its press release.

“The defendants took advantage of the growing hype around cryptocurrency to con unsuspecting victims around the world out of millions of dollars with false promises that their money was being invested in cryptocurrency trading and mining,” said U.S. attorney for the Southern District Damian Williams. Airbit Club launched in 2015, and promised investors guaranteed profits in exchange of cash investments, the DOJ said. Pablo Renato Rodriguez, one of the co-founders, pleaded guilty on Wednesday. Another co-founder, Gutemberg Dos Santos pleaded guilty in October 2021, and three promoters involved in the scheme pleaded guilty for their roles earlier this year. Scott Hughes, an attorney who the DOJ claimed helped the co-founders launder money, pleaded guilty earlier this month. They also were ordered to forfeit proceeds from Airbit Club, including U.S. dollars, cryptocurrency, …

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