As a part
of a broader crackdown on fraudulent crypto operations in the USA, one of the
masterminds behind the AirBit Club has been sentenced to 12 years in prison.
Pablo Renato Rodriguez, who has run a global crypto Ponzi scheme with his
co-conspirators, lured individuals into investing in a fake cryptocurrency
trading and mining company, laundering the proceeds through complex channels.
Rodriguez
and Gutemberg Dos Santos and other co-defendants founded AirBit Club in 2015.
They promised investors guaranteed profits through club memberships, marketing
it as a multilevel venture in the cryptocurrency industry. However, the
founders engaged in a sophisticated money laundering operation instead of
genuine investments, using the obtained money for personal luxuries like cars
and jewelry.
The scheme
was not limited to the United States; the co-conspirators traveled globally,
hosting events to attract more victims. Investors were given access to an
online portal that falsely showed accumulating profits. When investors tried to
withdraw their money, they were met with delays, hidden fees, or complete
denial of withdrawal.
“Rodriguez
co-founded and led an international multimillion-dollar pyramid scheme that
preyed on mostly unsophisticated investors with false promises that their money
was being invested in cryptocurrency trading and mining,” Damian Williams,
the US Attorney, commented.
