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AirBit Club Co-Founder Receives 12-Year Prison Sentence for Multimillion-Dollar Crypto Ponzi Scheme
September 27, 2023
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The platform promised guaranteed profits to investors through memberships but was a fraudulent operation resulting in losses for many unsuspecting individuals.
Summary
- Pablo Renato Rodriguez, co-founder of AirBit Club, has been sentenced to 12 years in prison for his role in a multimillion-dollar crypto Ponzi scheme.
- AirBit Club promised guaranteed profits to investors through memberships but actually operated a fraudulent scheme, leading to losses for unsuspecting individuals.
Justice Served: 12-Year Prison Sentence
In a ruling handed down by U.S. District Judge George B. Daniels, Pablo Renato Rodriguez, the co-founder of the infamous crypto Ponzi scheme, AirBit Club, has been sentenced to 12 years in prison.
AirBit Club, co-founded by Rodriguez and Gutemberg Dos Santos in 2015, promised guaranteed profits to investors in exchange for cash investments in club "memberships." The scheme preyed on unsuspecting individuals, promoting itself as a legitimate cryptocurrency mining and trading company. However, behind the scenes, Rodriguez and his co-conspirators orchestrated an elaborate money laundering operation to conceal their ill-gotten gains.
U.S. Attorney Damian Williams stated, "Rodriguez co-founded and led an international multimillion-dollar pyramid scheme that preyed on mostly unsophisticated investors with false promises... Instead of investing on behalf of investors, Rodriguez hid victims' money in a complex laundering scheme using Bitcoin... Rodriguez is one of many recent examples of individuals exploiting cryptocurrency to commit fraud."
Rodriguez and his accomplices, including Scott Hughes, Cecilia Millan, and Karina Chairez, promoted AirBit Club through lavish expos and presentations worldwide. Investors were fraudulently induced to buy memberships in cash, and they were provided with an online portal that falsely displayed profits from cryptocurrency trading and mining.
The scheme unraveled when victims attempted to withdraw their funds and were met with excuses, delays, and hidden fees. Rodriguez and his co-conspirators used various methods, including third-party crypto brokers and an attorney trust account managed by Hughes, to launder the scheme's proceeds.
Before AirBit Club, Rodriguez and Dos Santos had already faced legal action from the Securities and Exchange Commission for another pyramid investment scheme called Vizinova. Despite paying fines for their involvement in Vizinova, they continued their fraudulent activities with AirBit Club.
Rodriguez, who is 40 and from Irvine, California, has been sentenced to 12 years in prison and ordered to pay a forfeiture of $65 million. His co-conspirators are also awaiting sentencing.
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Do Kwon Faces Extradition to the United States Over Terra Crypto Collapse
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December 7, 2023
The decision, yet to be officially announced, follows the US Securities and Exchange Commission's (SEC) charges against Kwon for alleged crypto asset securities fraud.
Montenegro's Justice Minister is reportedly inclined to extradite Do Kwon, the founder of Terraform Labs, to the United States, according to a recent report from The Wall Street Journal.
Do Kwon, a key figure in the Terra blockchain ecosystem, is wanted by the United States and South Korea for his alleged involvement in the downfall of Terra's digital assets.
The decision follows Kwon's arrest in Montenegro last March. The collapse, which occurred in May 2022, triggered a broader market downturn affecting major players in the cryptocurrency space.
Legal Maneuvers and Extradition Talks
Kwon, who initially agreed to be extradited to South Korea, now faces the possibility of extradition to the United States. Montenegro's Justice Minister has privately communicated the decision to send Kwon to the US to answer charges related to financial crimes.
The specific charges include commodities fraud, securities fraud, wire fraud, and conspiracy to defraud and engage in market manipulation during Kwon's tenure at Terra.
Despite Kwon's earlier agreement for extradition to South Korea, the final decision rests with Justice Minister Milovic. The minister may await the outcome of a potential last-ditch appeal by Kwon against the court ruling.
Milovic emphasized that the decision would be made public "in a timely manner," leaving room for speculation on the intricate legal proceedings.
SEC Charges and Market Impact
The United States Securities and Exchange Commission (SEC) had previously charged Kwon with defrauding investors in crypto schemes in February. The legal action marked a pivotal moment, linking Kwon to allegations of orchestrating a multibillion-dollar crypto asset securities fraud.
In May 2022, Terraform Labs' collapse had a significant impact on the broader cryptocurrency market, impacting major platforms like Voyager Digital, BlockFi, Celsius Network, and FTX.
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Disclaimer: Overall it is vital to proceed with caution when purchasing tokens that have just been listed. For those who have not already read our articles on safety in the BSC it is crucial to reference the following items, HERE and HERE.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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