IcomTech Execs to Pay $5M in Restitution for Defrauding Investors with False Crypto Promises

5 people related to IcomTech, a cryptocurrency Ponzi scheme that defrauded buyers of $8.4 million, have been ordered by a federal court docket to pay over $5 million in restitution and penalties.

The December 11 ruling by the US District Court docket for the Central District of California additionally included jail sentences for 3 of the defendants.

Working between 2018 and 2019, IcomTech marketed itself as a cryptocurrency platform providing every day returns of as much as 2.8%. Buyers have been satisfied their funds have been getting used for cryptocurrency buying and selling and mining, facilitated by way of “Icoms,” a proprietary token. Nevertheless, investigators discovered no proof of such actions. As an alternative, the defendants misused the funds for private bills, together with luxurious items and high-end holidays.

David Carmona, the chief of the scheme, alongside his associate David Brend, received 10-year jail sentences. One other conspirator, Marco A. Ruiz Ochoa, was sentenced to 5 years. Two further defendants, Juan Arellano Parra and Moses Valdez, have been held accountable by way of monetary penalties and have been completely banned from partaking in any CFTC-regulated actions.

The Commodity Futures Buying and selling Fee (CFTC) began its investigation into IcomTech in 2023 after complaints from defrauded buyers. The case highlighted a typical sample in cryptocurrency fraud, the place victims are enticed by guarantees of outsized returns and persuaded to recruit others, fueling a cycle of deception.

The court docket additionally ordered the forfeiture of greater than $1.2 million in belongings linked to the defendants. Regardless of this restoration, many victims are unlikely to recoup their full losses.