Airbit club was a multimillion-dollar cryptocurrency Ponzi scheme, where the victims were promised or guaranteed daily profits on any membership purchased with little investment, as little as $10. U.S. Department of Justice detailed that the Founders of this Ponzi scheme pleaded guilty to all the charges accused.
The U.S. government has taken this initiative to stop all the crypto scammers that scam people through this cryptocurrency Ponzi scheme. The U.S. government, in charge of justice, announced the six Airbit Club Ponzi scheme promoters pleaded guilty on Wednesday.
Airbit Club Team
These six individuals are the co-founder of the Airbit club Ponzi scheme, which purported to be a cryptocurrency mining platform and a trading company where the members will have to pay a certain amount for them to benefit in daily returns.
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The co-founders included (Pablo Renato Rodriguez and Gutemberg Dos Santos), the senior promoters (Krina Chairez, Cecilia Millian, and Jackie Aguilar), and Scott Hughes, who was the attorney who laundered Airbit Club.
After the defendants pleaded guilty, they collectively were ordered to forfeit their fraudulent proceeds from Airbit club. That includes seized bitcoin assets, U.S. currency, and real estate assets, whose current value is approximately $100 million since they started this Ponzi scheme.
The Department of Justice explained that in late 2015 the defendants launched the Airbit club as a multilevel marketing club in cryptocurrency. They traveled around the world, marketing their website. They hosted fabulous expos and small community presentations across the country they traveled in, the U.S., Asia, Latin America, and Eastern Europe, convincing people they should purchase Airbit club membership in cash.
After the victims had already purchased the membership, they were given access to an online portal with the false presentation of the profits from mining bitcoin and trading. Meanwhile, there were no such activities taking place.
They lend the victims money and enrich themselves, spending the money on expensive cars, luxury homes, and jewelry. They also used part of their money to finance extravagant expos and recruit more victims into the Airbit club.
The problem arose in early 2017 when many victims faced many challenges when withdrawing their money after the daily returns from the Airbit online portal, the Department of Justice stated. DOJ added that the victims raised the alarm to the promoters concerning the withdrawal challenges they were facing.
Still, the complaints were met with excuses, hidden fees, and delays, resulting in some victims not getting their money. All six defendants have pleaded guilty to all the charges: money laundering, wire fraud conspiracy, and bank fraud; these charges have a maximum imprisonment of 20 years, 26 years, and 30, respectively.
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