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Crypto Scammers Ordered to Pay $5M for IcomTech Ponzi Scheme

Five individuals behind the fraudulent IcomTech Ponzi scheme have been ordered to pay $5 million in civil penalties and restitution. The case sheds light on one of the most notorious crypto scams, which defrauded hundreds of investors through promises of astronomical returns on a fake cryptocurrency trading platform.

Details of the Case

According to a Dec. 11 court statement, IcomTech founder David Carmona, along with promoters Juan Arellano Parra, Moses Valdez, and David Brend, were found guilty of violating the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) regulations.

  • Penalties Imposed:
    • Over $1 million in restitution to defrauded customers.
    • A $1 million civil monetary penalty for each of the four defendants.

Additionally, Marco A. Ruiz Ochoa, who admitted his involvement in the scheme, was issued a consent order, requiring him to pay restitution jointly with the others. The total penalties imposed exceed $5 million.

The court also permanently banned the accused from registering with the CFTC or trading in any CFTC-regulated markets.

The Rise and Fall of IcomTech

IcomTech operated as a Bitcoin mining and trading company, promising returns of up to 100%. Active between 2018 and 2019, the scheme defrauded hundreds of victims by guaranteeing daily returns between 0.9% and 2.8%.

When the company could no longer meet withdrawal requests, it issued a token called “Icoms,” which proved worthless, leaving investors with significant losses. The funds collected were reportedly used to bankroll lavish lifestyles and host extravagant expos to attract more victims.

Legal Outcomes

The CFTC’s civil enforcement action, filed in May 2023, led to severe consequences:

  • David Carmona and David Brend: Sentenced to 10 years in prison.
  • Marco A. Ruiz Ochoa: Received a lighter 5-year sentence for cooperating.
  • Forfeiture of Funds: Carmona surrendered $329,450, while Ochoa forfeited $914,000, totaling over $1.2 million in illicit gains.

The scheme’s unraveling highlights the importance of vigilance in cryptocurrency investments and the critical role of regulatory bodies like the CFTC.

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