A U.S. district decide has sentenced a person to a few years in jail in a fraudulent cryptocurrency mining scheme. The defendant “misappropriated his victims’ cash and failed to supply them with the miners and miner-hosting providers that they had bought from him,” in keeping with the U.S. Division of Justice (DOJ).
Man Sentenced to Jail for Defrauding Traders in Crypto Mining Scheme
The U.S. Division of Justice (DOJ) introduced Thursday that Chester (Chet) Stojanovich has been sentenced to a few years in jail “for defrauding purchasers of cryptocurrency miners and miner-hosting providers.” He pled responsible in November final yr to at least one rely of wire fraud.
The DOJ defined that from a minimum of 2019 till his arrest in April 2022, Stojanovich “allegedly defrauded greater than a dozen victims of greater than $2 million via fraudulent misrepresentations that he would supply his prospects with specialised cryptocurrency-mining computer systems (‘miners’) and miner-hosting providers that would supply the victims with a profitable stream of ‘hash energy’ convertible into cryptocurrency.” The Justice Division added:
As a substitute, Stojanovich misappropriated his victims’ cash and failed to supply them with the miners and miner-hosting providers that they had bought from him.
In addition to failing to supply the consumers with the cryptocurrency mining tools and the internet hosting providers that they had purchased, the DOJ stated Stojanovich “employed misleading practices to create the phantasm that such miners had been acquired and have been getting used to supply hash energy to these prospects.”
Furthermore, Stojanovich allegedly “misappropriated his prospects’ funds and spent the funds on unrelated and private expenditures, together with chartered air flights, lodge rooms, limousines, and personal events,” the Division of Justice detailed. Noting that Stojanovich was sentenced on Thursday earlier than U.S. District Choose Denise Cote, the DOJ concluded:
Along with his jail sentence, Stojanovich … was sentenced right this moment to a few years of supervised launch, forfeiture of $2,158,927, and restitution to his victims within the quantity of $2,108,927.
Do you assume Stojanovich ought to go to jail for greater than three years for defrauding buyers on this crypto mining scheme? Tell us within the feedback part beneath.
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