Founders of Multimillion-Dollar Global Crypto Ponzi Scheme ‘Airbit Club’ Plead Guilty – Regulation Bitcoin News
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Two founders of the multimillion-dollar global crypto Ponzi scheme, Airbit Club, have pleaded guilty to their involvement in scamming thousands of investors worldwide. The U.S. Department of Justice (DOJ) revealed that Pablo Renato Rodriguez and Gutemberg Dos Santos admitted to their roles in operating a fraudulent investment scheme that has managed to swindle investors for years.
Airbit Club was founded in 2015 by Rodriguez and Dos Santos, promising investors high returns on their cryptocurrency investments through an automated trading program. The two masterminds lured unsuspecting investors to join their Ponzi scheme by offering them lucrative returns without delivering any actual proof of how the trading algorithm worked.
Between 2015 and 2020, the duo managed to attract over 500,000 investors in various countries worldwide, including the United States. These investors purchased memberships, which allowed them to access the automated trading program and receive payouts on their investments’ profits. Instead, Airbit Club simply used new investors’ funds to pay out existing members, a classic Ponzi scheme structure.
Rodriguez and Dos Santos have pleaded guilty to conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in jail. The two also face a potential fine of $250,000 or more.
The DOJ has previously warned investors about Airbit Club’s fraudulent activities, calling the scheme a “classic Ponzi scheme.” As a result of the DOJ’s efforts, various law enforcement agencies worldwide, including Spain’s Policia Nacional, helped crack down on Airbit Club’s activities and arrest the founders.
The DOJ has praised the various agencies’ cooperation, stating that their efforts have made it clear that criminals cannot use technological advances such as cryptocurrency to evade prosecution or scam unfortunate investors. The DOJ has vowed to continue to bring to justice those engaged in fraudulent schemes.
The Airbit Club case shows the significance of regulation in the cryptocurrency space, where scams and fraudulent activities have become rampant. The lack of a robust, global regulatory framework has made it challenging to hold crypto scammers accountable. Ponzi schemes, in particular, have become a popular form of cryptocurrency fraud because of the anonymity provided by cryptocurrencies.
In conclusion, the guilty plea of Airbit Club founders has been a significant win for law enforcement agencies worldwide, investors, and the cryptocurrency industry. The DOJ’s efforts have sent a strong message to crypto scammers that they will not get away with their fraudulent activities, and investors should exercise caution when investing in the cryptocurrency space. Regulations and responsible investing are necessary to prevent further cryptocurrency Ponzi schemes.
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