AirBit Club Ponzi Operators Charged With Fraud And Money Laundering

The operators of a worldwide cryptocurrency-based Ponzi scheme have been charged with fraud and cash laundering following a United States Homeland Security Investigations (HSI) probe.

According to an announcement from the U.S. Department of Justice, 4 of the 5 alleged operators of AirBit Club, which allegedly netted tens of thousands and thousands of {dollars} from victims, have been arrested and resulting from seem in court docket on Aug. 18, whereas the fifth was arrested in Panama and is awaiting extradition to the U.S.

The scheme was launched in late 2015 and offered as a multi-level advertising and marketing membership within the cryptocurrency business. The defendants purportedly hosted lavish shows to encourage buyers to half with money, promising assured each day returns from cryptocurrency mining and buying and selling.

While an internet portal for buyers did certainly present these “profits” increase, there was the truth is no cryptocurrency mining or buying and selling happening. Instead the monies deposited have been spent on luxurious items and actual property, and have been allegedly used to finance much more extravagant shows to lure in additional victims.

As early as 2019, membership members wishing to withdraw proceeds have been met with excuses, delays and hidden charges, and reportedly advised that they have to recruit new members in the event that they needed to obtain the returns.

The defendants additionally tried to hide the scheme and their involvement by requesting membership funds in money, allegedly laundering at the least $20 million of proceeds by numerous trusts and financial institution accounts, and eradicating unfavourable details about the scheme from the web.

As Cointelegraph reported final month, one member of one other early crypto-based Ponzi scheme that netted $722 million pled responsible to counts of wire fraud and promoting unregistered securities.

AirBit Club Ponzi Operators Charged With Fraud And Money Laundering

Your Opinion Matters

Quality - 10


Total Score

Your feedback is important to us to improve our services. We constantly seek feedback to improve and evolve our service, whilst identifying opportunities to assist clients in realising their business objectives.

User Rating: 4.57 ( 7 votes)

Show More

Patricia Bakely

Earn Free Bitcoin Online with

Related Articles

Leave a Reply

Back to top button