Who Says You Can Runaway?


#1

Homero Joshua Garza, the CEO of the now-defunct U.S. crypto firm GAW Miners, has been sentenced to 21 months in prison for defrauding investors, local news agency Hartford Businessreports Thursday, September 13.

Garza received the verdict in the Hartford federal court, following his guilty plea to a wire fraud charge related to creating and selling a scamcoin dubbed PayCoin (XPY).

Instead of serving the original 20 year sentence, Garza will report to prison on January 4, 2019 and be jailed until 2021, with an additional three years of supervised release, including six months in home detention.

In addition to prison time, the former CEO of GAW Miners will have to repay a $9.2 million restitution to investors, which is the approximate amount of financial damage wrought by the nine-month crypto scam.

Founded in 2014, Bloomfield-based GAW Miners was a firm that specialized in manufacturing, supplying and selling special hardware for crypto mining. The company was shut down in 2015 following allegations of operating as a Ponzi scheme, which was followed by a lawsuit in 2016.

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

While GAW Miners had reportedly “guaranteed” investors a $20 floor price for PayCoin, the highest XPY price was $15.92 instead, according to CoinMarketCap.

In late August, the alleged former owner of crypto exchange BTC-e Alexander Vinnik was indictedand subjected to a “fake” interrogation by French prosecutors in a Greek Court. Following a protracted legal battle and several lower court rulings, the Greek Supreme Court eventually ruledto extradite Vinnik to Russia.

source:https://cointelegraph.com/news/ceo-behind-gaw-miners-paycoin-ponzi-scheme-sentenced-to-21-months-in-prison


#2

Well, this is great. This should be a lesson to all those who are planning to launch their product and scam the people. I wish all countries that has accepted crypto formally would implement some laws like this.


#3

Yes. Hopefully we see more of these. There are a lot of scam ICOs out there. Unrevealed, leaving the investors in vain and penniless (as for their investment). PONZIs are really scary and have been notorious scheme of scammer, why do they still fall for it right? It started on bitconnect, which has now been ordered to stop its operations. Plus those, utility coins which offer great ideas and profitable scheme and are all laid out in their whitepaper but ended up being scam too. This is on of the reasons why there are government bodies banning ICO activities and countries who are skeptic and super strict that do not allow cryptos in their countries.


#4

Exactly. Some seemed scam from the beginning but the sad thing is that some had really good idea and approach but greed took them over and they ended up scam too. SO which project would you trust becomes a really very difficult to decide which ultimately hurts the whole market and as result, govt takes extreme step of banning trading or some activities related to crypto.


#5

Yeah, I know one great and huge project too. Up until now, the bounty distribution is left hanging. And its CEO has been under investigation, with frozen accounts. Due to greed, all those great ideas, successful ICO, supportive community including bounty hunters are now almost useless. They have thrown these great intangibles to nothing. It almost scammed all of us in there. Well the good thing is, its founders are fighting and running against the fraudsters. Hopefully, in time they will reach their ultimate goal and the crazy situation gets reversed. And, honestly a part of me is still hoping I can get my bounty cause I really worked hard for it. Maybe not now.


#6

if this is the future of all the scam projects then I think number of scams will reduce substantially. Till now people were thinking that they can get away after scamming people and stealing their money but especially USA is doing really good in punishing those scammers.

I know one good project too which didn’t even reach the softcap in this bar market but they are funding the project out of their pocket because they believe in it. All types of people are there in this world.