Home / Cryptocurrency / CEO Behind GAW Miners, PayCoin Ponzi Scheme Sentenced to 21 Months in Prison

CEO Behind GAW Miners, PayCoin Ponzi Scheme Sentenced to 21 Months in Prison

Homero Joshua Garza, the CEO of the now-defunct U.S. crypto company GAW Miners, has been sentenced to 21 months in jail for defrauding traders, native information company Hartford Industry stories Thursday, September 13.

Garza gained the decision within the Hartford federal court docket, following his to blame plea to a twine fraud price similar to making and promoting a scamcoin dubbed PayCoin (XPY).

As an alternative of serving the unique 20 12 months sentence, Garza will report back to jail on January four, 2019 and be jailed till 2021, with an extra 3 years of supervised unencumber, together with six months in house detention.

Along with jail time, the previous CEO of GAW Miners should pay off a $nine.2 million restitution to traders, which is the approximate quantity of economic injury wrought through the nine-month crypto rip-off.

Based in 2014, Bloomfield-based GAW Miners was once a company that specialised in production, supplying and promoting particular for crypto mining. The corporate was once close down in 2015 following allegations of working as a Ponzi scheme, which was once adopted through a lawsuit in 2016.

Created through GAW Miners builders, the PayCoin cloud mining cryptocurrency was once introduced in 2014. The virtual foreign money was once in keeping with the SHA-256 set of rules and each proof-of-work (PoW) and proof-of-stake (PoS) protocols.

Whilst GAW Miners had reportedly “assured” traders a $20 flooring worth for PayCoin, the best XPY worth was once $15.92 as a substitute, in step with CoinMarketCap.

In past due August, the alleged former proprietor of crypto trade BTC-e Alexander Vinnik was once indicted and subjected to a “pretend” interrogation through French prosecutors in a Greek Court docket. Following a chronic criminal fight and several other decrease court docket rulings, the Greek Superb Court docket in the end dominated to extradite Vinnik to Russia.

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