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 agency GAW Miners, has been sentenced to 21 months in jail for defrauding traders, native information company Hartford Business studies Thursday, September 13.

Garza obtained the decision within the Hartford federal court docket, following his responsible plea to a wire fraud cost associated to creating and promoting a scamcoin dubbed PayCoin (XPY).

Instead 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 three years of supervised launch, together with six months in residence detention.

In addition to jail time, the previous CEO of GAW Miners must repay a $9.2 million restitution to traders, which is the approximate quantity of monetary injury wrought by the nine-month crypto rip-off.

Founded in 2014, Bloomfield-based GAW Miners was a agency that specialised in manufacturing, supplying and promoting particular for crypto mining. The firm was shut down in 2015 following allegations of working as a Ponzi scheme, which was adopted by a lawsuit in 2016.

Created by GAW Miners builders, the PayCoin cloud mining cryptocurrency was launched in 2014. The digital forex was primarily based on the SHA-256 algorithm and each proof-of-work (PoW) and proof-of-stake (PoS) protocols.

While GAW Miners had reportedly “guaranteed” traders a $20 ground worth for PayCoin, the best XPY worth was $15.92 as an alternative, in accordance with CoinMarketCap.

In late August, the alleged former proprietor of crypto exchange BTC-e Alexander Vinnik was indicted and subjected to a “fake” interrogation by French prosecutors in a Greek Court. Following a protracted authorized battle and several other decrease court docket rulings, the Greek Supreme Court ultimately ruled to extradite Vinnik to Russia.

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