According to Cointelegraph, co-founder of AirBit Club, a cryptocurrency pyramid scheme, that swindled investors of over $100 million. It is believed that they were sentenced to 12 years in prison.
Sources revealed that seven months earlier, Pablo Rodriguez, co-founder, AirBit Club, had been identified as guilty of wire fraud conspiracy charges in a United States District Court in March.
“Instead of investing on behalf of investors, Rodriguez hid victims’ money in a complex laundering scheme using Bitcoin, an attorney trust account, and international front and shell companies and used victims’ money to line his own pockets,” Damian Williams, United States Attorney, Southern District of New York, explained.
It is believed that the convicted fraudster was made to pay a forfeiture of $65 million. Furthermore, other items such as a total of 3,800 Bitcoins (BTC) (worth $100 million), Rodriguez’s Irvine residence in California, $900,000 in US dollars seized from the property and nearly $1 million previously held in escrow for a Gulfstream Jet, among others, Cointelegraph concluded.
(With insights from Cointelegraph)