David Carmona, founder of cryptocurrency Ponzi scheme IcomTech, received a 10-year prison sentence following a court ruling last week. This development was revealed on October 4 by the US Attorney’s Office for the Southern District of New York.
Carmona will spend 121 months in prison for cryptocurrency fraud
According to statement issued, Carmona along with other individuals launched IcomTech in 2018 which was presented as a cryptocurrency mining and trading company that helped investors earn profits by acquiring supposed cryptocurrency related investment products.
Carmona and other IcomTech promoters sold these fake mutual funds to unsuspecting victims where they guaranteed daily returns and promised to double their capital within six months. It was noted that purchases were made via cash, checks, transfers and even cryptocurrencies.
Each investor is usually given access to an online portal where he monitors his supposed gains. However, these victims always found it difficult to withdraw their profits or capital from the online platform, resulting in complaints that were appeased with excuses, delays and hidden fees for the few successful withdrawals. As levels of complaints and tensions increased, IcomTech began offering local digital currencies known as “Icoms” as compensation which they claimed would increase in value and could be used as a means of exchanging goods and services.
This initiative also proved to be false leading to the eventual collapse of the IcomTech Ponzi scheme.
Investigations by US authorities quickly revealed that Carmona and other IcomTech conspirators had sold fake cryptocurrency investment products to unsuspecting investors, funneling money from them to attract more victims through flashy exhibitions as well as lavish personal spending.
In December 2022, the U.S. Attorney’s Office, Southern District of New York Announce An indictment against Carmona accuses him of conspiracy to commit wire fraud plead guilty. In October 2024, Judge Jennifer L. Rochon sentenced the cryptocurrency fraudster to 121 months in prison, which will be followed by three years of supervised release.
Commenting on this development, US Attorney for the Southern District of New York, Damien Williams, expressed his great appreciation for Carmona’s prison sentence, saying:
Carmona’s days of defrauding honest people are over, and he now faces significant time in prison.
Meanwhile, former IcomTech CEO Marco Ruiz Ochoa remains in prison after being sentenced to five years in prison in January.
Crypto market overview
In other news, the total value of the cryptocurrency market is around $2.16 trillion after a 1.75% increase in the last day. Market leader Bitcoin continues to trade at around $62,206 with a 1.70% gain over the past 24 hours.
Featured image from iStock, chart from Tradingview