A US resident who masqueraded as a cryptocurrency specialist has been sentenced for embezzling cryptocurrency and income fraudulently obtained from buyers. 

The US Office of Justice (DoJ) reported on Tuesday that Jerry Ji Guo, a resident of San Francisco, will shell out six months driving bars and has been ordered to spend $4.4 million in restitution for his functions.

The 33-calendar year-aged former journalist admitted to reshaping himself as an skilled and advisor on cryptocurrency and First Coin Offerings (ICOs). 

ICOs are investor situations that originally formed to give rising assignments an alternate funding route to angel financial investment or loans. Contributors in legit ICOs get job-branded tokens for their contribution, and need to the project do well, this could permit traders to experience considerable revenue. Even so, ICOs are dangerous and have paved the way for exit scams and fraud.  

In Guo’s case, he conned buyers by promising he would accomplish “consultancy, advertising and marketing, and publicity products and services,” in accordance to US prosecutors. However, alternatively of preserving his promise, investor funds and cryptocurrency — together with Bitcoin (BTC) and Ethereum (ETH) finished up staying drained from wallets applied by corporations to deposit resources up-entrance in get to protected his ‘services.’  

The cryptocurrencies taken from investors have surged in price in excess of the previous number of yrs and the mixed funds, with income, are now value an believed $20 million. 

A federal grand jury indicted Guo in 2018 and he pleaded guilty to one particular rely of wire fraud a 12 months later on. 7 other counts of wire fraud had been dismissed. At the time of the indictment, Guo faced up to 20 a long time at the rear of bars.

Together with the prison sentence and reparation, Guo will also have to submit to three several years of supervised release.

The DoJ’s Funds Laundering and Asset Recovery Portion acquired warrants in February 2020 to seize the stolen resources and suggests that the federal government “is [now] in a placement to return the stolen residence to the victims.”

Before this thirty day period, US prosecutors sentenced the previous operator of RG Cash, Rossen Iossifov, to 10 yrs in jail after he was observed responsible of laundering cash from online auction ripoffs through his cryptocurrency exchange. 

The DoJ and FBI are frequently hunting down the perpetrators of cryptocurrency-connected fraud and strategies, and now, the US Securities and Trade Commission (SEC) maintains a checklist of the two fiat financial investment and crypto businesses that people should really be wary of. 

In January, SEC extra a additional eight cryptocurrency corporations to its watch listing which tout everything from unrealistic returns to ICO legal safety, and possibility-no cost cryptocurrency trading.

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