Several executives of Airbit Club, a so-called cryptocurrency mining and trading platform, have pleaded guilty in New York to their roles in an international fraud and money laundering scheme, according to a press release from the Department of Justice on Wednesday.
Instead of 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…
Several executives of Airbit Club, a so-called cryptocurrency mining and trading platform, have pleaded guilty in New York to their roles in an international fraud and money laundering scheme, according to a press release from the Department of Justice on Wednesday.
Instead of 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 surrounding cryptocurrency to con unsuspecting victims around the world out of millions of dollars with false promises that their money was invested in cryptocurrency trading and mining,” said U.S. Attorney for the Southern District Damian Williams.
Launched in 2015, Airbit Club promised investors guaranteed profits in exchange for 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 to their roles earlier this year. Scott Hughes, a lawyer the DOJ claimed helped the co-founders launder money, pleaded guilty earlier this month.
They were also ordered to forfeit the proceeds of Airbit Club, including US dollars, cryptocurrency, Bitcoin and real estate with a current value of $100 million, according to the DOJ.
“These guilty pleas send a clear message that we are coming after all those who attempt to exploit cryptocurrency to commit fraud,” the DOJ said.
While victims of the scheme saw “profits” accumulate in their accounts, those representations were false, according to the DOJ statement. No Bitcoin
BTCUSD
mining or trading on behalf of victims took place, according to the DOJ. Instead, the DOJ says the ringleaders spent the money on cars, jewelry, luxury homes and financed exhibitions to recruit more victims.
Hughes is scheduled to be sentenced on August 9, and Rodriguez is scheduled to be sentenced on July 25.
The executives and attorney could not be reached for comment.
