California court orders $5 Million in Ponzi scheme penalties
The group, led by David Carmona, misappropriated $8.4 million from over 190 investors by promoting false promises of 100% returns every six weeks.
A California court has ordered five individuals to pay over $5 million for their roles in the IcomTech Ponzi scheme. Between 2018 and 2019, the scheme defrauded investors through a fake Bitcoin trading platform. IcomTech promised 100% returns every six weeks, ultimately misappropriating $8.4 million of victims’ funds.
The group, led by founder David Carmona, lured over 190 investors with lavish expos and false claims of wealth. The court found them guilty of violating the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) regulations. Each was fined $1 million and banned from trading in CFTC-regulated markets.
In addition to financial penalties, the individuals received prison sentences ranging from five to ten years. The CFTC emphasised the importance of protecting investors from such schemes, urging vigilance in the cryptocurrency sector.
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