An Arizona man who masterminded a $13 million crypto Ponzi scheme pleaded responsible this week to cash laundering and conspiracy to hinder justice fees.
The U.S. Division of Justice (DOJ) says Vincent Anthony Mazzotta Jr., 54, schemed along with his co-defendant David Saffron and others to fraudulently promise traders high-yield income from crypto investments that pretended to depend on automated buying and selling robots powered by synthetic intelligence (AI).
Mazzotta Jr. lured traders by convincing them to sink cash into a number of crypto funding firms. When these firms disappeared with the traders’ capital, he went one step additional and created a faux authorities entity referred to as the Federal Crypto Reserve (FCR), which solicited 1000’s of further {dollars} from victims by pretending to research those self same corporations.
The DOJ says Mazzotta Jr. additionally obstructed justice after Saffron’s preliminary arrest by destroying proof at his co-defendant’s condominium, and he tried to falsify the information of his enterprise, Runway Magnificence Inc., to cover his participation within the fraud from a federal grand jury.
Invoice Essayli, US Lawyer for the Central District of California, warns that criminals like to make use of the “relative novelty” of crypto property to prey on victims.
Mazzotta Jr. faces a most of 10 years in jail on the cash laundering cost and 5 years for conspiring to hinder justice.
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